LafargeHolcim Bangladesh’s profit falls 21pc in Jan-Sep

LafargeHolcim Bangladesh PLC reported a 21 percent year-on-year decline in net profit to 279.7 crore taka in the January-September period of 2026, as higher energy, fuel, transportation and raw material costs squeezed margins despite revenue growth.

The cement maker’s revenue rose 6 percent to 2,301.6 crore taka during the nine months, up from 2,166.1 crore taka in the same period last year, according to its financial statement released on Monday.

Operating earnings before interest and taxes (EBIT) fell 19 percent to  349.7 crore taka from 429.6 crore taka a year earlier.

Earnings per share also declined to 2.41 taka from 3.06 taka, while the operating EBIT margin narrowed to 15.2 percent from 19.8 percent, reflecting mounting cost pressures.

The company attributed the weaker profitability to elevated energy and production costs, including higher fuel, transportation and raw material expenses. It also cited the Middle East conflict and sluggish domestic economic activity as factors weighing on its operations.

“We delivered a resilient nine-month performance through our commitment to innovation and operational excellence, despite increased costs due to the conflict in the Middle East and constrained demand due to a slowdown in the domestic economy,” said Iqbal Chowdhury, chief executive officer of LafargeHolcim Bangladesh.

He said the company had undertaken cost-efficiency measures and strategic pricing reviews to navigate market volatility.

Its specialised cement products, including Holcim Water Protect, Supercrete Plus and Coastal Guard, continued to perform strongly, while the aggregates business increased prices to sustain margins.

The company’s sustainable waste management arm, Geocycle, co-processed more than 31,000 tonnes of non-recyclable waste during the period, replacing around 10 percent of fossil fuel use with alternative fuels.

Meanwhile, the board declared an interim cash dividend of 10 percent, equivalent to 1 taka per share of 10 taka face value, amounting to 116 crore taka for the third quarter ended September 2026.

The company said elevated energy prices and external macroeconomic uncertainties would continue to pose challenges for the remainder of the year, while it was working to build momentum for 2027.