Apex Tannery incurs massive losses, declares lowest dividend

Apex Tannery - a 100 per cent export-oriented leather processing and finishing company incurred a massive loss of Tk 12.5 crores in FY23. The company has also declared a 5 per cent cash dividend for FY23 - the lowest after being listed on stock exchanges.

The per-share loss was Tk 8.17 in the period, and earnings per share (EPS) were Tk 0.82 in FY22. The company made the official disclosure on the Dhaka Stock Exchange (DSE) website on Wednesday which frustrated both retail and institutional investors.

Following the declaration, its stock price dropped 4.6 per cent to Tk 103.2 on the Dhaka bourse.

During the period, net asset value (NAV) per share rose to Tk 54.85 from Tk 63.39, while net operating cash flow per share stood at Tk 5.38 compared to Tk 6.62 earlier.

Meanwhile. the company's market capitalisation stood at Tk 164 crore, paid-up capital at Tk 15 crore and surplus reserve at Tk 38 crore.

Company Secretary of the Apex Tannery Sushanta Kumar Paul could not be reached over the phone for comments on the reasons behind these massive losses.

The final approval of dividends will come in the annual general meeting (AGM) scheduled to be held on December 11 at 11:00am through the digital platform.

The record date for the entitlement of dividends is November 7, 2023.

It also incurred a massive loss in the last fiscal year, which ended on June 30, 2022.