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Bata Shoe's profit escalates on high domestic demand

FE REPORT | May 16, 2023 00:00:00

Higher demand in the winter season and at the beginning of academic year boosted Bata Shoe's revenue by 14.48 per cent year-on-year to Tk 2.44 billion in January-March.

The operating profit, however, jumped 80 per cent to Tk 236.09 million during the time, compared to the same period of the previous year, and net profit surged almost 100 per cent.

The bottom line growth was driven by finance income, which advanced 112 per cent to Tk 15.33 million on higher income on short-term deposits.

Company secretary Md. Hashim Reza said higher demand for Bata products at the start of the year led to the revenue growth.

"14 per cent growth in revenue is huge for the company."

The entire revenue was generated from sales of shoes, hosiery and accessories in the local market in January-March. There was no export in the quarter.

On the other hand, Bata Shoe had reported revenue of Tk 1.14 million from exports for the first quarter last year.

Mr Reza said the business had focused on the domestic market this year.

"Our company has overcome post-Covid impacts."

The company reported loss for July-September 2022 after making profits in the previous quarters. It finally reported a robust growth in profit for the year 2022 after a year in the red in 2021.

It reported earnings per share of Tk 29.98 for 2022 against a loss of Tk 5.01 per share for 2021.

The operating cash flow declined significantly in January-March this year, compared to the same quarter of the previous year.

The net operating cash flow per share (NOCFPS) was Tk. 1.73 for January-March 2023 as against Tk. 10.23 for January-March 2022.

"NOCFPS decreased compared to last year because of various payments to suppliers and contractors for goods and services during the period," reads a disclosure.

The company's shares traded at between Tk 957 and Tk 1,018.4 in the last 11 sessions on the Dhaka Stock Exchange.

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