Business Report :
Apex Tannery Limited, a major player in leather processing and finishing in Bangladesh, has recommended a 5% cash dividend for its general shareholders for the fiscal year 2023-24, despite an increase in its net loss compared to the previous fiscal year.
The company’s board has decided that only general investors, comprising institutional and public shareholders who hold 33.20% and 31.65% of the company’s shares respectively, will receive the dividend. Sponsor-directors, who own 35.15% of the shares, will not be taking any dividend for this fiscal year.
The total amount set for dividend distribution will be Tk72.03 lakh, according to Apex Tannery.
On Wednesday, the company published its annual financials for FY24 in the Dhaka Stock Exchange, after which its share price dropped by 6.30%, closing at Tk83.30 each.
According to published financials, the Apex Tannery’s earnings per share (EPS) fell deeper into the negative, reaching Tk8.31, from Tk8.17 in FY23.
The company’s net loss increased to Tk12.66 crore from Tk12.44 crore the previous year, according to DSE data.
The annual financials also showed that while the company suffered a loss of Tk5.65 crore in the first half of FY24, it bounced back with a profit of Tk1.88 crore in the third quarter (January to March).
However, the final quarter saw another loss, contributing to two consecutive fiscal years of losses in FY23 and FY24.
Despite the losses, the company paid a 5% cash dividend to its shareholders last year and has recommended the same for FY24. The decision is subject to approval at the company’s annual general meeting (AGM) scheduled for 26 December at BSCIC Tannery Industrial estate. It will be held through a hybrid system, allowing both physical and digital participation.
To determine eligible shareholders, the record date has been set for 4 November.
Apex Tannery, a fully export-oriented company, was established in 1976 and exports leather products to Europe, China, South America, and other major global markets. It has been listed on the DSE since 1985.