Home ›› 03 Oct 2022 ›› Stock
Apex Footwear Limited, a renowned shoe brand in the country, has stepped up to ensure an increased consumer outreach for making it a more popular brand among people, a company source familiar with the matter said.
The company has been working to expand the businesses of its associate brands as well.
The publicly listed company has already started reaping the benefits of initiatives taken as both its sales as well as net profit soared in the fiscal year 2021-22.
In FY22, the shoe maker’s net profit surged by 31.24 per cent to Tk 13.82 crore on a year-on-year basis. In the previous fiscal, it had registered a net profit of Tk 10.53 crore.
The board of directors of the company recommended a 35 per cent cash dividend and a 10 per cent bonus dividend for fiscal 2021-22.
The company would have to spend 30 per cent out of its total net profit to disburse the 35 per cent cash dividend among its general shareholders.
It will use the remnant 70 per cent or Tk 9.96 crore to increase its paid-up capital base, the company source said.
Apex Footwear Company Secretary, Omar Faruque told The Business Post, “The lion portion of our revenue is generated from the footwear business. But we are now investing into other brands concerned, including non-leather goods, to boost the company’s business.”
Except for Apex shoes, the company is also the retail seller of shoe brands like Venturini, Maverick, sprint, nino rossi, twinkler, Fly, schoolsmart and moochie.
In December last year, the securities regulator Bangladesh Securities and Exchange Commission had asked 64 listed companies having paid-up capital base below Tk 30 crore each to lift it to the Tk 30 crore mark.
The BSEC had also fixed 31 December 2022 as the deadline for them to implement the course.
Currently, the company has a paid-up capital base of Tk 11.81 crore.
“We have also declared a 10 per cent bonus dividend along with the cash one to raise our paid-up capital base to meet the regulatory requirement,” said Omar Faruque.
The company’s earnings per share (EPS) stood at Tk 11.7 in FY22 against Tk 9.36 in the previous fiscal.
This EPS is up 22 per cent year-on-year and the highest since the FY19.
In the fiscal year 2018-19, the company posted an EPS of Tk 10.91.
According to the annual financial report, the company registered a 15.06 per cent increase in its local sales in FY22, helping it secures a lucrative net profit.
The company’s net asset value (NAV) per share also surged in FY22 owing to the increase in non-current assets and current assets.
The shoe maker’s NAV stood at Tk 252.95 in FY22 versus Tk 244.58 in the previous year.
Apex Footwear currently has a long-term loan of Tk 342 crore and a short-term credit of Tk 793 crore, according to the data available on the Dhaka Stock Exchange (DSE) website.
Out of the total shares, its directors hold a 31.75 per cent stake, while institutional investors and general investors own 25.19 per cent and 43.06 per cent respectively.
On Sunday, Apex Footwear’s share rose 1.97 per cent to Tk310.10 per share on the Dhaka Stock Exchange.
Got listed in 1993, the company has a market capitalisation of Tk 359 crore.
