Apex Tannery Ltd – a 100% export-oriented leather processing and finishing company – has returned to profit in fiscal 2020-21 riding on an increase in sales and thrift in sales and marketing expenses.
In a meeting on Saturday, the board of directors has recommended a 10% cash dividend for its shareholders for FY21. It paid 12% cash dividends in the previous fiscal year.
Officials at the company did not provide information on its sales.
The annual production capacity of Apex Tannery, which produces high-quality leather for exports, is 32 million square feet of finished goat and cow leather.
Due to the pandemic, sales decreased by 38% in fiscal 2019-20 compared to the previous year due to lower demand in the export destinations and it incurred losses.
After the blow in FY20, Apex Tannery posted a profit of Tk52 lakh while the earnings per share (EPS) stood at Tk0.34.
In its disclosures published on stock exchanges on Monday, the company said both net profit and earnings per share have increased compared to last year, due mainly to an increase in sales volume and reduction in selling and marketing expenses.
It also said the net operating cash flow per share increased compared to last year because of a decrease in payment to suppliers and other businesses.
A year ago in FY20, the company had incurred a loss of Tk1.81 crore due to the outbreak of the Covid-19 pandemic and the loss per share was Tk1.19.
In its audited financial statement for FY20, the company said, due to the pandemic, exports declined due to lower demand in the international market.
As a result, the decline in revenue has hurt profits.
Out of four quarters in a fiscal year, the company had incurred a loss of Tk3.33 crore in the July-September quarter of FY21.
After that during the three consecutive quarters from October to June, it reported a profit as sales increased.
The company will hold its annual general meeting (AGM) on 29 November through a digital platform. It has set 27 October as the record date to identify shareholders for dividends.
Apex Tannery was incorporated in 1976 and listed on the Dhaka Stock Exchange (DSE) in 1985.
As of August 2021, out of the total shares, sponsors and directors held 30.40%, institutional investors 39.52%, and the general public 30.08%.