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LafargeHolcim profit falls 21% as costs bite

Nine-month sales rise 6% to Tk2,301.6cr, but higher energy, transport and raw-material costs squeeze margins

LafargeHolcim profit falls 21% as costs bite
A collected logo of LafargeHolcim
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LafargeHolcim Bangladesh’s profit after tax fell 21 per cent year on year to Tk279.7 crore in the first nine months of 2026, as higher energy, fuel, transport and raw-material costs outweighed a 6 per cent rise in sales.

Net sales rose 6 per cent to Tk2,301.6 crore in January–September from Tk2,166.1 crore a year earlier, driven by pricing adjustments and stronger demand for value-added products, the cement maker said after its board meeting on Monday.

Operating earnings before interest and taxes (EBIT) fell 19 per cent to Tk349.7 crore from Tk429.6 crore, while the operating EBIT margin narrowed to 15.2 per cent from 19.8 per cent.

The profit-after-tax margin declined to 12.2 per cent from 16.4 per cent. Earnings per share dropped 21 per cent to Tk2.41 from Tk3.06.

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LafargeHolcim Bangladesh CEO Iqbal Chowdhury said higher costs linked to the conflict in the Middle East and weaker domestic demand had pressured margins.

He said specialised products including Holcim Water Protect, Supercrete Plus and Coastal Guard continued to perform strongly, while the aggregates business benefited from higher pricing and maintained healthy margins.

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The company said its aggregates business provided a stable operational base during the period.

Its sustainable waste-management arm, Geocycle, co-processed more than 31,000 tonnes of non-recyclable waste and achieved around 10 per cent fossil-fuel replacement with alternative fuels.

LafargeHolcim said it had introduced tighter cost-efficiency measures and strategic pricing reviews to navigate market volatility.

The board declared a 10 per cent interim cash dividend for the third quarter ended September, equivalent to Tk1 per share with a face value of Tk10. The payout will total Tk116 crore.

The company expects elevated energy prices and other external pressures to remain challenging through the rest of the year, while seeking to build stronger momentum for 2027.

LafargeHolcim Bangladesh, incorporated in 1997 as Lafarge Surma Cement Limited, changed its name to LafargeHolcim Bangladesh Limited in 2017 and to LafargeHolcim Bangladesh PLC in 2024.

The company became a public limited company in 2003 and listed on the Dhaka and Chittagong stock exchanges following its initial public offering that year. It currently has two subsidiaries in India that support the parent company.

LafargeHolcim Bangladesh shares closed 0.19 per cent lower at Tk52.2 on the DSE on Monday.

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