Bata Shoe Company (Bangladesh) posted an 86 per cent year-on-year growth in profit for the first half of 2026, driven by stronger sales and improved operating cost management.
The multinational footwear manufacturer reported a net profit of Tk 504 million for January-June period, up from Tk 272 million in the same period last year. Earnings per share (EPS) jumped to Tk 36.87 from Tk 19.87.
Revenue rose 10 per cent year-on-year to Tk 5.68 billion, mainly due to strong Eid festive sales, supported by new product assortments and positive customer response to updated designs, the company said in its earnings note.
The company's cash generation also improved sharply. Net operating cash flow per share climbed to Tk 61.45 from Tk 29.46 a year earlier, reflecting stronger sales turnover and more efficient working capital management.
According to the company, the improvement in cash flow was driven by higher profitability, a significant reduction in inventory and better management of trade and other payables.
The net asset value, which refers to the excess of total assets over total liabilities, also increased to Tk 215.08 per share, from Tk 188.72 in the same period last year, indicating a stronger balance sheet position.
Meanwhile, Bata Shoe turned around strongly in the second quarter (Q2) as it reported a profit of Tk 133 million for April-June period, compared with a loss of Tk 96.5 million in the corresponding quarter of 2025.
On Monday, the company's shares rose 0.91 per cent to close at Tk 898.60 on the Dhaka Stock Exchange (DSE).
Annual performance
The company's annual profit plunged 96 per cent year-on-year to Tk 12 million in 2025 amid operational disruptions and weak demand.
The sharp earnings decline underscores a difficult year, with the company slipping into losses in the second, third, and fourth quarters of 2025.
However, a strong first quarter of 2025, when the company earned Tk 368 million, helped it narrowly stay in the green for the full year, ending with a modest net profit.
Despite the earnings slump, the board of the company had declared a 105 per cent final cash dividend, in addition to a 143 per cent interim dividend, bringing the total payout to 248 per cent for 2025. This is lower than the 445 per cent cash dividend distributed in 2024.
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