Heidelberg Cement's profit plummeted 69 per cent year-on-year to Tk 28 million in April-June quarter this year, thanks to lower sales amid lingering macro-economic challenges.
During the time, the Germany-based cement manufacturer's sales plunged 25 per cent year-on-year to Tk 3.41 billion, according to its financial statements published on Monday.
A company official said, requesting not to be named, that high inflation squeezed the sales revenue while people were reluctant to spend money on not-so-necessary things.
The company's half-yearly sales also dropped 19 per cent year-on-year to Tk 8.21 billion while profit fell 12 per cent to Tk 4.21 billion in January-June.
The company's cost of sales went up amid higher input costs along with the sharp devaluation of local currency against the US dollar.
The cost of sales, which includes all associated costs to produce cement, stood at Tk 7.14 billion in January-June this year, which was 90 per cent of total sales during the time, up from 88 per cent of total sales in the same period last year.
The cement maker managed to offset some of the costs by increasing selling prices but stubborn inflation and lower sales added to the woes.
The net operating cash flow per share, a measure of a company's ability to generate cash from its operations, dropped to Tk 15.04 per share, down from Tk 40.68 per share a year ago, mainly for lower sales volume and collection.
Despite the decline in profit, the stock rose 0.10 per cent to Tk 301.9 per share on Monday on the Dhaka Stock Exchange.
ANNUAL PERFORMANCE
The cement maker secured a profit of Tk 460 million in 2023, after suffering a net loss of Tk 233 million in 2022. Its annual sales were up 7 per cent year-on-year to Tk 17.96 billion in 2023.
Encouraged by the remarkable turnaround, the company paid a 25 per cent cash dividend for 2023, increased from 10 per cent for 2022.
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