LafargeHolcim shares declines despite jump in profits
Shares of LafargeHolcim Bangladesh fell 2.85 per cent on the Dhaka Stock Exchange yesterday as the company posted a decline in sales in 2020 because of the Covid-19 outbreak.
The cement producer's sales fell 9 per cent year-on-year to Tk 1,622 crore last year, according to the company's data.
However, the company's profit made a 36 per cent year-on-year jump, for which the cement maker gave credit to its cost-cutting measures and tax benefits from amalgamation.
LafargeHolcim Bangladesh bagged Tk 236 crore in profits last year, up from Tk 173 crore in the previous year.
"The company has demonstrated resilient result with its focus on health, cost and cash," said Rajesh K Surana, CEO of LafargeHolcim Bangladesh.
The company's initiatives on digital and innovation provided further impetus to its outstanding results, he said.
"We are very proud of the agility and great teamwork of our employees and the strong support of our customers and suppliers."
The board of directors of the company recommended 10 per cent cash dividend for the year that ended on December 31, 2020.
Last year, the company launched "Holcim Water Protect", a specialised waterproofing product. It also introduced a digital app to ensure wider access to the products for its customers.
"Despite the uncertainty and disruptions surrounding Covid-19, we believe that Bangladesh, with its strong record of growth and sound economic policies, will continue its growth momentum," the company said in a press release.
The recent initiatives by the government coupled with improvements in inward remittances will help rural demand make a turnaround, it said, adding that the government impetus on infrastructure will play a strong role in driving cement demand.
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