Heidelberg recovering from losses

Heidelberg Cement Bangladesh Ltd has continued to recover from losses as it registered profit for the second quarter in a row thanks to a reduction in the cost of sales.

The multinational company made a profit of Tk 9.11 crore in April-June against a loss of Tk 3.75 crore during the same quarter a year earlier.

As a result, the earnings per share returned to positive territory at Tk 1.61 in the second quarter of 2023 from a negative Tk 0.66 in the identical period in 2022.

This raised Heidelberg Cement's total profit to Tk 47.80 crore in January-June, against a loss of Tk 20.52 crore in the first half of 2022, according to its unaudited financial statements.

Thus, it posted Tk 8.46 earnings a share in January-June from a negative EPS of Tk 3.63 in the first half of 2022.

The company said its earnings rose due to higher net sales, according to a disclosure on the Dhaka Stock Exchange.

The cement maker's shares, however, fell 3.18 per cent to Tk 289.10 on the DSE yesterday.

Heidelberg sold Tk 1,020 crore worth of cement in January-June, registering roughly 10 per cent year-on-year growth. The cost of sales came down to 88 per cent during the period from 94 per cent last year.

The net operating cash flow also increased in January-June on the back of higher sales collection, shifting of supplier payments to UPAS (Usance Payable at Sight) loans, and higher bank interest income.

Under the letter of credit, exporters get payments after their shipment and presentation of required documents while importers make payments on maturity.