Fortune Shoes recommends 5 paisa dividend per share for FY25
According to the company, the steep decline in profitability resulted from rising financial and operational pressures
Fortune Shoes Limited has recommended a 0.50% cash dividend, equivalent to 5 paisa per share, for general shareholders, excluding sponsors and directors, for the financial year 2024–25 (FY25). The decision, approved at the company's board meeting on Monday, marks a lower payout compared to the previous fiscal year, when a 1% cash dividend was distributed.
Despite the modest dividend, the company's share price rallied strongly in early trading today (25 November) at the Dhaka Stock Exchange (DSE). Fortune Shoes shares surged by 16% during the first half of the session as investors reacted to the announcement. However, the momentum tapered off later in the day, and the stock closed at Tk13.80, up 4.55% from the previous close.
The annual general meeting (AGM) to approve the dividend, audited financials, and other agenda items has been scheduled for 30 December. The record date for shareholders eligible to attend has been set for 15 December.
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Fortune Shoes reported earnings per share (EPS) of Tk0.11 for FY25, a significant drop from Tk0.50 recorded in the previous year. The company's net asset value (NAV) per share stood at Tk14.70 at the end of the fiscal year.
According to the company, the steep decline in profitability resulted from rising financial and operational pressures. Manufacturing costs and finance costs escalated due to major external factors, substantially squeezing margins.
The company further reported reduced income from non-core operations, heightened customer claims, and losses incurred on several export orders, factors that collectively dragged down earnings during the year.
Established in March 2010, Fortune Shoes began commercial operations in September 2011 as a fully export-oriented manufacturer. It produces a wide range of footwear and exports to foreign markets. The company sources essential raw materials from China, Taiwan, and Hong Kong.
As of 31 October 2025, sponsors and directors held a combined 30.93% stake, institutional investors accounted for 16.47%, and general shareholders owned 52.60% of the company.
