Apex Footwear turns around in post-shutdown period
The company posted a net profit of Tk2.33 crore and earnings per share of Tk2.07 in the first quarter of the current fiscal year
Apex Footwear Limited's revenue jumped by 298% in the July-September quarter compared to that in the previous quarter this year.
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.
The company also posted a net profit of Tk2.33 crore and earnings per share of Tk2.07 in the first quarter of the current financial year. However, in the fourth quarter of the last financial year, the company incurred loss due to the pandemic.
Md Omar Faruque, company secretary of Apex, told The Business Standard, "Shoe sales in the local market increased by 7% in the July-September period of this year compared to that in the same period last year. However, exports have declined by 12%."
He said, "Despite that, the company is in a better position than it was in the April-June quarter. It has been possible for the local market."
"Besides, the company has achieved growth in net profit in the corresponding quarter by reducing administrative and sales cost," he added.
Asked about the export situation, he said, "Currently, many European countries have imposed lockdown to curb a second wave of the coronavirus pandemic. So, as an export-oriented company, we need time to recover export sales."
Recently, Apex has been focusing more on the local market. The company invested Tk100 crore to increase its production for the local market last year.
The company secretary said they have been trying to complete the project in due time.
The company recommended a 25% cash dividend for its shareholders for the last fiscal year, which is its lowest pay-out in the last one decade.
The company's total revenue for the last fiscal year was Tk1,181 crore, which was 25% lower year-on-year.
The company also posted a net profit of Tk6.32 crore and Tk5.62 earnings per share for the last fiscal year.
Apex Footwear started its journey more than three decades ago on 4 January 1990.
It launched its retail chain in 1997 to fulfil the footwear needs of Bangladeshi consumers.
The company was listed on both the stock exchanges in the country in 1993.
Sponsors and directors jointly own 25.48% of its shares, institutional investors own 37.14%, foreign investors own 0.10% and general investors own the rest.
The last trading price of each share of the company at the Dhaka Stock Exchange was Tk219.40 on Sunday.
