Home ›› 13 Jul 2022 ›› Stock
Footwear brand Bata Shoe Company (Bangladesh) Ltd has re-entered the export market with new ventures after recouping its pandemic-induced losses in the first quarter of 2022.
According to the company's financial statements, its export revenue decreased 36 per cent in the first quarter of 2021 from the previous year, but later saw a growth of 34 per cent during the same period in 2022.
Due to increased sales volume and amount, particularly in the post-Covid period, earnings per share (EPS) increased to Tk 5.01 and net asset value (NAV) rose 1.9 per cent.
Previously, as a result of Covid, the company faced negative earnings per share in 2020 for the first time since 2016, with net profit declining significantly.
Speaking on the matter, Bata Shoe Company Secretary Hashim Reza said, “Our export market is not as active as it once was, and as a result, our export revenues did not increase as we had anticipated. But the export revenues are currently growing, with sales in the local market also showing signs of improvement.”
The company's revenue increased by 16 per cent, or Tk 30.28 crore, between December and March of 2022.
At this time, Bata logged revenue of Tk 214 crore, up from Tk 164 crore in the same period last year.
“After a promising start in 2021, the second wave of Covid arrived in April 2021, bringing lockdowns, shortened shop hours, damage to the Eid business (which accounted for nearly 30% of total company revenue), and the loss of the school revenue. There were 51 days of complete lockdowns, and 32 days of partial lockdowns, during which stores were shuttered. The Covid-19 pandemic had a major impact on our industry in the year 2021,” said Bata chairman Rajeev Gopalakrishnan in the latest
annual report.
There was a record-breaking cost of goods sold for Bata in this first quarter.
In Q1 of 2022, the cost of goods sold has risen to Tk 131 crore, up from Tk 92 crore in the same period of the previous decade.
Consequently, its gross profit jumped by 30 per cent to Tk 83 crore compared with the same period of 2020.
The shoemaker's profits rose to Tk 6.84 crore in the first quarter of the current year. The company incurred a loss of Tk 4.90 crore in the same period of the previous year.
The company has a total unclaimed dividend of more than Tk 1.06 crore. So far, Tk 17.17 crore has been distributed. Bata will distribute Tk 13.68 crore as a cash dividend for 2021.
The company was listed on the stock market in 1985 and has a paid-up capital of Tk 13.68 crore.
Out of the company's total shares, sponsors and directors jointly held 70 per cent institutional investors 20.50 per cent, foreign investors 1.58 per cent, and general investors 7.83 per cent.
On Tuesday, the closing price of each of the company's shares was Tk 915 on the Dhaka Stock Exchange.
