Crown Cement profit plunges 33% on soaring costs
To reward shareholders, the company’s board has recommended a 21% cash dividend for FY25, maintaining the same payout as the previous year
Crown Cement PLC, one of Bangladesh's leading cement producers, saw its profit tumble by one-third in the 2024-25 fiscal year, weighed down by higher production costs, rising interest expenses, and additional depreciation charges from its newly expanded production facilities.
In a price-sensitive disclosure filed on the Dhaka Stock Exchange (DSE) today (20 October), the company reported that its net profit fell 33% year-on-year to Tk67 crore, compared to Tk100 crore in the previous fiscal year. Earnings per share (EPS) declined to Tk4.52, while the net asset value (NAV) per share stood at Tk62.66, and net operating cash flow per share (NOCFPS) rose sharply to Tk25.99.
Crown Cement attributed the profit drop to several cost pressures – including additional depreciation stemming from its newly commissioned sixth unit, increased interest payments on long-term expansion loans, and rising electricity prices. The company also ramped up spending on advertising and manpower to strengthen its market presence, further tightening profit margins.
Despite these challenges, the cement maker managed to improve its cash flow during the year, thanks to better collection efficiency, non-cash adjustments such as depreciation, and extended credit terms from suppliers.
Keep updated, follow The Business Standard's Google news channel
The company acknowledged that the industry as a whole continues to grapple with geopolitical uncertainties, sluggish construction demand, and weak cement pricing, all of which have constrained profitability across the sector.
Although Crown Cement has yet to publish its detailed financial statement for FY25, partial data shows strong top-line growth. In the July-March period of FY25, the company's revenue reached Tk2,813.70 crore, marking a 15% increase from the same period a year earlier. However, higher financing and energy costs offset much of the gain.
As of March 2025, Crown Cement's total outstanding loans – both short-term and long-term – stood at Tk1,491 crore, reflecting its aggressive investment in capacity expansion and infrastructure upgrades.
To reward shareholders, the company's board has recommended a 21% cash dividend for FY25, maintaining the same payout as the previous year. The annual general meeting (AGM) is scheduled for 22 December, with the record date set for 16 November.
On the trading floor, Crown Cement's stock ended 0.38% lower at Tk53.10 today, giving it a price-to-earnings (P/E) ratio of 7.88. The company's paid-up capital stands at Tk148.5 crore, and its market capitalisation currently totals Tk788.53 crore.
Established in 1994, Crown Cement began commercial operations in 2000 with a modest daily production capacity of 600 tonnes. Since then, it has expanded rapidly, becoming one of Bangladesh's largest cement producers. The company was listed on the country's bourses in 2011 and now boasts a total daily production capacity of 19,040 tonnes, equivalent to around 5.7 million tonnes annually.
In line with its long-term growth strategy, the company's board approved the purchase of 330 decimals of land at West Mukterpur in Munshiganj for approximately Tk13.77 crore, including registration costs. This move follows a similar acquisition in 2023, when Crown Cement bought 245 decimals of adjacent land at Tk6 lakh per decimal. The continued expansion underscores the company's ambition to consolidate its position in the construction materials market and prepare for future demand growth.
Earlier in April this year, four sponsor directors – Jahangir Alam, Mollah Mohammad Monju, Mizanur Rahman Mollah, and Alamgir Kabir – transferred 1.64 crore shares to their family members, a move that market insiders believe reflects a succession strategy to gradually involve the next generation in company leadership.
