Bata declared dividend despite historical losses

Multinational footwear maker Bata Shoe (Bangladesh) Limited declared a 25% cash dividend despite historical loss in the 2020 fiscal year.

It also recorded the lowest payout to the shareholders in the company's history. In the previous year, it had paid a 125% cash dividend.

The company fixed 12 August as the annual general meeting date and 22 June as the record date.

Last year, the company reported a loss of Tk96.94 per share, whereas, in the previous year, earnings per share had been Tk36.11.

The company also informed that it went through an overall business crisis in 2020. The company's earnings took a drastic fall due to the loss of retail business during the major festivals of 2020, namely, Eid-ul-Fitr, Eid-ul-Azha, Puja, and Pohela Boishakh because of the countrywide lockdown for the Covid-19 pandemic, which covers 25% to 30% of the company's yearly business. 

An estimated 77% of the rural business leaders like dealers and wholesalers were particularly impacted due to Covid-19 restrictions. The loss of their business resulted in the company's business going down by 41% by 31 December 2020. This is the first time in the history of the company that it took such a devastating drop. 

Due to the second wave of Covid-19, the company did not come back in profit in the first quarter of this year.

In January to March quarter this year, it reported a loss of Tk3.58 per share. Over the same period in the previous year, its earnings per share was Tk2.07. 

Meanwhile, there was no impact on its share price on the Wednesday trading session.

In the first trading hour of the Dhaka Stock Exchange, Bata share price was unchanged and its last trading price was Tk693.20.