LafargeHolcim Bangladesh Limited (LHBL), a building material solutions provider, saw its profit decline by 33 percent in the first half of 2024 compared to the same period the year prior due to a sales decline amidst ongoing economic challenges.

LHBL's profit fell to Tk 243 crore from Tk 361.5 crore in the same period, according to a company statement.

The company said, due to macroeconomic challenges, industry de-growth resulted in a net sales reduction of 5 percent during January to June of 2024.

According to the statement, the company's net sales revenue reduced to Tk 1,442 crore in the first half of 2024 whereas it was Tk 1,526 crore in the same period last year.

It also said operating earnings before interest and taxes reached Tk 346.6 crore in the first half of 2024, representing a 25 percent decline compared to the same period last year.

This was attributed to increased costs and the sharp devaluation of the local currency, the taka, against the US dollar.

"Bangladesh's economy is going through certain challenges which are affecting the construction industry, resulting in a decline in sales growth during the first half of 2024. However, our focus for sales channel expansion, stronger aggregates performance, digitalisation and addressing the waste challenges through 'Geocycle' remained consistent," said Iqbal Chowdhury, chief executive officer of the company.

"With continuous emphasis on agility, costs, and innovation, we are confident of demonstrating solid performances in the quarters to come," he added.

The company said the rest of the year would be challenging due to persistently high inflation and pressure on the foreign exchange.

"Despite that, we are optimistic and well poised to continuously deliver a strong performance with industry-leading margins," Chowdhury added.

The company's earnings per share reduced to Tk 2.09 from Tk 3.11 in the same period.

Share of the company closed at Tk 62 on the Dhaka Stock Exchange yesterday.

Operating for more than two decades, LafarageHolcim Bangladesh has invested $500 million in building a fully integrated cement plant and three grinding stations.

The joint venture between the Holcim Group, which is based in Switzerland, and Cementos Molins, based in Spain, represents the largest foreign direct investment in the sector.