Heidelberg cement recommends no dividend
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Saturday
February 04, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
SATURDAY, FEBRUARY 04, 2023
Heidelberg cement recommends no dividend

Stocks

Ahsan Habib Tuhin
26 April, 2020, 11:30 am
Last modified: 26 April, 2020, 11:51 am

Related News

  • Two textile firms allowed to issue stock dividends
  • Disparity in regulators' dividend policies hurts investors
  • Auditor finds shortfall in Ambee Pharma’s dividend account
  • Higher costs push Heidelberg Cement into quarterly losses
  • Tk2.21cr dividend provided to Bangladesh Labour Welfare Foundation fund

Heidelberg cement recommends no dividend

In 2019 the company incurred a net loss of Tk3.30 against each share, whereas net profit per share was Tk14.33 in the previous year

Ahsan Habib Tuhin
26 April, 2020, 11:30 am
Last modified: 26 April, 2020, 11:51 am
Company officials of the Heidelberg Cement blamed the 5% maximum tax on imports of raw material imposed in the last budget for the annual loss. Photo: Collected
Company officials of the Heidelberg Cement blamed the 5% maximum tax on imports of raw material imposed in the last budget for the annual loss. Photo: Collected

Heidelberg Cement Bangladesh Ltd has not recommended any dividend for the first time since it began operation as a multinational company following the acquisition of a local cement plant.

In the 2019 financial year that ended on December 31, the company incurred a net loss of Tk3.30 against each share, whereas its net profit per share or EPS was Tk14.33 in the previous year.

In the 2018 financial year, the company paid 75 percent cash dividend to its shareholders. That year its net profit after tax was more than Tk80 crore. But in 2019 it incurred a net loss of Tk18.64 crore.

Company officials blamed the 5 percent minimum tax on imports of raw material imposed in the last budget for the annual loss.

Seeking anonymity, a company official told The Business Standard that last year Heidelberg Cement's tax expenses rose by around Tk47 crore, which added to its existing problems in the ongoing price war in the cement market.

The official said production cost increased, while the price of cement did not increase due to an unhealthy competition in the market. That resulted in a loss for the company.

The company refrained from paying any dividend from retained earnings this year.

Last year, it had acquired Emirates Cements Bangladesh and an adjacent small power plant for over Tk182 crore.

Besides, the company is also investing in expanding its own cement production facility near Dhaka.

"Management preferred no dividend in such a context," said the official.

The company announced May 28 as its record day for the upcoming annual general meeting called on June 24.

Meanwhile, the government reduced the minimum tax on cement raw material import from 5 percent to 3 percent at the beginning of this year. That helped Heidelberg Cement Bangladesh to book a net profit of Tk4.35 crore in the first quarter, which is still 77 percent less than that of a year ago.

Over the January-March quarter, the company's sales increased by 6 percent to Tk382.62 crore. But cost of goods sold also increased by 9 percent, and that reduced earnings per share to Tk0.77.

The company was listed in the Dhaka Stock Exchange in 1989 as Chittagong Cement Clinkers Grinder, which was later acquired by German multinational Heidelberg.

Currently, sponsors and directors hold 60.67 percent of company shares, institutional investors have 26.08 percent, foreign investors 1.11 percent and general investors hold 12.14 percent shares.

The closing price of each Heidelberg share was Tk140 at the Dhaka Stock Exchange on the last trading day – March 25. Over the previous 12 months the share's highest price was Tk385. 

Economy / Top News

Heidelberg Cement Bangladesh Limited / Heidelberg Cement / dividend

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Illustration: TBS
    Cash-strapped banks fail to maintain emergency cash
  • Is the IMF to blame for growing pressure on your wallet?
    Is the IMF to blame for growing pressure on your wallet?
  • Photo: Joynal Abedin Shishir/TBS
    BNP's anti-govt rally underway at Nayapaltan

MOST VIEWED

  • Loan provisioning eased to boost banks' participation in stock market
    Loan provisioning eased to boost banks' participation in stock market
  • Special auditor appointed at Alhaj Textile
    Special auditor appointed at Alhaj Textile
  • Representational image/File photo
    Stocks trading higher on narrowing trade deficit, inching up remittance inflow
  • How pharmas performed against high headwinds
    How pharmas performed against high headwinds
  • Apex Footwear thrives despite high inflation
    Apex Footwear thrives despite high inflation
  • Al-Madina Pharma allowed to raise Tk5cr through QIO
    Al-Madina Pharma allowed to raise Tk5cr through QIO

Related News

  • Two textile firms allowed to issue stock dividends
  • Disparity in regulators' dividend policies hurts investors
  • Auditor finds shortfall in Ambee Pharma’s dividend account
  • Higher costs push Heidelberg Cement into quarterly losses
  • Tk2.21cr dividend provided to Bangladesh Labour Welfare Foundation fund

Features

Sketch: TBS

Say 'Salud' before your salad main course

5h | Food
With only one government run specialised cancer hospital in the capital — the National Institute Of Cancer Research and Hospital (NICRH) in Mohakhali — patients have no option but to resort to private hospitals. Photo: Noor A Alam.

Cancer care: Medical treatment and beyond

6h | Panorama
Andy Mukherjee. Sketch: TBS

What makes India's billionaires' support special for Adani

1d | Panorama
Photo: Rejaul Hafiz Rahi

A jackal farewell

1d | Earth

More Videos from TBS

Concord launches new plant to produce environment friendly bricks

Concord launches new plant to produce environment friendly bricks

2h | TBS Stories
How Asif Khan would invest his fresh funds right now

How Asif Khan would invest his fresh funds right now

2h | TBS Markets
A proper price formula can help investors to plan big

A proper price formula can help investors to plan big

1d | TBS Round Table
Rumors about Sarika that everyone thinks are true

Rumors about Sarika that everyone thinks are true

1d | TBS Entertainment

Most Read

1
Leepu realised his love for cars from a young age and for the last 40 years, he has transformed, designed and customised hundreds of cars. Photo: Collected
Panorama

'I am not crazy about cars anymore': Nizamuddin Awlia Leepu

2
Photo: Collected
Energy

8 Ctg power plants out of production

3
The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo
Economy

IMF approves $4.7 billion loan for Bangladesh, calls for ambitious reforms

4
Fund cut as Dhaka's fast-track transit projects on slow spending lane
Infrastructure

Fund cut as Dhaka's fast-track transit projects on slow spending lane

5
Photo: Collected
Court

Japanese mother gets guardianship of daughters, free to leave country

6
Belal Ahmed new acting chairman of SIBL
Banking

Belal Ahmed new acting chairman of SIBL

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]