HeidelbergCement Bangladesh Ltd has reported a 1.6 percent increase in profits for the first quarter of 2024, despite a 16 percent year-on-year decline in sales. The company’s unaudited financial statements reveal a profit of Tk 39.32 crore in the January-March quarter, up from Tk 38.69 crore in the same period the previous year.
Despite the drop in sales, HeidelbergCement Bangladesh managed to increase its profitability by reducing administration, distribution, and selling expenses. In the first quarter of 2024, the company’s warehousing, distribution, and selling expenses decreased to Tk 10.71 crore, compared to Tk 12.55 crore in the previous year. Similarly, administrative costs saw an 11 percent year-on-year decline to Tk 16 crore.
This cost optimization strategy contributed to an improvement in earnings per share, which rose to Tk 6.96 from Tk 6.85 in the corresponding periods of the two consecutive years. Additionally, the company’s net asset value per share increased to Tk 74.16 as of March 31, 2024, up from Tk 67.2 as of December 31, 2023.
HeidelbergCement Bangladesh’s stock performance saw a slight decline, with shares ending at Tk 229.3, representing a 1.12 percent fall from the previous day.
Heidelberg Cement Group first entered Bangladesh in 1998, establishing a floating terminal with onboard packing facilities in the port of Chattogram. In 1999, the group expanded its presence by constructing a greenfield manufacturing plant near Dhaka under the name “Scan Cement International Limited,” with an installed capacity of 0.75 million tonnes per year.
Subsequently, in 2000, the HeidelbergCement Group acquired a minority position in the Chattogram-based company “Chittagong Cement Clinker Grinding Co. Limited,” later obtaining a controlling stake. By 2003, the company was rebranded as HeidelbergCement Bangladesh Limited.
Today, the company boasts an annual production capacity of 24 lakh tonnes, reflecting its significant growth and commitment to the Bangladeshi market.