Apex Tannery plans fresh deals with exporters to sell finished leather
Apex Tannery will be collaborating with FB Footwear, Footbed Footwear, and Nuovo Shoes (BD), all under a common management
Apex Tannery Limited, a major player in leather processing and finishing in Bangladesh, has announced plans to enter into agreements with three footwear exporters again to sell its finished leather products.
Going into the contracts, the company expects its annual sales to be around Tk16 crore, according to a disclosure published yesterday.
Following the announcement, the company's share price on the day rose by 2.03% to Tk70.50 each on the Dhaka Stock Exchange (DSE).
Apex Tannery will be collaborating with FB Footwear, Footbed Footwear, and Nuovo Shoes (BD), all under a common management.
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In September 2020, the company had similarly entered into contracts with the same companies, with an expected revenue of Tk21 crore at the time.
According to the disclosure, some directors of the Apex Tannery are also directors of FB Footwear, Footbed Footwear, and Nuovo Shoes (BD).
Hedayetullah Ron is serving as a managing director in the three companies, according to the member directory of the Leathergoods And Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB).
In today's stock exchange filing, Apex Tannery stated that the contract involves the sale of finished leather in its usual course of business at market prices for various grades and qualities specified in the agreement.
"It is estimated that annual sales to FB Footwear, Footbed Footwear, and Nuovo Shoes (BD) will be more or less Tk10 crore, Tk5 crore and Tk1 crore respectively. Though the actual sales may vary depending on market demand, the disclosure reads.
The leather processing company has recommended a 5% cash dividend for its general shareholders for the fiscal year 2023-24, amounting to Tk72.03 lakh. Sponsor-directors, however, will not receive any dividends for the fiscal year, as per a board decision.
According to DSE data, Apex Tannery incurred a net loss of Tk12.66 crore in the fiscal year 2023-24, slightly higher than the Tk12.44 crore loss reported in the previous fiscal year.
The loss per share increased to Tk8.31 from Tk8.17 in FY23, according to DSE data.
Established in 1976 and listed on the DSE since 1985, Apex Tannery is a fully export-oriented company, supplying leather products to major markets in Europe, China, and South America.
