Bata slips deeper into the red in Q3 after protest-linked vandalism

Despite higher sales, Bata Shoe Company saw its losses escalate 153 per cent year-on-year to Tk 144 million in the third quarter through September this year, having to navigate "exceptional circumstances."

"Several retail locations were affected by acts of vandalism, which disrupted operations and had a material impact on financial performance," said the company in its earnings note.

In April 2025, a number of Bata shoe stores were vandalised and looted during pro-Palestine protests, apparently triggered by false claims that Bata was an Israeli company.

The outlets were located in Sylhet, Bogra, and Cox's Bazar. Bata later issued a statement clarifying that it is a Czech-founded company with no political ties to the conflict.

Bata reported a loss of Tk 10.56 per share in the July-September quarter this year, up from Tk 9.34 per share in the same quarter last year.

It had suffered losses in the July-September quarter last year due to a loss of working days amid unrest and political changeover that impacted retail operations. High inflation also squeezed demand at that time.

The company's sales grew 19 per cent year-on-year to Tk 1.84 billion in the third quarter this year amid easing inflationary pressure.

Despite the losses, the board of directors declared a 143 per cent interim cash dividend to be paid from retained earnings. Investors will get Tk 14.3 per share. The record date is November 18.

Currently, the total number of shares of the company is 13.68 million. So, the company will pay Tk 195.6 million in interim cash dividends. Its retained earnings stood at Tk 2.73 billion as of September this year.

Bata, however, remained in positive territory in terms of profitability in the nine months through September this year, as the first-quarter profit offset losses in the following two quarters.

The multinational shoe manufacturer had faced drastic losses in 2020 for the first time in its six decades of operations in Bangladesh, when its annual sales dropped by 41 per cent due to a nationwide lockdown.

Again in 2021, recurring Covid-19 waves ate into the company's major sales as the two Eid festivals that contribute to more than one-third of Bata's annual sales were lost to lockdowns.

Since there were no restrictions in 2022 and 2023, the company was able to conduct full business, including during Eid festivals.

Still, profit growth was held back in 2024 due to lower sales amid unrest and political changeover.

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