Bata Shoe Company (Bangladesh), for the first time in its business history, has incurred a huge loss for the year ended on December 31, 2020, as sales collapsed amid the coronavirus pandemic.
The multinational footwear maker's net loss stood at Tk 1.32 billion for the year ended on December 31, 2020 against a profit of Tk 494 million in the previous year.
"Bata Shoe Bangladesh has been going through a crisis in the overall business in 2020, which has pushed the company's earnings down," the company said in a filing with the Dhaka Stock Exchange (DSE) on Wednesday.
The company has reported a loss of Tk 96.94 per share for the year ended on December 31, 2020 against a profit of Tk 36.11 per share for the previous year.
The earnings from the company's business saw a drastic fall due to the loss of retail business during major festivals in 2020 such as Eid-ul-Fitr, Eid-ul-Azha, Puja and Pahela Boishakh amid virus-induced countrywide lockdown, said the company.
"About 25 per cent to 30 per cent Bata Shoe's yearly business comes during these festivals," the company said.
An estimated 77 per cent of the rural business leaders such as dealers and wholesalers have been impacted due to the Covid-19 outbreak, which led to the losses, said the company.
The loss of their business resulted in the company's business going down by 41 per cent for the year ended on December, 31, 2020. This is the first time in the history of the company that it took such a huge plunge.
However, the board of directors of Bata Shoe has recommended a 25 per cent cash dividend from the retained earnings for the year ended on December 31, 2020.
This is the lowest dividend declaration by the company in its history. In the previous year, it disbursed a 125 per cent cash dividend.
The final approval of the dividend will come during the annual general meeting (AGM) scheduled for August 12 at 11:00 am. The record date is on June 22.
The company has also reported net asset value (NAV) per share of Tk 267.94 and net operating cash flow per share (NOCFPS) of Tk 2.26 for the year ended on December 31, 2020 as against Tk 364.65 and Tk 68.66 respectively for the same period of the previous year.
Due to the second wave of Covid-19, the company did not come back to profit in the first quarter (Q1) ended on March 31, 2021
The company has reported a loss of Tk 3.58 per share for January-March 2021 quarter against a profit of Tk 2.07 for January-March, 2020.
Shares of Bata Shoe, listed on the DSE in 1985, closed at Tk 693.20 on Wednesday, remaining unchanged over the previous day.
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