Cement producer LafargeHolcim Bangladesh's Q1 2026 profit falls as energy costs rise

Cement producer LafargeHolcim Bangladesh reported a profit after tax of Taka 1.12 billion ($9.2 million) in the first quarter of 2026, down 19% year over year, as higher energy costs and inflationary pressures weighed on earnings, the company said in a statement May 12.

Revenue fell 6% year over year during the quarter.

The company attributed the weaker performance to rising fuel and operating costs linked to the Middle East conflict, although it said operational efficiency measures helped support margins.

LafargeHolcim Bangladesh said its Geocycle waste management unit co-processed about 12,000 mt of nonrecyclable materials and achieved a 13% replacement rate for fossil fuels with alternative fuels during the quarter.

The company said market conditions could remain challenging through the rest of the year due to elevated inflation and energy costs.

Market participants in Asia said Bangladesh's cement and clinker demand is expected to weaken further during May-August as the approaching monsoon season dampens construction activity. Buying interest has been weak amid increased freight rates from Vietnam to Bangladesh.

"As cement consumption is entering its off-season, demand is likely to decline progressively," a South Asia-based buyer said.

Platts, part of S&P Global Energy, assessed cement (ASTM type I) FOB Vietnam at $38.5/mt on May 7, up from $38/mt the previous week. Platts assessed cement clinker FOB Vietnam at $33.5/mt, up from $33/mt week over week.