Bata Shoe posts record revenue in H1 2023
The multinational footwear manufacturer attributed the record-breaking revenue to increased consumer spending during Eid festivals
Despite inflationary pressure in the country's economy, Bata Shoe Company (Bangladesh) Limited reported the highest-ever revenue in its history for the first half of this year.
The multinational footwear manufacturer attributed the record-breaking revenue to increased consumer spending during Eid festivals when people traditionally buy new clothes and shoes.
The country's branded footwear market leader earned Tk566.64 crore by selling shoes between January and June, posting a net profit of Tk43.87 crore, according to a stock exchange filing.
At the end of the first half, its earnings per share stood at Tk32.07, which was 31% higher than last year.
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An official at the company stated that around 35% of Bata Bangladesh's yearly sales revenue comes from major festivals like Eid-ul-Fitr, Eid-ul-Adha, Puja, and Pahela Baishakh.
Despite the high inflation reducing people's purchasing power, they still bought new shoes to celebrate Eid festivals. The company's various campaigns to increase sales during this time also contributed to achieving the record revenue.
Bata Bangladesh faced significant losses in 2020 due to a nationwide shutdown and prolonged homestays of the masses, but it bounced back in 2021, despite recurring Covid-19 waves affecting sales during the Eid festivals.
In Bangladesh, Bata started its operations in 1962 and currently runs two manufacturing facilities – one in Tongi and the other in Dhamrai – on the outskirts of the capital, with a production capacity of 1.60 lakh pairs of shoes daily.
Annual shoe sales currently stand at about three crore pairs, according to the company's website. It is a subsidiary of Bafin (Nederland) BV in the Netherlands, which holds 70% of the company's shares and is one of the operating companies of the worldwide Bata Shoe Organization.
Despite the positive outcome in the first half, its shares fell by 0.24% and closed at Tk999.50 each on Tuesday at the DSE.
However, it had paid a 365% cash dividend in 2022, which was the highest payout to the shareholders in its history.
