Bata Bangladesh witnesses 26pc profit decline

Business Desk:

Bata Shoe Company (Bangladesh) witnesses its profit drop in 2024 due to high inflation and political unrest that disrupted retail operations.

Its profit slumped 26 per cent year-on-year to Tk 29.57 crore.

The company reported earnings per share of Tk 21.62 last year, down from Tk 29.31 in 2023, according to a disclosure posted on the website of the Dhaka Stock Exchange (DSE) on Wednesday.

Shares of the shoemaker fell 0.15 percent to close at Tk 798.8 at the DSE.

Its net operating cash flow per share declined to Tk 71.42 from Tk 93.80 over the same period.
At a board meeting yesterday, the footwear maker’s directors recommended a 105 percent final cash dividend for 2024.

Combined with the previously declared 340 percent interim dividend, the total payout for the year stood at 445 percent, according to a press release from the company.

“Last year was a challenging one for Bangladeshi consumers. With food inflation over 10 percent, people tightened their belts, significantly reducing consumer spending,” Bata said in the statement.

“Additionally, nationwide unrest led to the intermittent closure of nearly half of our stores during the third quarter.”