Friday, May 03, 2024
Only one out of six listed companies in the tannery sector posted earnings in the first six months of FY24, compared to the same period previous year. Meanwhile, two companies posted losses and one saw a drop in profits.
Among these listed companies, Bata Shoe Company (Bangladesh) Ltd calculates its fiscal year completion in December. As a result, no financial margin of the company has been disclosed at this time.
The closing of the remaining five is in June, but one company is yet to release its financial statement.
Only Fortune Shoes Ltd posted earnings of less than 1 per cent compared to the first six months of the previous financial year, according to the companies' published data.
Remaining Apex Tannery Ltd and Legacy Footwear Ltd counted losses. Apex Footwear Ltd earnings are down compared to the previous year, and Samata Leather Complex Ltd has not yet released their financial report for the first six months of FY24.
Fortune Shoes Ltd – the only company in the Tannery Industries sector to report a profit during the first six months (July-December) of FY24.
The company posted a net profit of Tk 19.45 crore in the first six months FY24, compared to Tk 19.28 crore recorded in the same period previous year. Fortune Shoes Ltd posted a 51 per cent profit drop in FY23 compared to the previous year due to rising production costs.
According to Company Secretary Riaz Uddin Bhuiya, “Fortune Shoes itself cannot sell footwear products in the local market as it is a 100 per cent export-oriented company.
"For this reason, the board has chosen to establish a new retail business serving the neighborhood. The new company would use outsourcing to get products for the retail market."
Fortune Shoes started exporting footwear in 2010 and got listed on the capital market in 2016. It has three factories in Barishal and Savar.
Apex Footwear Ltd, a subsidiary of Apex Group, posted a 31 per cent decrease in profit in the first half of FY24, defying the ongoing economic crisis and high inflation.
As per its financial statements, the publicly traded company’s profit dropped to Tk 4.64 crore in the first half of FY24, from Tk 6.67 crore in the year before.
The footwear manufacturer reported earnings per share of Tk 3.25 for the first half, which was Tk 4.74 in the previous year.
This company’s net asset value (NAV) per share was Tk 217.92 as on December 31, 2023 and Tk 217.85 as on June 30, 2023. The net operating cash flow per share (NOCFPS) was Tk 91.21 for the July-December period of 2023, against Tk 89.32 for the July-December period of 2022.
Company Secretary Omar Faruque said, “EPS decreased as the company's net sales revenue decreased compared to the same period last year. It was not possible to make the losses up with cost control in all areas of operations.”
Apex Tannery – a 100 per cent export-oriented leather processing and finishing company – incurred a massive loss of Tk 3.74 per shares for FY24 First half. It had made a loss of Tk 3.48 in the same period of the previous year.
The Company said that NOCFPS has negatively increased as cash receipts from customers decreased compared to the same period of the previous year.
Additionally, increase in payment for purchase of leather, chemicals, spare parts and increase in payment to creditors and other expenses caused the negative increase in NOCFPS. NAV has decreased due to decrease of fair valuation surplus and retained earnings.
Legacy Footwear Ltd posted a 115 per cent loss in the first six months of FY24. The company posted a loss per share of Tk 0.12 during the period, compared to earnings loss of Tk 0.79 in the previous period.
