Apex Footwear posts lower revenue, profit in Jul-Sep quarter

Business Desk :
Apex Footwear Limited – a leading shoemaking brand in Bangladesh – has reported a 17% fall in revenue and 29% in net profit in the first quarter of the 2023-24 fiscal compared to the corresponding period in the previous fiscal year.

During July to September of the 2023-24 fiscal, its revenue declined to Tk351 crore, and net profit Tk2.23 crore.

The earnings per share (EPS) stood at Tk1.72, which was Tk2.43 in the same time of the previous fiscal year.

Dilip Kajuri, DMD at Apex Footwear told that “Revenue fell owing to a drastic fall in exports. During the quarter, exports fell by 50% in quantity, and revenue from export declined by 40% over the same quarter of the previous fiscal year.”

He said sales in the local market remain almost the same but costs hiked due to foreign currency devaluation to import raw materials.

“Due to increased inflation, the purchasing power for products has declined. Consequently, we’ve noticed a decrease in the sales of higher-priced products and an increase in the sales of lower-priced items throughout the quarter. This indicates a shift where customers who previously purchased higher-priced products are now opting for lower-priced alternatives,” he added.

Apex Footwear achieved record sales in the last 2022-23 fiscal year despite high inflation and an economic crisis.

It was boosted by two Eid-ul-Azha and one Eid-ul-Fitr festivals between July 2022 and June 2023.

The revenue in FY23 increased to Tk1,653.59 crore, and the profit increased to Tk16.71 crore.

Its export revenue increased by 35% to Tk713 crore, and local sales increased by 22% to Tk939 crore.