Heidelberg Cement Bangladesh witnessed a 1.12% drop in its shares, falling to Tk 229.30 at the Dhaka Stock Exchange. This followed a significant 15% year-on-year decrease in sales during the first quarter. Despite the sales setback, the multinational company managed to achieve a 1.62% growth in profit. This was attributed primarily to a rise in net sales price per tonne and a reduction in the cost of goods sold, as outlined in its financial report released on Wednesday.
During the January-March quarter of 2024, Heidelberg Cement recorded sales worth Tk480 crore. However, its turnover value at the country’s premier bourse stood at Tk1.17 crore on the same day. Saikat Khan, Director of Legal and Corporate Affairs at Heidelberg Cement Bangladesh, cited competitors’ price reductions in the cement sector as a contributing factor to the sales decline. He emphasized that despite market pressures, their pricing strategy remained unchanged, impacting sales performance. Additionally, the overall growth of the cement sector saw a slight decline of 0.7%.
As reported, financial disclosures reveal that HeidelbergCement’s cost of goods sold amounted to Tk400 crore, representing 83.37% of its total revenue for the quarter. This compares to Tk481.69 crore in the same period of the previous year, accounting for 84.82% of total revenue. Despite the sales downturn, the company’s net profit after tax for the first quarter increased to Tk39.32 crore, up from Tk38.69 crore the previous year. Earnings per share (EPS) rose to Tk6.96, while the net asset value (NAV) per share climbed to Tk74.16 as of March 31, 2024. However, the net operating cash flow per share (NOCFPS) decreased to Tk23.
The rise in NAV per share was largely attributed to net profit compared to December 31, 2023. Conversely, NOCFPS declined due to lower sales volume and collection during the period. HeidelbergCement Bangladesh has recommended a 25% cash dividend to its shareholders for the fiscal year 2023. An annual general meeting has been scheduled for May 8 to secure shareholders’ approval for the dividend and the annual audited report.
In 2023, the company posted an EPS of Tk8.13. Despite incurring a loss of Tk23 crore in 2022, it had paid a 10% cash dividend. As the company navigates market challenges and pursues strategies for growth, shareholders await further developments at the upcoming annual general meeting.
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