Apex Footwear sales drop 50% in local market

The ongoing Covid-19 pandemic has profoundly affected the business of Apex Footwear Limited as sales of its shoes in the local market have reduced by almost half and many outlets are closed.

Moreover, in the last three months, most of the company's export orders and shipments have been cancelled.

As a result, the company has fallen into a business recession in the local market as well as in terms of exports in the last quarter of the current financial year.

According to company sources, Apex used to sell products worth Tk2 crore daily only in the local market. About 40 percent of the company's total turnover comes from sales during Eid, which was not possible this year.

Moreover, shoe exports have also declined at an alarming rate because foreign buyers are unable to sell the products due to Covid-19. They are cancelling purchase orders and many are also cancelling shipments.

Although Covid-19 did not affect the company's local sales in the third quarter, exports were affected the profit decreased by about 24 percent.

Last year, the company had 270 sales outlets, 352 franchise outlets and 232 wholesale dealers.

"Covid-19 hurt our business," said Apex Footwear Company Secretary Md Omar Farooq. "Our buyers are cancelling the purchase orders and sales are declining in the local market. It is not possible to keep our sales outlets open," he added.

According to the last unaudited report, the company's net profit was Tk7.13 crore in the July-March period, which was Tk9.37 crore in the same period of the previous year.

During this period, the company's net sales were Tk1,077.10 crore which was Tk1,129.84 crore in the same period the previous year.

At the same time, the company's earnings per share were Tk6.34, which was less than 24 percent from the previous period. Its net asset value per share was Tk250.67.

Last year, the company's net profit was Tk12.28 crore.

Its long-term loan was Tk910.06 crore and the short-term loan was Tk131.74 crore. The company recommended a 55 percent cash dividend for its shareholders this year.

Apex Footwear's sponsors and directors jointly own 25.48 percent of its shares, institutional investors own 35.91 percent and general investors own the rest.

Apex Footwear Limited - a leading shoemaking brand in Bangladesh started its journey more than two decades ago on January 4, 1990. From the inspiration of the leather business, it started the shoemaking operation.

Apex started its retail chain in 1997 to fulfil the footwear needs of Bangladeshi consumers.

Since its inception, Apex has sought to make use of their expertise in shoemaking and gathered through serving major shoe retailers across the world to provide high quality and fashionable footwear to everyone.

The last trading price of each share of the company at the Dhaka Stock Exchange was Tk219.30.

The company was listed on both the stock exchanges in 1993.