Bata Shoe, one of the most popular footwear brands in the country, returned to profits in the first quarter (January-March) of the ongoing calendar year after drowning in losses amid the coronavirus pandemic.
The shoemaker’s profits rose to Tk 6.84 crore in the January-March period of 2022 while it was at a loss of Tk 4.90 crore during the same period the previous year, according to the company’s financial statements.
Bata Shoe had incurred losses for the first time in its 58-year history in Bangladesh during the April-June period of 2020 as it missed the country’s main shopping season, namely Eid, due to government restrictions aimed at curbing the spread of Covid-19.
The company returned to profits in the second quarter (April-June) of 2021 but a second wave infections again drowned the company in losses.
However, shoe sales recovered with the easing of the pandemic situation and so, Bata Shoe was able to return to profits this year.
In its quarterly report, the company said that its earnings per share improved significantly driven by a growth in sales, especially in the post-coronavirus era.
As such, its earnings per share stood at Tk 5.01 by the end of the first quarter this year while it was Tk 3.58 in the negative at the same time in 2021.
After lifting the nationwide lockdown in August last year, the government removed all remaining restrictions on public movement by this February.
As such, schools were allowed to reopen and normalcy gradually returned to the country’s economy.
“So, the first quarter started with good demand for school shoes, which contributed to improving revenue by almost 16 per cent in that period,” Bata Shoe said in its report.
Aligned with revenue, cost of sales also increased by almost 9 per cent in that quarter.
Besides, operating expenses increased by almost 10 per cent due to business growth at the same time, it added.
The company’s sales rose 16 per cent year-on-year to Tk 214 crore in the first quarter of 2022.
Bata Shoe is one of the operating companies of the Bata Shoe Organization (BSO) and a subsidiary of Bafin (Nederland) BV in the Netherlands, which holds 70 per cent of the company’s shares.
Bata Shoe is mainly engaged in the manufacturing and marketing of leather, rubber, plastic and canvas footwear, hosiery and accessory items. The company’s manufacturing plants are situated in Tongi and Dhamrai.
The listed multinational shoemaker yesterday disclosed its yearly performance for 2021. Its earnings per share stood at Tk 5.01 in the negative in 2021 and Tk 96.83 in the negative the year before that.
Although it remained in loss, Bata Shoe declared 25 per cent final cash dividend for the year, so total cash dividend of the year, including interim dividend, stood at 100 per cent.
Stocks of Bata Shoe, which was listed in 1985, rose 1.60 per cent to Tk 925 at the Dhaka Stock Exchange (DSE) yesterday.
The company’s paid-up capital was Tk 13.6 crore while it has a reserve and surplus of Tk 352 crore, according to DSE data.
Sponsors holds 70 per cent of the shoemaker’s stocks while 20.44 per cent are held by institutions, 1.58 per cent by foreign investors and 7.98 per cent by general investors.
– With The Daily Star input
