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LafargeHolcim profit jumps 34% despite construction slowdown

LafargeHolcim profit jumps 34% despite construction slowdown
Logo of LafargeHolcim. Photo: Collected
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LafargeHolcim Bangladesh reported a 34 per cent rise in profit in 2025, supported by demand for premium cement products and growth in aggregates business despite a slowdown in the country’s construction sector.

Net sales rose 6 per cent to Tk2,931.4 crore in 2025 from Tk2,754.3 crore a year earlier, according to the company’s financial statement.

Profit after tax climbed to Tk510.8 crore from Tk381.9 crore in 2024, while earnings per share increased to Tk4.40 from Tk3.29.

Operating earnings before interest and tax rose 11 per cent to Tk655.2 crore, lifting the operating margin to 22 per cent from 21 per cent in the previous year.

The results came when the construction sector faced weaker government spending on infrastructure projects and slower private sector credit growth.

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LafargeHolcim Bangladesh CEO Iqbal Chowdhury said the company maintained growth through strong customer demand and product diversification.

“Our ability to achieve volume growth in both the cement and aggregates segments reflects the continued confidence of customers in our products and services,” he said in a statement.

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The company expanded its specialised cement portfolio during the year.

Products including Water Protect and Fair Face recorded strong growth.

Two new products were introduced: Holcim Coastal Guard for buildings in saline coastal environments and Powercrete for the ready-mix concrete segment.

The company also expanded sustainability initiatives through its waste management platform Geocycle.

More than 45,000 tonnes of non-recyclable waste were co-processed in 2025, replacing about 11 per cent of fossil fuel consumption with alternative fuels.

Iqbal Chowdhury said profitability faced pressure from rising energy costs, inflation and market volatility but cost-efficiency measures and strategic pricing adjustments helped mitigate the impact.

The board declared a 40 per cent cash dividend for 2025, including an interim payout of 18 per cent.

In October 2025 the company approved an interim dividend of Tk1.8 per share based on nine-month performance. On 11 March 2026 the board recommended a final dividend of Tk2.2 per share.

The total dividend payout for the year is expected to reach around Tk465 crore.

LafargeHolcim Bangladesh shares rose 6.52 per cent to Tk53.90 apiece on the Dhaka Stock Exchange on Thursday.

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