Apex Footwear Limited more than doubled its net profit to around 5 crore taka in the July–September quarter of FY2027, driven by improved operational efficiency, effective sales and marketing strategies, and tighter control over administrative expenses, despite a modest 14% growth in revenue.
According to a disclosure filed on Thursday, the leading shoemaker's earnings per share (EPS) rose to 2.61 taka in the first quarter, up from 1.27 taka in the same period a year earlier.
Following the disclosure, Apex Footwear's share price climbed to 166.70 taka on the Dhaka Stock Exchange (DSE) on Thursday, up from 160.60 taka in the previous session. Trading volume also more than tripled to 246,000 shares from 73,000 shares a day earlier, reflecting increased investor interest.
The company's revenue rose nearly 14% to 550 crore taka in the quarter compared with the same period a year earlier. However, production costs, including raw materials and labour, accounted for nearly three-fourths of its revenue.
Improved control over operating expenses played a key role in boosting profitability. Such expenses accounted for around 16% of revenue during the quarter, down from nearly 17% a year earlier, helping increase operating profit. Slightly lower finance costs as a proportion of revenue also supported its bottom line.
As a result, the company's net profit margin nearly doubled to around 0.93% from 0.52% in the corresponding quarter of the previous year, although it remained relatively thin.
Apex Footwear also reported improved cash generation, with cash flow per share rising to 62.35 taka in the first quarter from around 58 taka a year earlier. Its net asset value (NAV) per share stood at 358 taka.
The company has a consistent track record of paying dividends and is regarded as an established player in Bangladesh's capital market.
Apex Footwear is a market leader in Bangladesh's footwear industry, with sales revenue nearly twice that of its closest competitor, Bata Shoe. It is also one of the country's leading footwear exporters.