Apex posts revenue growth, profits dip
Muhammad Ayub Ali:
Despite economic challenges and rising inflation, Apex Footwear Limited posted strong revenue growth in the first quarter of FY2025–26, though profits fell due to increased tax and financing costs.
According to the company’s quarterly financial statement, Apex recorded Tk 484 crore in revenue during the July–September quarter, up from Tk 423 crore in the same period last year — reflecting a 14.5 percent increase, or an additional Tk 61 crore in business.
The company finalized its financial report during a board meeting on Saturday, and the results were published on the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) websites on Sunday.
However, the strong business growth did not translate into higher profitability. The report shows that net profit fell by about 10 percent, or Tk 23 lakh, compared to the same quarter last year.
Apex earned Tk 2.6 crore in profit this quarter, down from Tk 2.83 crore during the same period a year ago.
An analysis of the financial statement reveals that the surge in tax and financial expenses significantly impacted the company’s bottom line.
During the quarter, Apex paid Tk 4.32 crore in taxes, more than double the Tk 2 crore paid in the corresponding quarter of the previous year.
This sharp increase in tax liability came amid policy changes and higher earnings, which pushed the company into a higher tax bracket.
In addition, the company’s finance costs rose sharply due to increased borrowing rates and higher dependence on bank loans.
Apex spent Tk 42 crore on loan interest and related expenses during the quarter, compared to Tk 28.5 crore in the same period last year — a rise of Tk 13.5 crore.
Despite many financial challenges, Apex’s domestic and export businesses showed resilience, supported by consistent demand in both retail and institutional markets.
The company remains optimistic about maintaining steady growth in sales as the peak winter and festive seasons approach.
Following the release of the quarterly results, Apex Footwear’s shares fell slightly in the Dhaka stock market.
Within the first hour of trading on Sunday, the stock dropped by Tk 0.40 to close at Tk 200 per share, reflecting investor caution over the profit decline despite revenue gains.
Company officials expressed confidence that operational efficiency measures and prudent financial management will help offset rising costs in the coming quarters.
