Apex Footwear posts lower revenue, profit in Jul-Sep

Apex Footwear – a leading shoemaking brand in Bangladesh – has reported a 17% year-on-year decline in revenue and a 29% decrease in net profit for the first quarter. 

In the July-September quarter of fiscal 2023-24, its revenue and net profit dropped to Tk351 crore and Tk2.23 crore, respectively. Earnings per share (EPS) stood at Tk1.72, down from Tk2.43 a year ago.

Dilip Kajuri, deputy managing director at Apex Footwear, attributed the revenue fall to a substantial drop in exports, with a 50% decrease in quantity and a 40% decline in export revenue compared to the previous fiscal year. 

He noted that local market sales remained consistent, but rising raw material import costs due to dollar appreciation impacted the company.

Kajuri explained that high inflation led to a decline in purchasing capacity of people, resulting in a shift towards lower-priced products. 

Despite facing economic challenges, Apex Footwear achieved record sales in FY23, driven by two Eid-ul-Azha and one Eid-ul-Fitr festivals between July 2022 and June 2023. Typically, two Eid festivals are celebrated annually.

In FY23, the company's revenue increased to Tk1,653.59 crore, and profit reached Tk16.71 crore. Export revenue rose by 35% to Tk713 crore, and local sales increased by 22% to Tk939 crore, with a Tk171 crore increase in local market sales and Tk185 crore in income from shoe exports.

For FY23, Apex Footwear declared a 45% dividend for shareholders, including 35% cash and 10% stock. 

Established in 1990, the company began its journey inspired by the leather business, evolving into a shoemaker with units dedicated to both local and export markets. 

Apex initiated its retail chain in 1997, catering to the footwear needs of Bangladeshi consumers. The company was listed on both stock exchanges in 1993.