Apex Footwear's profit drops 60% despite higher sales
Apex Footwear reported a 59.6% year-on-year decline in its earnings per share (EPS) for the January-March quarter despite a continuation of sales growth.
It was due to the higher costs of production, marketing, selling, and distribution, as well as the finance costs, according to the top tier footwear maker's latest financial statement.
The company only managed to reduce its administration costs for the third quarter of the current fiscal year, which was not enough to offset surges in other major costs.
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Its revenue increased to Tk361 crore from Tk284 crore a year ago, and the higher costs dragged its net profit down to Tk1.26 crore from Tk3.1 crore.
The publicly traded company's EPS came down to Tk0.97 from Tk2.40 for the three months, while for the first nine months of the fiscal year, it was slightly up at Tk6.19 compared to Tk6.08 as its profits for the previous six months were better.
At the end of March, the company's net asset value per share stood at Tk232.96 while its shares, which have a face value of Tk10 apiece, closed 2.73% lower at Tk370.10 on Thursday.
As of 31 March 2023, the sponsors and directors jointly held 32.65%, institutions 19.46%, and the general public 47.89% of shares in the company.
