Heidelberg Materials' profit decline gradually
Heidelberg Materials Bangladesh, a leading multinational cement manufacturer, reported a gradual decline in its quarter-to-quarter net profit, primarily due to lower margins per ton and a reduced volume of product sales.
Despite these short-term challenges, the German-based cement manufacturer showed a recovery on a year-on-year basis in the July–September quarter, signalling signs of stabilisation in its operations.
The share price of the company closed at Tk231.50 on the Dhaka stock exchange on Thursday.
According to the company's financial statements, revenue for the January–March quarter stood at Tk429.59 crore.
In the following quarter (April–June), revenue declined sharply by 20.96% to Tk339.56 crore, reflecting weaker demand and reduced sales volumes.
The downward trend continued in the third quarter (July–September), with revenue falling further by 3.65% to Tk327.15 crore.
During the same period, the company's net profit fell steadily, from Tk19.65 crore in the first quarter to Tk2.65 crore in the second quarter, and further down to Tk0.93 crore in the third quarter.
Its earnings per share dropped the same way, from Tk3.48 crore in the first quarter to Tk0.47 crore in the second quarter, and further down to Tk0.16 crore in the third quarter.
This consecutive quarterly decline highlights the pressure on the company's short-term earnings, even as it attempts to regain profitability on an annual basis.
However, in the January to September period, the cement manufacturer's revenue decreased by 1.17% to Tk1,096 crore from Tk1,115 crore compared to the previous year.
In the same period, its net profit dropped by 43.78% to Tk23.23 crore from Tk41.32 crore compared to the previous year.
Its earnings per share stood at Tk4.11, which was Tk7.31 in the same period of one year ago. And its net asset value per share stood at Tk74.48 at the end of September 2025.
In July to September, its revenue stood at Tk327.15 crore, which was Tk293.49 crore in the same period of one year ago.
In the third quarter, its net profit was Tk93 lakh, and earnings per share was Tk0.16.
Meanwhile, the company also recommended a 25% cash dividend to its shareholders for the year 2024, according to its statement. It had paid the same dividend in 2023.
The company got listed on the Dhaka bourse in 1989 as Chittagong Cement Clinkers Grinder, which was later acquired by HeidelbergCement, currently renamed as Heidelberg Materials.
As on 30 September 2025, its sponsors and directors hold 60.67% of shares, while institutional investors have 28.60%, foreign investors 0.04% and the remaining 10.69% is held by the general shareholders.