LafargeHolcim Bangladesh reported a 19 per cent year-on-year decline in profit to Tk 1.12 billion in the January-March quarter this year, weighed down by lower sales amid a challenging macroeconomic environment.
The multinational cement producer posted earnings per share (EPS) of Tk 0.97 for the quarter ended March, down from Tk 1.20 in the same period a year earlier, according to a company statement issued on Tuesday.
Revenue slumped 6 per cent year-on-year to Tk 8.04 billion as elevated inflation, sluggish private sector credit growth and slower public infrastructure spending weighed on overall demand in the construction industry.
The company said rising energy costs linked to the Middle East crisis and persistent inflationary pressures squeezed profitability during the quarter. Despite the pressure on margins, the company managed to maintain its industry-leading profitability through operational efficiency and strict cost discipline.
"Despite a challenging landscape defined by persistent inflation and higher energy costs, we remain committed to resilience through innovation and operational excellence," said Iqbal Chowdhury, chief executive officer of LafargeHolcim, in a statement.
He said the company's specialised product portfolio, including Water Protect and Fair Face, continued to perform strongly and helped reinforce its market leadership.
The company also launched two new products early this year - Holcim Coastal Guard and Powercrete - targeting coastal infrastructure and ready-mix concrete segments respectively.
"These additions are expected to serve as key performance drivers in the coming quarters," Mr Chowdhury said.
LafargeHolcim said its sustainability initiative through Geocycle also delivered positive results during the quarter. The company co-processed around 12,000 tonnes of non-recyclable waste and achieved 13 per cent fossil fuel replacement using alternative fuels.
"To navigate current market volatility, we have proactively implemented rigorous cost-efficiency measures and strategic pricing reviews," Mr Chowdhury added.
"By balancing this commitment to innovation with operational efficiency, we are well-positioned to catalyse improved performance and maintain sustained momentum."
Mr Chowdhury, however, warned that the rest of the year will be challenging due to ongoing inflation and higher energy costs. "Despite that, we are optimistic and well poised to deliver strong performance with leading industry margin."
LafargeHolcim produces clinker and cement under the Supercrete and Holcim brands at its Chhatak plant in Sunamganj -- the country's only fully integrated dry-process cement plant.
The company holds a competitive advantage as it sources limestone from its own mines in Meghalaya, India, and transports it directly to its Chhatak plant via a cross-border conveyor belt, reducing freight costs and exposure to global raw material price volatility.
Meanwhile, the stock of LafargeHolcim closed at Tk 50 per share on Tuesday, remaining unchanged over the previous day on the Dhaka Stock Exchange.
Annual performance
LafargeHolcim posted a 34 per cent year-on-year profit growth to Tk 5.11 billion in 2025, driven by higher sales of premium cement products and solid expansion in its aggregates business.
Its annual net sales for the year rose 6 per cent year-on-year to Tk 29.31 billion, supported by steady business momentum and stronger customer engagement.
Based on profit growth, the board declared a 40 per cent cash dividend for the year, including an 18 per cent interim dividend that has already been paid.
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