Premier Cement Mills PLC of Bangladesh recently announced its financial results for the July-September 2024 quarter (1QFY24-25). The company’s profit for the quarter fell to BDT14.45m (US$0.12m), a decrease from BDT57.6m during the same period last year. Revenue also declined by 17 per cent in the 1QFY24-25, totalling BDT5.19bn compared to the previous year.
The decrease in profit can be attributed to high finance costs and reduced sales. Shafiqur Rahman, Premier Cement’s company secretary, stated in local media that sales declined during the quarter due to a slowdown in the market in July, which affected both sales targets and profit margins.
He also noted that rising interest rates further influenced profits. To address this issue, the company plans to issue preference shares to raise BDT1.61bn in low-cost funds to reduce its debt burden.
According to the company’s financial statement, its total loans amounted to BDT21.3bn at the end of September.
