Higher costs weigh on Apex Footwear earnings

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Despite an impressive 51% increase in revenue, Apex Footwear Ltd saw only 11% year-on-year profit growth in the first quarter of this financial year thanks to higher sales, marketing and logistics costs. high and the massive appreciation of the dollar against the dollar. taka.

In the July-September quarter, the company’s revenue increased to Tk 424.68 crore from Tk 281.88 crore in the same period a year ago.

Its local sales and exports increased by 16.45% and 88.38% respectively.

According to its financial statements, the cost of marketing, sales and distribution increased by 28.14% to Tk 68.12 crore.

Its net profit was Tk 3.15 crore, or Tk 2.84 crore in the first quarter of FY22.

Earnings per share (EPS) was Tk 2.67 and net asset value per share was Tk 251.12.

Dilip Kajuri, chief financial officer of Apex Footwear, told The Business Standard: “Operational costs for the business have increased by 5% due to the appreciation of the dollar and recent power outages.”

He said part of the company’s revenue comes from sales of its products that were made during the pandemic.

“In addition, the company recently offered a 26% discount on its products due to its 25th anniversary in the local market, which has significantly increased its sales,” he added.

Local sales usually increase during festivals such as Pahela Baishakh, Eid-Ul-Fitr and Eid-Ul-Adha.

Apex Footwear rebounded strongly from the massive impacts of the Covid-19 outbreak in the country and resulting government restrictions from the second quarter of last fiscal year.

Firoze Mohammad, COO of Apex Footwear Unit 2, said earlier that the company, having captured 28% of the local market, wanted to increase its sales in rural areas of the country.

He said he also wanted to consider a 4% profit to provide export-quality shoes at affordable prices to rural people, adding that the company had already released several products under its “Gram Project”. “.

Apex Footwear was listed on the capital market in 1993.

It recommended 35% cash and 10% stock dividends for its shareholders for FY22.

In FY22, his EPS was 11.70 Tk, which was 8.92 Tk in FY21.

The last trading price of each share of the company on the Dhaka Stock Exchange (DSE) was 257.50 Tk on Sunday.

Of its total shares, sponsors and directors hold 31.75%, institutions 21.79% and general investors hold 46.56% of the shares in October this year.

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