LafargeHolcim Bangladesh, one of the country’s leading multinational cement manufacturers, has announced a 38% cash dividend for 2024, amounting to approximately Tk441 crore. This comes despite a 36% drop in the company’s net profit for the year. The dividend declaration was made during the company’s board meeting held on Wednesday, as confirmed by an official statement.
The board of directors recommended a 19% cash dividend as the final payout for the year, in addition to the 19% interim cash dividend already distributed based on the financial results of the first nine months. However, the total dividend for 2024 marks a 24% decrease from the previous year, when the company posted record profits. The proposed dividend and the audited financial report will be presented for approval at the annual general meeting scheduled for May 8, with a record date for eligibility set for April 9.
LafargeHolcim cited the political transition and a challenging macroeconomic environment as factors that contributed to the difficult year. The company reported a 3% decline in revenue, which amounted to Tk2,754.30 crore. Its net profit fell by 36%, reaching Tk381.90 crore.
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Iqbal Chowdhury, CEO of LafargeHolcim Bangladesh, described 2024 as an eventful year for Bangladesh, one in which the company successfully navigated the challenges. He highlighted the company’s progress in expanding its innovative sales channels, such as direct-to-retail and net retail outlets. Special products now contribute 8% to the total revenue, while the aggregates business saw a 25% growth in operating profit.
The company also made significant strides in its environmental goals. Through its global platform, Geocycle, LafargeHolcim co-processed over 45,000 tons of diverse waste streams, replacing more than 10% of fossil fuels, advancing its green growth agenda.
Looking ahead, Chowdhury emphasized the company’s continued focus on expanding sales channels, digitizing operations, scaling the aggregates business, and enhancing sustainable waste co-processing through Geocycle. He further noted, with a steadfast commitment to operational excellence, cost optimization, and innovation, LafargeHolcim Bangladesh remains confident in delivering strong results in the future.
Listed on the Dhaka Stock Exchange since 2003, LafargeHolcim Bangladesh’s shares closed at Tk48.90 on Wednesday, a 0.20% decrease from the previous session. The company, a joint venture between the Holcim Group (Switzerland) and Molins (Spain), has invested approximately $500 million over the past two decades, making it the largest foreign direct investment in Bangladesh’s cement sector. This investment has allowed LafargeHolcim to establish a fully integrated cement plant and three grinding stations, solidifying its position as a key industry player.
With its cutting-edge technology and skilled workforce, LafargeHolcim Bangladesh produces world-class cement and other building materials, catering to the growing demand driven by Bangladesh’s infrastructure development and improving socio-economic conditions. In addition, the company has created direct and indirect employment opportunities for over 3,000 people, making significant contributions to the country’s economic growth and development.
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