LafargeHolcim Bangladesh profit soars by 36% in 2020

Despite 9% down in net sales LafargeHolcim Bangladesh’s net profit posted 36% growth last year.

In a statement issued on Tuesday, the company said various cost and efficiency improvements have helped achieve the impressive results even in the coronavirus pandemic year. Accordingly, LafargeHolcim Bangladesh recommended a 10% final cash dividend for the year ended on 31 December 2020.

“The company has demonstrated resilient results with its focus on health, cost and cash. Our initiatives to focus on digital and innovation provided further impetus to the outstanding results,” Rajesh K Surana, chief executive officer of LafargeHolcim Bangladesh, said.

Performance in 2020:

The company’s sales during the year reduced by 9% to Tk 1,622 crore compared to Tk 1,784 crore a year ago due to Covid-19 lockdown and supply disruptions. Its operating earnings before interest and taxes reached to Tk 295 crore, up 1% over last year.

Profit after tax was over Tk 236 crore, 36% higher than nearly Tk 174 crore a year ago, riding on various cost reduction and amalgamation benefits of taxation.

The company in 2020 launched a specialised waterproofing product — Holcim Water Protect — and also introduced a digital app for better access by the customers. Fixed costs were also significantly lower during the year. The company’s cost management and operational efficiency programmes have maintained its strong momentum in a pandemic year, said the statement.

With its strong balance sheet, LafargeHolcim Bangladesh is well positioned to take advantage from the expected uptick in demand, according to the company.

Outlook in 2021:

Despite the uncertainty and disruptions surrounding Covid-19, the company believes that Bangladesh with its strong record of growth and sound economic policies will continue its growth momentum. The recent initiatives by the government coupled with improvements in inward remittances will help resurgence of rural demand. Additionally, government impetus on infrastructure will play a strong role in driving cement demand.