Bata Bangladesh, the leading footwear manufacturer, has marked a remarkable achievement in the first half of 2023. Despite economic challenges, the company posted its highest ever revenue, attributing this success to increased consumer spending during the Eid festivals.
Eid Festivals Drive Sales
Consumer spending traditionally surges during the festive Eid season. People shop for new clothes and shoes, and Bata reaped the rewards of this trend with record breaking revenue.
Between January and June, Bata Bangladesh generated Tk566.64 crore in revenue and reported a net profit of Tk43.87 crore, as per a stock exchange filing. Earnings per share stood at Tk32.07, a 31% increase from the previous year.
Festivals as Revenue Cornerstones
Around 35% of Bata Bangladesh’s annual sales revenue is derived from major festivals, including Eid ul Fitr, Eid ul Adha, Puja, and Pahela Baishakh.
Despite inflation affecting purchasing power, Bata’s strategic campaigns and commitment to quality helped maintain strong sales figures during the Eid season. The company overcame challenges, including the impact of COVID 19 waves on festival sales.
Bata in Bangladesh
Bata began its operations in Bangladesh in 1962 and currently operates two manufacturing facilities near Dhaka. Their combined daily production capacity is 1.60 lakh pairs of shoes.
The company’s annual sales reach approximately three crore pairs, making it a significant contributor to the global Bata Shoe Organization. Bata Bangladesh is a subsidiary of Bafin (Nederland) BV in the Netherlands, which holds 70% of the company’s shares.
Despite its impressive H1 results, Bata Bangladesh’s shares saw a 0.24% dip, closing at Tk999.50 each on Tuesday at the Dhaka Stock Exchange. Nonetheless, the company provided shareholders with a record high 365% cash dividend in 2022, demonstrating its commitment to investors.
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