Fortune Shoes posts loss in Jul–Sep quarter of FY26
The footwear maker reported a loss per share of Tk0.31 for the July–September 2025 quarter, reversing from a profit of Tk0.11 per share in the same period a year earlier.
Fortune Shoes Limited slipped into losses in the first quarter of FY26, reflecting mounting cost pressures and ongoing governance concerns, according to its latest financial disclosure filed with the Dhaka Stock Exchange (DSE) on Sunday.
The footwear maker reported a loss per share of Tk0.31 for the July–September 2025 quarter, reversing from a profit of Tk0.11 per share in the same period a year earlier.
Following the disclosure, the company's share price fell 1.47% to close at Tk13.40 on the DSE.
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The latest quarterly loss follows a difficult FY25, during which the company's profitability weakened amid rising manufacturing expenses and higher finance costs driven by elevated interest rates.
Earlier disclosures showed that earnings for the year ended 30 June 2025 declined as material costs surged, customer claims increased, and losses were incurred on several export orders. Reduced contributions from other income sources also weighed on overall profitability.
Despite the earnings pressure, Fortune Shoes recommended a 0.50% cash dividend for FY25, applicable only to general shareholders, excluding sponsors and directors.
Meanwhile, the company's auditors have raised serious concerns over financial management and regulatory compliance. G Kibria & Co, Chartered Accountants, reported major documentation gaps involving approximately Tk76 crore withdrawn in cash during the 2024–25 financial year.
According to the audit report, the funds were withdrawn from a regular account with Islami Bank through 207 cheques, but the company failed to provide essential supporting records, including cash and bank books, cheque counterfoils, vouchers, invoices, or delivery challans.
The auditors also highlighted irregularities in dividend distribution, noting that although dividends for the 2022, 2023 and 2024 financial years were approved, the full amounts were not transferred to designated dividend accounts. As of 30 June 2025, unpaid dividends stood at Tk10.05 crore a violation of applicable laws and regulations.
