LafargeHolcim Bangladesh reports 31% growth in operating profit in Q3 amid COVID-19

Frontline cement producer LafargeHolcim Bangladesh Ltd has reported 31% growth in operating profit in Q3, 2020 amid COVID-19 outbreak.

“We are very proud of the resilience, agility and great team work of our employees and the strong cooperation with our customers and suppliers. Our efforts on HEALTH, COST and CASH have ensured that we stay focused during the crisis, while our fast progress on digital helped us being effective in the marketplace” CEO & Country Representative of the company Rajesh Kumar Surana said in a press release issued on Thursday.  

Performance

In a challenging market environment, Net Sales during the quarter increased by 3% to 3,655 mBDT compared to 3,558 mBDT for the same quarter last year supported by sales and marketing initiatives. 

Profit After Tax for the quarter registered an improvement of 71% to 654 mBDT against 381 mBDT during the previous year’s quarter on the back of internal efficiencies, the press release reads.

It further mentions that the company’s cost management and operational efficiency programs have maintained their strong momentum. 

During the quarter, enhanced focus on supply chain management, contract negotiations, and improved production efficiencies have helped in partially addressing the impact of softer volume growth. 

Fixed cost and Selling, General & Administrative expenses were also significantly lower during this quarter on a year-on-year basis. 

With its strong balance sheet, LafargeHolcim Bangladesh is well-positioned to take advantage of the expected uptick in demand, the press release claims. 

Outlook

Despite the uncertainty and disruptions surrounding COVID-19, the company believes that Bangladesh, with its strong record of growth and sound economic policies, will rebound on its growth trajectory. 

The press release mentions that the recent initiatives by the government, coupled with improvements in inward remittances, will help the resurgence of rural demand. Additionally, government impetus on infrastructure will play a strong role in driving cement demand.