Fortune Shoes profits up by 200% in Q1

Fortune Shoes Limited – a local footwear manufacturer for exports – posted a 200% year-on-year growth in profit in the first quarter of the current fiscal year.

In the July-September quarter of fiscal 2021-2022, the profit stood at Tk19.96 crore and the earnings per share (EPS) at Tk1.29.

In the corresponding period of the previous fiscal year, the net profit was Tk6.70 crore and EPS Tk0.46.

In fiscal 2019-20, the company's exports fell due to the Covid-19 pandemic, resulting in a decline in both revenue and profits.

As exports increased again, its revenue grew by 18% to Tk140.44 crore and profit by 110% to Tk24.61 crore in fiscal 2020-21. The EPS stood at Tk1.59.

According to officials at the company, the country's footwear exports rose by 19% to $569.88 million in that fiscal year.

Following its rosy financials, the board of directors of the company, which got listed on stock exchanges in 2016, has recommended 10% cash and 5% stock dividends for the shareholders.

But the proposed stock dividend will be distributed after approval from the Bangladesh Securities and Exchange Commission (BSEC).

As per disclosures on 11 October, after years of successful presence in the international market, the footwear manufacturer now wants to have a foothold in the local retail market.

As per the decision, it will form a company named Fortune Gallery Limited which will operate retail stores across the country under the brand name of Fortune Gallery.

The company will sell footwear and lifestyle products from these stores.

Initially, the board of Fortune Shoes have decided to subscribe to 49% shares in Fortune Gallery.

The remaining shares will go to other promoters.