Apex sees higher profits despite lower sales

Profits of Apex Footwear rose in the first half of the current financial year (FY) compared to the same period in FY 2020-21 despite a drop in net sales.

The shoemaker logged sales of about Tk 566 crore in the July-December period of FY 2021-22, down 13 per cent year-on-year from Tk 652 crore.

Meanwhile, the company's profits rose to Tk 4.78 crore in the same period, up 16 per cent from Tk 4.12 last year.

Apex was able to register higher profits thanks in part to a drop in its net finance cost for bank loans, which fell 4 per cent to Tk 28.57 crore.

Apex is a leading manufacturer and retailer of footwear in Bangladesh, and also exports its products to the EU, North America and Japan.

The global footwear industry slowed in 2020, when footwear production and exports fell 15.8 per cent and 19 per cent respectively compared to the year before.

"The plight of the footwear industry in Bangladesh started in early 2020 due to the Covid-19 pandemic," the company said in its annual report for FY 2020-21.

This is because owners were forced to close factories, outlets and malls by official order in order to contain the virus, it added.