Bata Bangladesh stages massive turnaround with 238% profit surge in Q2

Inforgraphics: TBS

Bata Shoe Company (Bangladesh) Ltd has reported a stellar financial performance for the second quarter of 2026, navigating a complex retail landscape to deliver a staggering 238% year-on-year growth in net profit. 

Despite persistent macroeconomic challenges, including high inflation and reduced operating hours for retail outlets, the company successfully transitioned from a loss-making position last year to a robust profitable one this year, according to the company's press release.

According to the company's unaudited financial statements for the April-June 2026 quarter, approved during a board of directors meeting today (27 July), the multinational footwear major recorded a total revenue of Tk188.98 crore. This represents a healthy 19% increase compared to the Tk158.8 crore earned during the same period in 2025. 

The most significant highlight, however, was the bottom-line turnaround. While the company had incurred a net loss of Tk9.64 crore in the second quarter of the previous year, it posted a net profit of Tk12.6 crore in the recently concluded quarter.

The company's half-yearly performance also reflected a strong upward trajectory. For the first six months of 2026 (January-June), Bata reported a consolidated revenue of Tk568.68 crore, marking a 10% growth on a year-on-year basis. The net profit after tax for the first half reached Tk50.4 crore, representing an 86% increase over the Tk27.2 crore recorded during the first half of 2025. Consequently, the earnings per share (EPS) for the six-month period improved significantly to Tk36.87, up from Tk19.87 in the corresponding period of the previous year.

Bata Bangladesh attributed this sustained growth momentum to the focused execution of business strategies and effective management of operating expenses. 

The management noted that the business demonstrated remarkable resilience despite global geopolitical uncertainties, seasonal market volatility, and a general slowdown in domestic economic activity. A key factor in this success was the timing of the major religious festivals. With Eid-ul-Fitr falling in the first quarter and Eid-ul-Adha in the second, the company was able to capitalise on heightened consumer demand through integrated marketing campaigns and the timely launch of several new product collections.

These commercial initiatives, paired with disciplined cost management and operational efficiencies, served as the primary drivers of profitability throughout the first half of the year, said the company in its statement. 

However, the path to recovery was not without hurdles. The company pointed out that persistent food inflation, which exceeded 10% during the period, continued to squeeze consumer purchasing power and restricted discretionary spending on non-essential items like high-end footwear. Additionally, the government-imposed retail closing hour of 7pm, introduced as an energy conservation measure, reduced the effective trading time for retail outlets across the country, limiting potential sales opportunities during peak evening hours.

Despite these constraints, the company expressed optimism about its long-term prospects. The management reaffirmed its commitment to a strategy centred on innovation and operational excellence to create value for both customers and shareholders. 

Bata has been a household name in Bangladesh since 1962, operating as a subsidiary of Bafin (Nederland) BV, which holds a 70% stake. With two manufacturing units in Tongi and Dhamrai producing 1,60,000 pairs of shoes daily and selling nearly three crore pairs annually, the company remains a cornerstone of the local footwear industry. 

Bata's share price rose by 0.91% to close at Tk898.60 on the Dhaka Stock Exchange yesterday, bringing its total market capitalisation to Tk1,229.28 crore.