Apex Footwear gains 33pc higher profit in Q2, on rise in exports, cost cut

Apex Footwear experienced a significant year-on-year growth in profit in the first six months (H1) and the second quarter of FY25, riding on increased revenue earnings.

Its other income and operating efficiency also facilitated the profit growth.

The country's leading shoemaker and exporter has reported a 33 per cent year-on-year growth in profit to Tk 32 million in the second quarter through December last year of FY25.

During the same period, revenue experienced a 28 per cent escalation year-on-year to Tk 4.06 billion.

Md. Omar Faruque, company secretary of Apex Footwear, said a high growth in export earnings played a pivotal role behind the revenue growth in Q2 and H1, FY25, compared to the same periods the year before.

Revenue earnings from the domestic market remained almost static in Q1 and Q2, compared to the same quarter a year ago.

"The revenue earnings in the local market could be better if there were no floods in the [first] quarter," said Mr. Faruque.

The company's operating efficiency also facilitated the profit growth in Q2, FY25. Operating expenditure fell 6.32 per cent year-on-year to Tk 817.13 million in the second quarter of FY25.

Moreover, other income soared 36 times in Q2, compared to the same quarter of the previous year.

Apex Footwear reported other income of Tk 3.47 million in the second quarter of FY25, increased from only Tk 94,328 in the same quarter of the previous year.

The EPS (earnings per share) stood at Tk 2.03 in Q2, FY25, up from Tk 1.53 in the same quarter of the previous year.

For the six months through December last year, the company reported a 30 per cent growth year-on-year in profit to Tk 60.26 million, supported again by revenue growth and other income.

Revenue income advanced 24 per cent year-on-year to Tk 8.29 billion in H1, FY25.

The other income jumped 18 times in H1, FY25, compared to the same period of the previous year.

The EPS rose to Tk 3.83 in H1, FY25 from Tk 2.95 in the same period of the previous year.

Apex Footwear, an 'A' category company, earned a profit of Tk 176.3 million in FY24, the highest in nine years, amid macro-economic challenges and high inflation.

The company has been witnessing an upward trend in profit since FY20. That year it made a net profit of Tk 63.23 million. Yearly profit gradually rose to Tk 167.14 million in FY23.

The company distributed a 35 per cent cash dividend and issued a 10 per cent stock dividend to shareholders for FY24.

The stock dividend was issued with a view to utilising its retained profit as paid-up capital for improving the company's capital adequacy.

The same amounts of cash (35 per cent) and stock dividend (10 per cent) had been disbursed for FY22 and FY23.

Apex Footwear Ltd was established in 1990 as an export-oriented factory. In 1993, the company was listed on the Dhaka Stock Exchange and it invested in backward linkages. By 1996, Apex established an effluent treatment plant.

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