Bata Shoe (Bangladesh) Limited declared significant losses during the first half of the company’s financial year due to steep fall in sales amid the countrywide coronavirus outbreak.
The company incurred losses of Tk 70.68 crore in January-June compared with profits of Tk 26.14 crore reported in the same period of the previous year.
The company reported Tk 51.67 losses per share during the first half of the financial year against Tk 19.11 earnings per share in the previous year.
Company sales dropped sharply to Tk 204.92 crore in the period from Tk 459.19 crore in the previous year.
In its financial statement, the company said that generally, around 25 per cent of business came during Eid and at the same time, high value products were also sold during this period which generated a high margin.
These opportunities were washed out due to the pandemic of COVID19, the company said.
Bata reported losses per share of Tk 53.74 for April-June 2020 as against earnings per share of Tk 15.85 for April-June 2019;
The company also mentioned that from the beginning of the year 2020, it had planned the production schedule centring the Eid business and started to build the stock three months earlier.
Due to Covid-19, the business had been affected and the cashgenerating cycle hampered, it said.
The company incurred losses of Tk 73.51 crore in the April-June quarter against profits of Tk 21.68 crore during the same period in the previous year.
The company is mainly engaged in manufacturing and marketing of leather, rubber, plastic, canvas footwear, hosiery and accessories items.
Bata Shoe was incorporated in Bangladesh in 1972.
It is one of the operating companies of the global Bata Shoe Organisation. Majority shares are held by Bafin BV, Netherlands.
Bata posted net profits of Tk 49.39 crore last year, Tk 99 crore in 2018 and Tk 115 crore in 2017.
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