Apex sees 50pc rise in profits

Apex Footwear saw its profits rise 50 per cent despite recording lower sales between July 2021 and March 2022 of the current financial year (FY) mainly due to lower raw material costs, according to the company's latest quarterly report.

Apex Footwear logged profits of Tk 7.90 crore in the first nine months of FY22 while it was Tk 5.26 crore during the same period the year before.

However, the local shoemaker's sales dropped 9 per cent to Tk 849 crore in the July-March period while it was Tk 935 crore a year earlier.

And although the company's operating costs increased 4.9 per cent to Tk 192 crore at the same time, Apex Footwear managed to register higher profits due to the lower cost of raw materials.

The company spent 70.5 per cent of its net sales behind the cost of goods sold in the nine-month period.

In previous years, it had to spend 74.6 per cent of its sales behind raw materials due to higher prices, according to the financial statements.

Raw materials are generally listed as cost of goods sold on a company's income statement. They are part of a company's direct costs along with labour.

In the January-March period of this year, earnings per share of Apex Footwear stood at Tk 2.64 while it was Tk 0.97 in the same period the previous year.

The company yesterday said in a disclosure that its earnings per share rose significantly due to an increase in sales and decrease in cost of goods sold.

In the three-month period, its sales rose 0.20 per cent to Tk 283.76 crore, the data shows.

Stocks of Apex Footwear rose 6.18 per cent to Tk 297 yesterday at the DSE.