Crown Cement PLC, in Bangladesh, recently released its annual report for FY23-24. During the last financial year, the company earned a profit after tax of BDT1001m (US$0.83m). In a statement, the company's Managing Director, Mollah Mohammad Majnu, emphasised that the company is focussed on upgrading its existing manufacturing facilities to meet future demands. He stated, “We acknowledge a pressing need for immediate capacity addition. We have taken necessary steps, and the results will materialise in the upcoming quarters.”
Regarding revenue, he mentioned that this year’s 15.4 per cent growth is attributed to a 9.9 per cent increase in sales volume, a five per cent rise in sales prices and improved revenue per tonne, driven by a favourable shift in the product mix. By consistently increasing sales of premium products and prioritising cost management, the company has significantly enhanced profitability over the past year.
He further noted that installing the latest technology is improving cement production quality. The new sixth unit, equipped with advanced German technology from Loesche, has a production capacity of 8040tpd, increasing the company’s production capacity by 70 per cent.
The cost of goods sold rose by 16 per cent, largely due to the higher sales volume and a 2.9 per cent increase in raw material costs, impacted by the taka’s depreciation against the US dollar. Raw material consumption increased by 13.1 per cent. The gross profit margin slightly decreased by 0.5 per cent, primarily due to higher raw material costs and additional depreciation related to the sixth unit. Finance costs rose due to interest rate hikes and term loan interest associated with the new plant.
Despite these challenges, earnings per share (EPS) increased by 64 per cent, rising from BDT4.11 to BDT6.74, thanks to higher sales and effective cost-control measures.
by Abdul Rab Siddiqi, Pakistan
