Apex Footwear generated 67 per cent higher profit to Tk 53.5 million in October-December (the second quarter of FY26) last year, supported by higher sales and lower finance costs compared to the corresponding period of the previous year.
The listed home-grown shoemaker witnessed a 13.07 per cent year-on-year increase in revenue in the quarter to December last year, while finance costs fell by 8.23 per cent year-on-year.
The company boosted sales through aggressive advertising in targeted markets, especially in new and rural segments, as evident in its frequent promotional offers. It also benefitted from a shift in consumer demand towards local brands and value-for-money products.
Finance costs had increased for the previous four years, but the company broke away from the trend in the current fiscal year. This resulted in the highest quarterly profit growth since FY23.
"The main factors [behind the financial performance] were the increase in net sales revenue and the increase in profit before tax," the company said.
Following the earnings disclosure, the local footwear giant's stock rose 2.3 per cent to Tk 180 per share on Tuesday on the Dhaka Stock Exchange.
The company said its earnings rose as both export and local sales increased significantly in the quarter compared to the same period a year earlier.
Apex Footwear claims on its website that it is the largest shoemaker in South Asia, with over 30 years of industry expertise. The company manufactures and sells footwear and accessories in both domestic and international markets. It has two state-of-the-art manufacturing plants and a top-notch tannery unit, separate from its manufacturing facilities.
Alongside its own brands, Apex Footwear's local segment also outsources and sells footwear and accessories of various foreign brands, including Venturini, Nino Rossi, and Moochi. The company continued to focus on product diversification, which it expects will help boost sales further in the future.
The company also recorded higher cash flow in the second quarter of FY26 compared to the same period a year earlier.
Net cash flow per share from operations stood at Tk 91.86 for July-December 2025, compared to Tk 57.07 for July-December 2024.
The cash flow increased by Tk 34.79 per share, mainly due to a 22.21 per cent rise in receipts from customers, while payments to suppliers, employees, and others increased by 15.82 per cent year-on-year during the period.
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