LHBL: 2Q23 Earnings Update

Net income of LafargeHolcim Bangladesh Limited increased by 39% YoY on the back of increased revenue contribution from aggregate segment and margin expansion of cement segment.

206% YoY revenue growth for aggregate segment and 25% YoY revenue growth for cement segment: Revenue from sale of limestone aggregates rose 206% YoY to BDT 2.17bn during 2Q23. The segment retained operating margins almost twofold higher than the cement & clinker segment. Additionally, revenue contribution from the aggregate segment rose to 14% of total revenue, compared to 6% a year earlier. Moreover, revenue from cement segment grew 25% YoY.

Margin expansion of cement & clinker segment: Operating margin of the cement & clinker segment expanded by 600bps YoY during 2Q23. In the same period, revenue from the cement segment grew 25% YoY to BDT 13.03bn. However, LHBL’s net margin remained at 25% YoY due to an increase in the effective tax rate.