Meghna Cement's profit falls 72% in FY23

Meghna Cement Mills – a concern of the Bashundhara Group – experienced a 72% decrease in profit and a 57% decline in revenue during fiscal 2022-23 due to rising raw material and other costs coupled with a slowdown in the construction sector.

Still, the cement manufacturer has decided to pay a 10% dividends – 5% cash, and 5% stock – to its shareholders. The stock dividend is subject to the approval of the Bangladesh Securities and Exchange Commission (BSEC).

The retained amount against the stock dividend will be invested in new material handling projects and the installation of capital machinery to increase production capacity, said the company.

In FY23, its net profit declined to Tk1.58 crore from Tk5.58 crore a year ago, while revenue dropped to Tk352 crore from Tk829 crore.

The company will hold its annual general meeting on 27 December. To this end, it has set 3 December as the record date.

Company Secretary Md Asaduzzaman told The Business Standard, "Revenue and profit fell owing to increasing operational costs and raw material price hikes for dollar appreciation."

He claimed that owing to a slowdown in the construction sector, many cement manufacturers in the country fell into losses, but "we maintained a profit."

"Although the profit fell, the management has recommended the same dividend as the previous year, taking into consideration shareholders' interests."

Meghna Cement Mills is the first manufacturing unit of Bashundhara Group, and it produces more than 1.5 million tonnes a year. At present, its production capacity is approximately 3.4 million tonnes per year.

Listed on both Dhaka and Chittagong stock exchanges, the company markets its product under the registered trade mark "King Brand Cement".