Crown Cement's profit dropped 89 per cent YoY in July-September 2024 to BDT37.7m (US$0.315m) from BDT345m in the same quarter a year ago. Total sales revenue during this period reduced to BDT7bn from BDT7.12bn, primarily due to the lower demand for cement in Bangladesh.
According to the company’s public announcement, sales revenue decreased by 1.74 per cent due to a 2.5 per cent decrease in sales volume resulting from low market demand during the rainy season and political instability from July to August 2024.
Officials continued to say that despite the lower cost of imported raw materials in the international market, the cost of goods sold increased by 2.1 per cent, mainly due to higher factory overhead resulting from the charging of additional deprecation on newly-installed sixth unit, electricity tariff hike and under utilisation of freshly installed production capacity.
On the finance cost, the company adds that though exchange loss decreased in the 1QFY24-25 ended 30 September 2024, the charging of interest on the project loan against the installation of the new sixth unit and interest rate increased on the working capital loan impacted per bag finance cost increased by 26.6 per cent, ie BDT7.21/bag.
by Abdul Rab Siddiqi, Pakistan
