LafargeHolcim Bangladesh sees 34% jump in profit in 2025
Reflecting the improved profitability, the company recommended a total 40% cash dividend for shareholders for the year 2025.
LafargeHolcim Bangladesh PLC reported a strong financial performance in 2025, posting a 34% year-on-year rise in profit driven by higher sales, premium product demand and steady growth in its aggregates business despite a slowdown in the construction sector.
According to the company's price-sensitive disclosure and press release issued on 11 March, the multinational cement maker recorded a net profit of Tk510 crore for the year, up from Tk382 crore in 2024. Revenue also increased by 6% to Tk2,931 crore from Tk2,754 crore a year earlier, while operating profit grew 11% to Tk655 crore from Tk587 crore.
The company said the growth came amid steady business momentum and stronger customer engagement, even as the broader construction industry faced headwinds due to reduced public sector spending and tighter private credit conditions.
Reflecting the improved profitability, LafargeHolcim recommended a total 40% cash dividend for shareholders for the year 2025. The payout includes an 18% interim cash dividend already distributed earlier in the year and a proposed 22% final cash dividend. The total dividend amounts to roughly Tk465 crore, equivalent to 40% of the company's paid-up capital.
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The dividend proposal will be placed for approval at the company's annual general meeting scheduled for 13 May, while the record date to determine eligible shareholders has been set for 9 April.
Iqbal Chowdhury, chief executive officer of LafargeHolcim Bangladesh, said the company managed to deliver strong results despite challenging market conditions.
"In 2025, the broader construction industry faced headwinds from subdued public sector investment and constrained private credit growth. Yet, LafargeHolcim Bangladesh delivered a strong performance," he said.
He added that the company achieved volume growth in both the cement and aggregates segments, reflecting strong customer confidence in its products and services.
According to Chowdhury, the company's focus on innovation has also contributed to business expansion. Specialised cement products such as "Water Protect" and "Fair Face" registered significant growth during the year, indicating strong consumer preference for premium solutions.
Alongside its commercial success, the company also continued its sustainability initiatives. Through its Geocycle platform, LafargeHolcim co-processed more than 45,000 tonnes of non-recyclable materials in 2025 and replaced around 11% of fossil fuel consumption with alternative fuels.
Chowdhury said the company also faced profitability pressures from rising energy costs and market volatility but addressed these challenges through cost-efficiency measures and strategic pricing adjustments.
The company began in 2026 with the launch of new specialised cement products, including "Holcim Coastal Guard" designed for coastal construction projects and "Powercrete" targeted at the ready-mix concrete segment.
These innovations are aimed at meeting specialised customer needs while strengthening the company's competitive position in Bangladesh's construction materials market.
In terms of market performance, LafargeHolcim shares recently closed at Tk50.60 on the Dhaka Stock Exchange (DSE), down 0.59% from the previous trading session. The company's market capitalisation currently stands at around Tk5,877 crore.
As of February, sponsors and directors held 63.39% of the company's shares, while institutional investors owned 22.09%. Foreign investors accounted for 0.80% of the shareholding, with the remaining 13.72% held by general public investors.
LafargeHolcim Bangladesh, listed on the DSE in 2003 as a greenfield investment, is one of the country's leading building materials producers. The company has invested nearly $500 million in Bangladesh, representing one of the largest foreign direct investments in the cement sector.
The investment enabled the establishment of a fully integrated cement plant along with three grinding stations, strengthening the company's production capacity and supply chain.
The company operates as a joint venture between Switzerland-based Holcim Group and Spain-based Cementos Molins. Leveraging advanced technology and skilled professionals, the company produces a wide range of cement and building material solutions for infrastructure and real estate projects.
Looking ahead, the company said it is focusing on several strategic priorities to sustain profitability in the coming quarters. These include improving operational efficiency, investing in a lower-cost energy mix through alternative fuels, diversifying the product portfolio and strengthening pricing strategies.
At the same time, LafargeHolcim is continuing investments in sustainability initiatives and digital transformation to enhance productivity and reinforce its long-term market leadership in Bangladesh's building materials industry.
