LafargeHolcim Bangladesh 1Q20 net profit rises 46%

LafargeHolcim Bangladesh sustained its profitability during January-March 2020, despite the ongoing COVID-19 pandemic.

LafargeHolcim Bangladesh's net profit surged about 46 per cent YoY to BDT522.45m (US$6.2m) in the 1Q20, against earnings of BDT357.81m in the 1Q19. The rise in profit can be attributed to a decrease in cost of goods sold, alongside a reduction in finance cost and lower income tax during this accounting period. However, the company said hat the increase of revenue for January-March 2020 compared with the equivalent year-ago period was due to the amalgamation of Holcim Cement (Bangladesh) Ltd with LafargeHolcim Bangladesh Ltd, effective from 26 November 2019.

However, the company's total revenue slipped to BDT5.12bn from BDT5.2bn. On the other hand, the company incurred a lower cost of sales at BDT3.97bn versus BDT4.2bn in previous quarter of last year.

General and administrative expenses were higher at BDT338m against BDT277m in same period last year, while sales and marketing expenses increased to BDT149m compared to BDT132m in the corresponding period of last year. The financing cost was down to BDT33m from BDT70m.

The company's board of directors approved the 1Q consolidated financial statements 2020 (unaudited) in a virtual meeting last week.