Apex Footwear's profit dips despite robust revenue growth in Q1
According to Q1 financials, its finance expenses significantly soared by 48.38% to Tk42.13 crore, which was Tk28.52 crore in Q1 of FY25.
Apex Footwear, one of the country's largest footwear exporters, has reported an 11.66% dip in net profit for the first quarter (Q1) of the current fiscal year 2025-26, despite achieving a 14.43% growth in revenue.
The company generated a revenue of Tk484 crore during the July-September quarter of FY26, a significant rise from Tk423 crore recorded in the same quarter of FY25. However, net profit fell to Tk2.50 crore, resulting in an earnings per share (EPS) of Tk1.59, down from Tk2.82 crore and an EPS of Tk1.80 a year earlier.
The primary factors contributing to the profit decline were soaring finance costs and increased tax expenses.
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According to Q1 financials, its finance expenses significantly soared by 48.38% to Tk42.13 crore, which was Tk28.52 crore in Q1 of FY25.
As per its quarterly financials, its net operating cash flow per share significantly surged to Tk72.58, and net asset value per share to TK438.27, which were Tk39.20 and Tk436.68, respectively, in the same time of the previous fiscal year.
As per its report, the company owns Tk1,491 crore as short-term loans. At the end of June 2025, the loan amount was Tk1,485 crore.
Regarding the profit declines, Apex Footwear said during Q1 of 2025-26 the company's basic EPS decreased by Tk0.21 only compared to the same period of last year and the main reason behind this decrease in EPS for the increase in income tax expenses and provision, net income tax expenses and provision in Q1 of 2025-26 was 63.36% against profit before tax which was 41.98% same period of last year, tax provision against domestic sales increased by 40% for change in rate through Finance Act.
Apex Footwear has recommended a 50% dividend for its shareholders for the fiscal year FY25, while its net profit fell by 23%.
As per its financials, its net profit fell to Tk13.55 crore in FY25, compared to Tk17.64 crore in the previous year.
The earnings per share dropped to Tk8.62 from Tk11.22 a year ago.
During the January-June 2025 period alone, profit plunged 42% year-on-year to Tk7.53 crore, despite the company enjoying robust revenue growth in earlier quarters.
