Bata Bangladesh reports Q3 loss but declares 340% interim cash dividend

Bata Shoe Company (Bangladesh) Ltd reported a net loss of Tk 12.77 crore in the third quarter of 2024, as limited retail operations dampened its sales and profitability. 

The company's loss per share jumped to Tk 9.34, significantly worsening from Tk 1.19 loss per share in the same period last year, according to a disclosure on the website of the Dhaka Stock Exchange (DSE). 

Despite the quarterly setback, Bata declared a 340 percent interim cash dividend, driven by Q3 results and retained earnings up to December 31 of 2023.

Cash flow of the company also registered a decline, with net operating cash flow per share dropping to Tk 11.44 for the nine months ending in September, compared to Tk 39.28 last year. 

Bata attributed the decline to increased payments to suppliers and contractors, compounded by higher material costs and the depreciation of the Bangladeshi taka against foreign currencies.

Share price of Bata declined 1.87 percent to Tk 930 as of 12:58 pm today at the DSE.