Apex Footwear makes a strong recovery

Apex Footwear has bounced back strongly from massive impacts wrought by the Covid-19 outbreak in the country and its consequent government restrictions.

The local footwear giant has reported a 12% and 9% growth in revenue and profit respectively for the October-December period of fiscal 2021-22 riding on an increase in sales in the local market and exports.

Officials at the company said the sales went up after the reopening of the economy and educational institutions last year.

According to the footwear manufacturer, more than 50% of its revenue comes from exports and the rest from the local market.

But in the 2020-21 fiscal year, its 57% revenue came from exports and 43% from local sales because of the pandemic which severely hampered the festival centric sales.

Usually, in festivals such as Pahela Baishakh, Eid-Ul-Fitr, and Eid-Ul-Adha local sales revenue increases.

The pandemic situation was almost normal in the country at the end of 2021, and the economy fully reopened as business activities returned to the nearly pre-pandemic level.

In the July-September quarter, the local brand with global exposure saw a staggering 29% drop in sales compared to the same period of the previous fiscal year as exports fell amid the pandemic.

According to the company, despite a decrease in revenue for lower sales in the first quarter, its profit increased by 21% from a year earlier for the reduction in its cost of production.

"After the reopening of the economy, footwear sales have increased significantly in both local and foreign markets," an official at the footwear giant, seeking anonymity, told The Business Standard.

"The Covid-19 pandemic was almost normal in the second quarter. People's movement increased compared to the pandemic time and educational institutions reopened, helping the company post higher revenues," he added.

He fears the fast-spreading omicron variant of the coronavirus may impact the company's sales if the situation prolongs.

According to Apex Footwear's unaudited financials for the first half of this fiscal year, it has reported a Tk284.20 crore revenue in the second quarter, which is higher than Tk253.97 crore a year ago.

Its profit rose to Tk1.95 crore from Tk1.79 crore in the October-December of FY21.

In the July-December period of 2021-22, its revenue declined by 13% but profit rose by 15.98% over the same period of the previous fiscal year.

During the period, it has reported Tk566.09 crore revenue, and Tk4.79 crore net profit after tax and at the same period of FY21, its revenue was Tk652.32 crore and profit Tk4.12 crore.

According to industry insiders, government restrictions on people's movement had badly impacted the shoes and footwear industry.

The footwear sales have increased after the economic activities returned to almost normal.

Apex Footwear was listed on the capital market in 1993. In FY21, its revenue declined to Tk1,176.40 crore from Tk1,181.01 crore in FY20.

It paid 35% cash and 5% stock dividends to its shareholders.

On Thursday, its share prices declined by Tk12.5 or 3.63% to Tk331.80 from Tk344.30 each in the previous trading session.