LafargeHolcim Bangladesh (LHB) registered a 31% increase in operating profit in the third quarter (Q3) of the 2020 calendar year, demonstrating strong recovery onslaught of Covid-19 in the country’s cement market.
In the July to September quarter (Q3) of this year, they earned Tk844 million, a 31% year-on-year rise from Tk642 crore earned during the same period in 2019, said a press release.
“Our efforts on health, cost and cash have ensured that we stay focused during the crisis while our fast progress on digital helped us being effective in the market place” said LHB Chief Executive Officer and Country Representative Rajesh Kumar Surana regarding the business update.
LHB business update showed net sales during the quarter increased by 3% to Tk3,655 million compared to Tk3,558 million in the same quarter last year supported by sales and marketing initiatives.
Profit after tax for the quarter registered an improvement of 71% to Tk654 million against Tk381 million during the previous year’s quarter on the back of internal efficiencies.
LHB said its cost management and operational efficiency programs have maintained their strong momentum. During the quarter, enhanced focus on supply chain management, contract negotiations and improved production efficiencies have helped in partially addressing the impact of softer volume growth.
It said despite the uncertainty and disruptions surrounding Covid-19, the company believes that Bangladesh with its strong record of growth and sound economic policies will rebound on its growth trajectory.
The recent initiatives by the government coupled with improvements in inward remittances will help resurgence of rural demand, added LHB.