Bangladesh, saw a sharp decline in profit in the financial year 2024-2025, mainly due to higher production costs, higher interest expenses and additional depreciation charges from the new expansion of production facilities.
On October 20, the company issued a price-sensitive disclosure on the Dhaka Stock Exchange (DSE), reporting a 33% year-on-year decline in net profit to Tk 670 million, compared with Tk 1 billion in the previous fiscal. Earnings per share (EPS) fell to Taka 4.52, net asset value per share (NAV) was Taka 62.66, while net operating cash flow per share (NOCFPS) rose sharply to Taka 25.99.
Crown Cement attributed the profit decline to cost pressures on several fronts, including additional depreciation from the newly operational Unit 6, higher interest payments on long-term expansion loans and higher electricity prices. In addition, the company has increased spending on advertising and labor to strengthen its market position, which further compresses profit margins.
Despite these challenges, the cement manufacturer managed to improve its cash flow during the year thanks to better collection efficiency, non-cash adjustments such as depreciation, and extended credit terms from suppliers.
The company acknowledged that the industry is still grappling with geopolitical uncertainty, weak construction demand and weak cement prices, all of which are limiting profitability.
Although Crown Cement has yet to release detailed financial statements for its fiscal year 2025, some data points to strong revenue growth. During the July-March period of fiscal year 2025, the company's revenue reached 28.137 billion Taka, up 15% from the same period of the previous fiscal year. However, higher financing and energy costs wiped out most of the gains. Crown Cement's total outstanding loans – both short-term and long-term loans – stood at Tk 14.91 billion
as of March 2025, reflecting its aggressive investments in capacity expansion and infrastructure upgrades.
Crown Cement was established in 1994 and began commercial operations in 2000 with an initial production capacity of only 600 tons per day. Since then, the company has expanded rapidly to become one of the largest cement producers in Bangladesh. The company was listed on the Bangladesh Stock Exchange in 2011 and now has a total daily production capacity of 19040 tons, equivalent to about 5.7 million tons per year.
As part of its long-term growth strategy, the Board of Directors of the Company approved the purchase of 330 square meters of Deka land at Muqtpur, Munshigan Jeshi, at a price of approximately Taka 1.377 billion including registration costs. The move comes on the heels of a similar acquisition in 2023, when Crown Cement purchased an adjacent 245 square meters of Decca land at a price of Taka 600,000 per square meter of Decca. The continued expansion underscores the company's ambition to strengthen its position in the building materials market and prepare for future demand growth. Earlier in
April, the four sponsoring directors — Jahangir Alam, Mora Muhammad Munju, Mizanur Rahman Mora and Alamgir Kabir — transferred 164 million shares to their family members. Market insiders see the move as a reflection of a succession strategy to gradually involve the next generation in the company's leadership.
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