Decreased cost of goods sold boosts Apex Footwear's profit by 173%
The company’s sales have improved compared to the peak of the pandemic, but it has not reached the pre-pandemic level yet
Controlling the cost of goods sold boosted Apex Footwear's profit by 173% in the January-March period of the current fiscal.
During that quarter, the company's cost of goods sold declined by 3.42% compared to the same time of the previous fiscal.
In the July-March period of FY22, the local footwear giant witnessed a 9.15% fall in revenue, and posted a 50% jump in profit, while its cost of goods sold declined by 14%.
The company's profit increased significantly due to an increase in sales and a decrease in the cost of sold goods, disclosed Apex Footwear in a filing on the stock exchange on Wednesday.
Earlier, Apex Footwear witnessed a significant fall in revenue and profit as people's movement was limited during the country-wide lockdown imposed over the Covid-19 pandemic.
According to the unaudited financials, the company's sales have improved in the recent months compared to that during the peak of the pandemic, but it has not yet reached the pre-pandemic level.
As per the statement, in the January-March quarter of FY22, Apex Footwear's revenue rose to Tk283.76 crore from Tk183.19 crore in the same time as the previous fiscal.
At the same time, its profit after tax increased to Tk3.11 crore from Tk1.14 crore in the January-March of FY21.
In the first nine months of FY22, its net revenue declined to Tk849.85 crore from TK935.5 crore in the same period of FY21.
During the July-March period of FY22, its profit increased to Tk7.90 crore from Tk5.26 crore in the same time as the previous fiscal.
In FY21, Apex Footwear made a profit of Tk10.53 crore and paid 35% cash and 5% stock dividend to the shareholders.
