Heidelberg Materials Reports 11% Sales Drop, Moves to Loss

Heidelberg Materials, a multinational cement company, has reported a significant financial downturn, experiencing an 11% decrease in sales for the first half of the year compared to the same period last year. The company's financial report reveals that sales of cement and other construction materials generated 684 crore Taka in the first six months of the current year, down from 769 crore Taka in the prior year, marking an 85 crore Taka reduction. This decline in sales has led to a substantial increase in losses. The company incurred a loss of 11 crore Taka in the first half of the current year, a stark contrast to the profit of over 22 crore Taka recorded in the same period last year, indicating a 150% rise in losses. The financial report attributes this downturn to both decreased sales and rising production costs. In the first six months, production costs accounted for 93% of sales, totaling 638 crore Taka against 684 crore Taka in revenue. Last year, production costs were 88% of sales, or 676 crore Taka against 769 crore Taka in revenue. Company Secretary Sultan Riaz Mahmud cited a general decline in cement demand due to the overall economic situation and increased costs for raw materials and transportation, exacerbated by global oil price hikes resulting from Middle Eastern conflicts. He expressed optimism that a recovery in the country's infrastructure sector would lead to a business rebound. The company also released its financial report for the April-June quarter, showing a further 5.5% decrease in sales to 321 crore Taka from 340 crore Taka in the previous year's corresponding quarter. This resulted in a 6 crore Taka loss for the quarter, compared to a profit of 2.65 crore Taka in the same period last year.