Crown Cement's FY25 profit dips 33pc as expenses offset revenue gains

Crown Cement has reported a 33 per cent year-on-year drop in profit to Tk 0.67 billion for FY25, despite a rise in revenue.
In a disclosure on Monday, the company attributed the decline in profit to higher marketing expenses, additional depreciation from a newly inaugurated plant, and increased finance costs.
Md. Ahasan Ullah, chief financial officer (CFO) of Crown Cement, told The FE that although the cement industry witnessed modest growth in FY25, Crown Cement's revenue outpaced the industry average.
"To capture greater market share, we pursued aggressive marketing, which pushed up our marketing expenses and impacted profitability," he said.
The CFO added that the company's newly commissioned sixth production unit also contributed to higher depreciation expenses, which further weighed on profit. "Depreciation had a major impact, along with higher finance costs [in the year] compared to last year," Mr Ahasan noted.
Despite the profit decline, the board declared a 21 per cent cash dividend for FY25, the same as the previous year. The record date is November 16, and the annual general meeting (AGM) will be held on December 22.
Crown Cement generated nearly 200 per cent higher cash flow from operations in FY25 compared to the previous year, with operating cash flow per share rising to Tk 26 at the end of June this year.
The company said the improved cash flow was supported by non-cash depreciation charges from the new unit and better working capital management through extended credit terms with suppliers and shorter credit periods for customers.
Net asset value (NAV) per share also increased to Tk 62.66 in June this year, up from Tk 56.99 a year ago.
The latest annual earnings were largely in line with its nine-month performance.
Following the earnings disclosure, share price of Crown Cement - the second-largest cement producer after LafargeHolcim - remained unchanged at Tk 53.10 each on the Dhaka Stock Exchange on Monday.
The company's price-to-earnings ratio now stands at 11.75 based on unaudited financials and 7.88 based on audited results.

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