The Financial Express

Bata Shoe revenue dips

Fallout of Covid-19

| Updated: July 30, 2020 10:45:33

Bata Shoe revenue dips

Bata Shoe Company's revenue plunged drastically by 85 per cent year-on-year in April-June, 2020 quarter due to lower sales amid Covid-19 pandemic.

The multinational company's revenue stood at only Tk 412 million for April-June, 2020 quarter which was Tk 2.82 billion in the same quarter last year.

The company has reported a loss of Tk 735 million in April-June, 2020 quarter, and loss per share was Tk 53.74.

In the same period of the previous year, the Bata Shoe witnessed a Tk 217 million in net profit, and earnings per share were Tk 15.85.

In six months for January-June, 2020, the company's EPS was Tk 51.67 in negative for January-June 2020 as against Tk 19.11 for January-June 2019.

The Bata Shoe has informed that generally, around 25 per cent of business comes during Eid festival and at the same time high value products are sold during this period to generate a high margin.

"These opportunities are missed now due to the pandemic of Covid-19," said the company in a disclosure on Tuesday.

For that reason, the company achieved only 15 per cent of revenue against last year same period which affected negatively on gross profit as well as profit before tax and EPS.

The net operating cash flow per share (NOCFPS) was also negative Tk 5.85 for January-June 2020 as against Tk 43.48 for January-June 2019.

The net asset value (NAV) per share was Tk 312.98 as on June 30, 2020 and Tk 355.72 as on June 30, 2019.

From the beginning of the year 2020, company has planned for the production schedule keeping in view of Eid business. This is being considered that it will be significant sales for the company's point of view, said the Bata Shoe.

Therefore, company started to build the stock three months earlier. Due to Covid-19, the business has been affected and cash-generating cycle hampered resulting in a negative impact on the net operating cash flow per share (NOCFPS), it added.

Bata Shoe also recommended 'no' final dividend for the year ended on December 31, 2019 due to the worldwide as well as the countrywide shutdown amid Covid-19 outbreak.

However, a 125 per cent cash dividend which is already been paid as the interim dividend is the final dividend for the year ended on December 31, 2019, it said.

In 2018, the company disbursed 345 per cent cash dividend.

Listed in 1985, each share of the Bata Shoe closed at Tk 593.20 on Tuesday, remaining unchanged over the previous day.

Its share traded between Tk 618 and Tk 998.80 in the last one year.

The company's paid-up capital is Tk 136.80 million, authorised capital is Tk 200 million and the total number of securities is 13.68 million.

Sponsor-directors own 70 per cent stake in the company while the institutional investors own 18.98 per cent, foreign investors 1.94 per cent and general public 9.08 per cent as on June 30, 2020, the DSE data showed.


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