Published: April 24, 2025, 04:33 PM
Bata Shoe Company (Bangladesh) reported a 26 percent year-on-year drop in profits for 2024, attributing the decline to soaring inflation and political unrest that disrupted retail operations across the country.
According to a disclosure published on the Dhaka Stock Exchange (DSE) website yesterday, the company posted a net profit of Tk 29.57 crore, down from Tk 39.95 crore in the previous year. Earnings per share fell to Tk 21.62 from Tk 29.31 in 2023.
Shares of the footwear giant dipped slightly, declining 0.15 percent to close at Tk 798.80 at the DSE.
Net operating cash flow per share also saw a significant decline, dropping to Tk 71.42 from Tk 93.80 over the same period.
During a board meeting held on 22 April, Bata’s directors recommended a 105 percent final cash dividend for 2024. Combined with the previously declared 340 percent interim dividend, the total dividend payout for the year stands at 445 percent, according to a company press release.
“Last year was a challenging one for Bangladeshi consumers. With food inflation exceeding 10 percent, households cut back significantly on spending,” the statement said. “Moreover, political unrest forced nearly half of our stores to shut intermittently during the third quarter.”
Despite these challenges, the company said it remained focused on operational efficiency and customer engagement, which helped it endure the tough year and prepare for potential recovery.
As of 31 March 2025, sponsors and directors held 70 percent of Bata’s shares, institutional investors held 19.38 percent, foreign investors 1.30 percent, and the general public 9.32 percent, according to DSE data.
Bata has been operating in Bangladesh since 1962 and currently runs 261 retail outlets across the country. Globally, the company has a presence in more than 70 countries, with over 5,000 retail stores and 27 production facilities, according to its website.
