LafargeHolcim continues to reward shareholders
LafargeHolcim Bangladesh declared 10 per cent cash dividend for 2019, which is the same as in the previous four years, as the cement maker continues to hold steady amidst a rise in raw material prices.
The only green field company of the stock market took 12 years to start paying dividends, but now it is providing dividends every year. The cement company got listed in 2003.
Now, its earnings per share (EPS) is also rising though it dropped suddenly in 2017. In 2017, the company's EPS fell 64 per cent to Tk 0.69.
The company's EPS rose 56 per cent year-on-year to Tk 1.50 in 2019. Its initiatives on cost optimisation helped it to achieve a growth of profit-after-tax by 56 per cent to Tk 173.7 crore.
LafargeHolcim Bangladesh now owns four cement plants, including the country's only operational integrated cement plant in Chhatak.
"2019 was a challenging year for the cement industry," said Rajesh Surana, chief executive officer of LafargeHolcim Bangladesh.
The impact of the increase in raw material costs and additional taxes was significant.
"Despite this impact, LafargeHolcim demonstrated a strong performance trend. Our focus on improving operational efficiencies, driving commercial innovation and cost optimisation continues to be effective."
The company's consolidated sales revenues for the year rose to Tk 1,784 crore, up by Tk 120.8 crore from 2018.
The cement makers' stock price rose about 33.86 per cent to Tk 42.3 in the last three months.
The company has three subsidiaries: Holcim Bangladesh, Lafarge Umiam Mining and Lum Mawshun Minerals.
"Now, the company is getting the benefits of the amalgamation because it already has reduced many types of costs," said an official of the company requesting anonymity.
LafargeHolcim Bangladesh acquired 100 per cent shares of Holcim Cement (Bangladesh) for Tk 504.7 crore. The transfer of shares of Holcim Cement was completed on January 7, 2018.
The company targeted to increase revenue and reduce unnecessary costs at the same time, the official said.
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