Heidelberg sinks into losses in Q2

Heidelberg Materials Bangladesh slipped into the red in the second quarter (Q2) of 2026 as soaring raw material costs, weak demand and intense market competition squeezed profit margins.
The Germany-based cement producer reported a net loss of more than Tk 61 million for the April-June quarter, reversing a net profit of Tk 26.5 million in the same quarter last year, according to its unaudited financial statements released on Thursday.
The cement manufacturer's earnings per share (EPS) stood at negative Tk 1.09 for the quarter ended June 30 this year, compared with positive Tk 0.47 a year earlier.
Revenue also declined during the quarter, with sales falling 5.6 per cent year-on-year to Tk 3.21 billion, reflecting lower sales volumes amid subdued construction activity and stiff competition in the domestic cement market.
The company said profitability was hit by a sharp rise in raw material costs that it could not fully pass on to customers through higher selling prices because of intense price competition. Lower sales volume and thinner margins per tonne further weighed on earnings.
The weak quarterly performance also pushed the company into the red for the first half of the year. Heidelberg Materials posted a net loss of Tk 110.8 million for the January-June period, compared with profit of Tk 223 million in the corresponding period of 2025.
The latest results underscore the pressure facing Bangladesh's cement manufacturers, which continue to grapple with elevated import costs for clinker and other raw materials and exchange-rate volatility. At the same time, demand from the construction sector has remained pressure.
Despite the earnings setback, the company's cash generation showed some improvement. Net operating cash flow per share (NOCFPS) improved to negative Tk 0.89 for the January-June period from negative Tk 10.14 a year earlier, mainly because of lower payments to suppliers, particularly for raw materials.
Meanwhile, net asset value (NAV) per share declined to Tk 70.86 as of June 30, 2026, from Tk 73.92 at the end of December 2025.
The disappointing quarterly performance follows a sharp decline in the company's earnings last year. Heidelberg Materials' annual profit for 2025 plunged 56 per cent to Tk 201 million from Tk 462 million in 2024 as higher input costs and lower sales squeezed profitability.
Reflecting the weaker earnings, the company's board recommended an 11 per cent cash dividend for 2025, sharply lower than the 25 per cent cash dividend paid for 2024.
Investors reacted cautiously to the latest earnings announcement. The company's share price fell 0.82 per cent to Tk 231 on the Dhaka Stock Exchange on Thursday.

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