Bata Shoe, a multinational company in the country, is weathering the pandemic shock as its revenues increase, but the company has yet to return to profit.
The company, which exports part of its products, manufactures shoe and hosiery accessories with its main turnover coming from the footwear segment.
Despite a 57% increase in revenue, Bata Shoe suffered a loss for the period from January to September of this year.
During the period, its gross profit grew 144% year-on-year, but it suffered a loss of Tk 14.76 crore.
At the same time as the previous year, its net loss was Tk 122.06 crore due to declining sales in the context of the Covid-19 pandemic and the lockdown.
As a result, due to bulk merchandise sales as revenue increased, its net loss significantly decreased during this period from January to September of the previous year. Based on its nine-month financial statements, the company recommended 75% interim cash dividends to shareholders.
Due to the nationwide lockdown for the pandemic over the past year, Bata Shoe had suffered a heavy blow from declining sales, which negatively impacted its profits. As a result, the company suffered losses in 2020.
According to its financial data, revenue increased from Tk 344.77 crore to Tk 543.71 crore due to increased sales and clearance of old goods by offering wholesale discount to customers.
After cost of goods sold, its gross profit rose to Tk 189.94 crore from Tk 77.84 crore in the same period as the previous year.
Paying administration, sales and distribution fees, its operating profit was Tk 1.38 crore, a loss of Tk 107.55 crore from January to September 2020.
From July to September, its revenues increased slightly and the net losses decreased compared to the same period of the previous year.
During this period, his income was Tk 142.35 crore, or Tk 139.84 crore, and the net loss was Tk 11.43 crore, or Tk 51.37 crore for the same period on last year.
Bata Shoe was incorporated in Bangladesh in 1972 and its head office is located in Tongi, Gazipur.
The Company is one of the operating companies of the global Bata Shoe Organization (BSO) and a subsidiary of Bafin (Nederland) BV in the Netherlands holding 70% of the shares of the Company.