Bata Shoe's profit grows 35% in Jan-Mar

Bata Shoe Company Bangladesh reported a 35% increase in profit for the January-March quarter this year compared to the same period last year.

According to its statement filed with the Dhaka Stock Exchange (DSE), the company posted profit of Tk18.36 crore and earnings per share Tk13.42.

The company attributed the significant profit increase to revenue growth driven by Eid businesses, school, winter seasons, and other promotional activities.

Despite its profit growing, its share price declined slightly to settle at Tk963.50 at the DSE today (14 May).

Meanwhile, its revenue grew by 15% to reach Tk280.48 crore during the quarter, compared to the same period in 2023.

Sandeep Kataria, CEO of Bata Shoe, in an interview with The Business Standard in March, said the company is implementing a two-pronged strategy to navigate rising inflation and solidify its position in the Bangladeshi market.

Bangladesh has become a top 10 market for Bata, and with continued growth potential, Sandeep also sees the country emerging as a potential global sourcing hub for the footwear industry.

"We'd like to see Bangladesh grow rapidly, much faster than it has in the last few years so that it continues to move up our priority globally," he added.

Bata started its operations in Bangladesh in 1962, nearly a decade before the country's independence.

Emphasising Bata's long-standing relationship with Bangladeshi consumers, Sandeep noted their loyal patronage, from childhood purchases like school and first shoes, to adulthood necessities for work, everyday wear, celebrations, and even special occasions like Eid.

He also acknowledged that there is competition with the local brands but said, "Bata always welcomes such a move which keeps it on its feet and makes it do even better."

"We quite appreciate that we do have some of our competitors who are also our suppliers overseas. So if they improve product quality, we can also take advantage of sourcing up," he said.