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Fortune Shoes' profit nosedived to Tk 19 million in FY25 as non-operating income shrank significantly.
The shoe manufacturer's profit tumbled 77 per cent year-on-year in FY25, according to a stock exchange filing on Tuesday.
Fortune Shoes, based mainly in the southern division of Barishal, reported earnings per share of Tk 0.11 for the year to June this year, down from Tk 0.50 the year before.
The company said higher manufacturing costs, increased finance expenses, along with reduced income beyond operations and losses in certain export orders, impacted the profit growth.
Due to lower profit, the company declared 0.50 per cent cash dividends, equivalent to 5 paisa per share, only for general shareholders for FY25.
Previously, the shoe manufacturer earned more money from its stock market investments than its core business. The business dynamism changed rapidly after widespread allegations of stock price manipulation of Fortune Shoes.
The net operating cash flow per share, a measure of a company's ability to generate cash from its operations, worsened to Tk 0.42 in the negative per share for FY25 from Tk 0.36 in the negative for the previous year.
The net asset value, which refers to the excess of total assets over total liabilities, reached Tk 14.70 per share as of June this year, up from Tk 13.58 in June last year.
To approve the dividends and audited financial statements, the company has scheduled the annual general meeting for December 30 and the record date for December 15.
Fortune Shoes raised Tk 220 million from the capital market under the fixed price method in 2016.
There was also an allegation that ex-revenue officer Matiur Rahman received placement shares of Fortune Shoes at lower than face value.
The company's stock price peaked at more than Tk 135 three years back, which came down to Tk 13.80 on Tuesday.
The Bangladesh Securities and Exchange Commission (BSEC) fined those who had been found involved in artificial rallies of Fortune Shoes on the bourses several times.
Recently, the securities regulator decided to forward its investigation report on the involvement of Investment Corporation of Bangladesh (ICB) officials to the Anti-Corruption Commission (ACC) and the finance ministry for necessary actions.
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