B Mirror Report: Heidelberg Materials Bangladesh PLC reported a sharp decline in financial performance for the 2025 fiscal year, as surging raw material prices and intense competition weighed heavily on its earnings.

The multinational cement producer posted a 57% year-on-year drop in net profit to Tk 20 crore. In response, the company’s board recommended a reduced cash dividend of 11% (Tk 1.10 per share), down from 25% in the previous year.

According to the audited financial results approved on April 23, annual revenue edged down by 1.52% to Tk 1,451 crore. However, increased production costs led to a 12% fall in gross profit, which stood at Tk 153 crore.

Earnings per share (EPS) declined to Tk 3.55, while net asset value (NAV) reached Tk 73.92 per share. Net operating cash flow per share turned slightly negative at Tk (0.04), indicating liquidity pressure.

The company’s financial condition worsened further in the first quarter of 2026. It reported a net loss of Tk 4.95 crore for the January–March period, compared to a profit in the same quarter a year earlier. Quarterly revenue dropped 16% to Tk 362.4 crore, while gross profit fell 55% to Tk 25 crore. This resulted in a loss per share of Tk 0.88 for the quarter.

Company officials attributed the downturn to rising raw material costs and stiff competition, which limited their ability to pass on higher expenses to customers. Despite this, efforts to reduce operating costs and settle supplier liabilities helped improve cash flow during the period.

Originally listed in 1989 as Chittagong Cement Clinker Grinder, the company is now owned by Heidelberg Materials.

On the Dhaka Stock Exchange, the company’s share price slipped 0.35% to Tk 224.90. The Annual General Meeting (AGM) is scheduled for June 18, with May 20 set as the record date. Sponsor-directors currently hold 60.67% of the company’s shares.