Staff Correspondent
Apex Footwear Limited, the local footwear giant, has announced that its profit grew in the second quarter (Oct-Dec24) of the fiscal year 2024-25, driven by reduced operating expenses.
The shoe manufacturer posted a profit of Tk 3.19 crore in the October-December quarter, marking a 32% year-on-year growth.
During the quarter, its revenue was Tk406 crore, marking a significant growth from Tk316 crore in the same quarter the previous year.
At the end of the first half of FY25, its revenue stood at Tk829 crore, which was Tk668 crore a year ago.
Apex Footwear stated that earnings per share (EPS) for the quarter soared to Tk 2.03 in the October-December quarter, up from Tk 1.53 during the same period a year ago, according to a disclosure on the DSE.
The company attributed the increase primarily to a reduction in operating expenses, which fell to Tk 81.71 crore in Q2 from Tk 87.27 crore in the same quarter last year.
With the second-quarter earnings results, the total profit of Apex Footwear increased by 31 percent year-on-year to Tk 6.02 crore in the July-December period of FY25 compared to the previous year.
However, its cash flow, a major indicator of the financial health of a company, declined.
Apex reported that its net operating cash flow per share (NOCFPS) dropped 14 percent year-on-year to Tk 71.34 in the July-December period of the financial year FY25.
The footwear maker explained that the decline was due to higher payments to suppliers, employees, and other costs, driven by increased material procurement expenses, higher direct labor costs, and rising utility expenses.
Founded in 1990, Apex Footwear began as an export-focused factory and went public in 1993.
It launched Gallerie Apex in 1997 and the brands Apex and Moochie in 2000. By 2018, Apex had become Bangladesh's largest retail chain, with over 250 stores, according to its website.
In the last week, Syed Manzur Elahi, chairman of Apex Footwear Limited, is set to increase his stake in the company by acquiring its additional 50,000 shares from the market.
According to the company's first quarterly financial report of FY23, its net profit stood at Tk 3.46 crore with earnings per share (EPS) of Tk 2.67.
It had logged Tk 3.11 crore in net profit and EPS of Tk 2.40 in the same quarter of the last fiscal year.
The company's shares were traded at Tk 206 per share on Monday at the Dhaka bourse.
As per its website, Apex Footwear is a leading developer, manufacturer, and retailer of quality footwear, operating in all major export markets in Europe, North America, and Japan, as well as in the domestic market in Bangladesh. The company was incorporated in Bangladesh on 04 January 1990 and is listed on both stock exchanges of the country. Apex is the largest shoemaker in South Asia, responsible for approximately 15% of leather footwear exports from Bangladesh.