Bata Shoes declares 75% interim cash dividend

Despite continuous losses, Bata Shoe Company (Bangladesh) limited has recommended a 75 per cent interim cash dividend to its shareholder for the current year.

The payout recommendation came at a meeting of the company’s board of directors on Thursday, it said in a statement on Thursday.

Subject to approval of the shareholders, the listed shoe manufacturer will pay Tk 7.5 dividend against each share of Tk 10.

Market insiders say the company recommended the dividend thanks to its big surplus reserve.

As of October 29, the company was holding a reserve of Tk 352 crore.

Last year, the company disbursed a 25 per cent (Tk 2.5 for each share) cash dividend to its shareholders.

According to the price sensitive information, Bata Shoe made a loss of Tk 11.43 crore in the third quarter (July-September) of the current year, when the loss was Tk 51.37 in the previous year’s same period.

The company suffered loss for the first time in its history after the Covid-19 hit the country hard in 2020.

It saw a loss of Tk 132.51 crore last year, when it reported a profit Tk 49.39 crore for 2019.

Bata Shoe Company (Bangladesh) Limited started its operation in Bangladesh in 1962. Currently, it operates two manufacturing facilities – one in Tongi, Gazipur and the other in Dhamrai,

Dhaka.

According to its website, with a production capacity of 1,60,000 pairs of shoes daily, the company annually sells about 3 crore pairs of shoes.

It was listed with Dhaka and Chittagong stock exchanges in 1985. The company’s market capitalization is Tk 1,235 crore now.