Despite revenue jump, Bata Shoe still in loss
From January to September this year its gross profit rose by 144% year-on-year but it incurred a loss of Tk14.76 crore.
Bata Shoe, a multinational company in the country, is overcoming the pandemic shock as its revenue increased, but the company is yet to return to profit.
The company, which exports some of its goods, manufactures shoe and hosiery accessories with Its main revenue coming from the shoe segment.
Despite a 57% jump in revenue, Bata Shoe incurred a loss for the January to September period this year.
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During the period, its gross profit rose by 144% year-on-year but it incurred a loss of Tk14.76 crore.
At the same time as the previous year, its net loss was Tk122.06 crore due to lower sales amid the Covid-19 pandemic and lockdown.
As a result, due to sales of goods in bulk as revenues rose, its net loss significantly declined in this period from January to September of the previous year. Based on its nine-month financials, the company has recommended 75% interim cash dividends for the shareholders.
Due to countrywide lockdown for the pandemic in the last year, Bata Shoe had witnessed a blow due to lower sales, which badly impacted its profit. As a result, the company fell into losses in 2020.
According to its financials, the revenue increased to Tk543.71 crore from Tk344.77 crore due to a boost in sales and clearance of aged merchandise by offering a bulk discount to customers.
After the cost of goods sold, its gross profit rose to Tk189.94 crore from Tk77.84 crore in the same period as the previous year.
Paying administration, selling, and distribution expenses, its operating profit stood at Tk1.38 crore, which was a Tk107.55 crore loss for January to September of 2020.
In the July to September period, its revenue slightly increased and net losses decreased over the same time of the previous year.
In this period, its revenue stood at Tk142.35 crore, which was Tk139.84 crore and net loss stood at Tk11.43 crore, which was Tk51.37 crore for the same time in the previous year.
Bata Shoe was incorporated in Bangladesh in 1972 and its registered office is situated at Tongi, Gazipur.
The Company is one of the operating companies of the worldwide Bata Shoe Organization (BSO) and a subsidiary of Bafin (Nederland) BV in the Netherlands holding 70% of the Company's shares.
