Heidelberg Materials Bangladesh reports a substantial decrease in profits by 47% during the initial half of the year.
Heidelberg Materials Bangladesh, a multinational cement manufacturer based in Germany, has reported a decrease in net profit and sales for the first half of 2025.
In the same period of the previous year (2024), the company's sales were Tk821.89 crore, and net profit was Tk2.79 crore. However, in 2025, the net profit declined by 5% to Tk2.65 crore, while sales dropped by 6.41% to Tk769.15 crore.
The financial statement provided by Heidelberg Materials Bangladesh is for the period ending June 2025, and the company's net profit and sales decreased primarily due to a significant decline in revenue and overall earnings. Specifically, the company reported a 50% drop in net profit for the first quarter, with revenue falling by 11% compared to the same period the previous year.
The end of half year EPS (Earnings per Share) for Heidelberg Materials Bangladesh declined to Tk3.95, down from Tk7.45 in the same period of the previous year. The profit of the company in the first quarter of 2025 was Tk19.65 crore, which was significantly lower than Tk39.32 crore in the same quarter previous year.
In the second quarter of 2025 (April to June), Heidelberg Materials Bangladesh's sales declined by 0.47% to Tk339.89 crore. The sharp decline in profitability was highlighted further by an 81% plunge in net profit in the second quarter alone. This substantial fall in earnings despite relatively modest changes in sales reflects pressure on margins or increased costs, although specific operational or market factors causing this were not detailed in the available reports.
Despite the financial challenges faced by the company, the shareholders of Heidelberg Materials Bangladesh approved its board recommended 25% cash dividend for the year 2024, the same as the dividend paid in 2023. The financial statement was approved in a board meeting held on 24 April.
In conclusion, Heidelberg Materials Bangladesh’s decreased net profit and sales in the first half of 2025 resulted from a notable reduction in revenue combined with a disproportionate fall in profit levels, indicating challenges in either pricing, costs, or market demand within that period. The company's financial performance in the second half of the year remains to be seen.
[1] Heidelberg Materials Bangladesh reported a 47% decrease in net profit year-on-year to Tk22.30 crore in the first half of 2025. [2] The financial statement of Heidelberg Materials Bangladesh was approved in a board meeting held on 24 April. [3] In the second quarter of 2025 (April to June), Heidelberg Materials Bangladesh's sales declined by 0.47% to Tk339.89 crore. [4] The end of half year EPS (Earnings per Share) for Heidelberg Materials Bangladesh declined to Tk3.95.
- The decrease in Heidelberg Materials Bangladesh's net profit and sales for the first half of 2025, as shown in their financial statement, suggests a struggle within the industry's financial landscape.
- Amidst the decline in net profit and sales, Heidelberg Materials Bangladesh’s shareholders, despite the business facing challenges, approved a 25% cash dividend for the year 2024, reflecting faith in the company's future prospects in the broader business sector.
