Bata returns to profit

Bata Shoes (Bangladesh), one of the most popular footwear brands in the country, returned to profit after a year riding on higher sales.

The company's declaration of profit comes as good news for the local economy, which is rebounding strongly despite the ongoing coronavirus pandemic.

Bata registered a profit of Tk 1.56 crore for the second quarter (April-June) of 2021 while it incurred a loss of Tk 73.51 crore in the same period the previous year.

In the April-June quarter of 2020, the multinational shoe maker fell into loss as it missed the country's main shopping season ahead of Eid-ul-Fitr, when incomes had basically been wiped out by Covid-19.

About 25 per cent of Bata's annual business comes during the two Eid festivals, according to the company.

Regarding the reasons behind the rise in profit in the current year, the company said its revenue increased by 426 per cent compared to the same period last year due to higher sales as older merchandise was cleared off by offering bulk discounts to customers.

Bata registered sales of Tk 210 crore in this year's April-June quarter while it was Tk 41 crore during the corresponding period in 2020, the company's financial report shows.

With the quarterly profit disclosure, Bata's stock value rose 4.61 per cent to Tk 747 yesterday.

However, the company incurred losses of Tk 3.33 crore in the first half this year despite logging profits in the second quarter.

The damage was 95 per cent lower during this six-month period compared to that in the same period a year before, when its losses stood at Tk 70.6 crore.