Apex Tannery share slumps 12% following no dividend announcement
In FY24, it had paid a 5% cash dividend each for two preceding years despite suffering losses
Apex Tannery Limited has declared no dividend in FY25 for the first time since 2000 as it suffered mounting high losses. Following the announcement through the Dhaka Stock Exchange (DSE) today (15 October), its share price dropped by 12.01% to close at Tk60.10.
Under securities regulations, circuit breakers do not apply to share price changes on the first day of a dividend declaration.
In FY24, it had paid a 5% cash dividend each for two preceding years despite losses.
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According to the disclosure, the company has scheduled the annual general meeting (AGM) for 30 December to approve the dividend and audited financial statement. The AGM will be held in a hybrid setup of both digital and physical platforms at the company's factory in the BSCIC Tannery Industrial Estate, Savar. The record date is set for 10 November.
In the 2024-25 fiscal year, Apex Tannery incurred a loss of Tk22.28 crore, which was 76% higher from the previous year. During the last fiscal year, its loss per share stood at Tk14.62, which was Tk8.31 a year ago.
At the end of 30 June 2025, its net asset value per share was Tk30.19 and the net operating cash flow per share of Tk2.58.
The company said in its statement that the net loss and negative EPS in the last fiscal year was mainly due to a reduction in sales volume. In addition, significant increase of finance expenses causes net loss.
Apex Footwear's Managing Director Syed Nasim Manzur also acts as Chairman and acting managing director of Apex Tannery.
The company said in the annual report for FY24, the tannery industry's outlook is not good due mainly to change in fashion from leather goods to synthetic.
Also, environmental compliance is an important factor for export-oriented industries. The compliance of the industry is not accepted by the foreign customers due to the non-functioning of the CETP (Central Effluent Treatment Plant) and the LWG Certification. However, if the problem of CETP is solved, sales may improve, according to the annual report.
The company further said, Apex Tannery secured the government permission to build its own treatment plant, subject to considering some conditions and the company are working on it.
Apex Tannery was listed on the Dhaka bourse in 1985 and currently traded under the B category.
Out of its total shares, sponsors and directors hold 34.82% shares, while institutional investors have 30.38% shares, and the remaining 34.80% shares are owned by the general shareholders.
