Bata Shoe slips into Tk24cr loss in Apr-Sep despite higher sales
Although revenue increases, net profit adversely affected by exceptional circumstances, it says
Bata Shoe Company (Bangladesh) Limited, the multinational footwear manufacturer, has reported losses for two consecutive quarters, as it continues to struggle with operational disruptions and rising costs, despite higher sales.
According to the company's financial statement, Bata incurred a loss of Tk14.44 crore in the July-September quarter of 2025, widening from Tk9.64 crore in the preceding quarter. Cumulatively, the company's losses in the last two quarters stood at Tk24 crore.
Despite the losses, the board of directors has declared a generous 143% interim cash dividend for shareholders, based on the company's financial performance for the January-September period. To facilitate the payout, the record date has been set for 18 November. The company said the dividend will be funded from both its quarterly and retained earnings.
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As of the end of September, Bata's retained earnings stood at Tk274.91 crore, while the total interim dividend payment will amount to Tk19.56 crore.
Despite the interim dividend announcement, its share price slightly fell by 0.62% to close at Tk869 on the Dhaka Stock Exchange (DSE) today.
In the first quarter of this year, Bata managed to post a profit of Tk36.83 crore, helping it maintain an overall net profit of Tk12.74 crore at the end of the first nine months of 2025. However, its earnings per share (EPS) dropped sharply to Tk9.32, down 48% from Tk17.81 a year earlier.
Revenue for the July-September quarter rose by 20% year-on-year to Tk183.73 crore, while total revenue for the first nine months reached Tk700 crore, slightly higher than the corresponding period in 2024.
In a statement, the company said that although revenue increased slightly from last year, net profit was adversely affected by exceptional circumstances.
"Several retail locations were affected by acts of vandalism, which disrupted operations and had a material impact on financial performance," Bata said.
It added, "These events, while unprecedented, also demonstrated the company's resilience and strong stakeholder relationships."
Bata began operations in Bangladesh in 1962 and currently operates two manufacturing units in Tongi and Dhamrai on the outskirts of the capital, with a combined daily production capacity of 1.6 lakh pairs of shoes. According to its website, the company sells around three crore pairs of shoes annually.
Bata Bangladesh is a subsidiary of Bafin (Nederland) BV, based in the Netherlands, which owns 70% of the company's shares. Bafin is one of the key operating companies under the global Bata Shoe Organisation, which manages the brand's worldwide operations.
