Apex Footwear’s revenue drops amid Covid-19 second wave
In the July-September period last year, Apex’s revenue jumped by 298% compared to that in the previous quarter of the same year
The revenue of Apex Footwear dropped 36% in the October to December period of 2020, when the world was shaken by the second wave of the coronavirus pandemic, compared to its revenue in the previous quarter of the same year.
But the company made a huge profit when the general holiday period was over and people were free to go out shopping after a long time.
In the July-September period last year, Apex's revenue jumped by 298% compared to that in the previous quarter of the same year.
Md Omar Faruque, company secretary of Apex Footwear, told The Business Standard, "The novel coronavirus crisis has changed the way people spend money. Although people's purchasing power has not decreased, they are not spending extra money on anything other than the daily necessities."
"We have to wait to overcome the current situation and get a sales growth," he added.
Asked about the export situation, he said, "Our export has been witnessing a decline for the last several years as the demand for the leather products has been falling continuously across the globe."
In the post-shutdown period, the company posted over Tk398 crore in sales, which was only Tk100 crore in the April-June quarter when a 66-day countrywide shutdown over the Covid-19 pandemic was in effect.
But in the second quarter of this fiscal year, the company's revenue stood at only Tk253.37 crore and its net profit fell by 62% to Tk1.79 crore.
The company secretary said recently people have been buying only low-priced footwear. That is why the company's profit margin has decreased.
In 2019, the company invested Tk100 crore to increase its production for the local market.
The company secretary also said they have been trying to complete the project in due time.
Apex Footwear started its journey more than three decades ago on 4 January, 1990.
It started its retail chain in 1997 to fulfill the footwear needs of Bangladeshi consumers.
The company was listed on both the stock exchanges in 1993.
Sponsors and directors jointly own 25.48% of its shares, while institutional investors own 37.75%, foreign investors 0.10% and general investors own the rest.
The last trading price of each share of the company at the Dhaka Stock Exchange was Tk219.30 on Tuesday.
