Apex Footwear's profit slumped in the third quarter of the fiscal year 2024-25 as higher tax payments slashed its profit despite a significant jump in revenue. 

The shoemaker's profit fell 40 percent year-on-year to Tk 97.01 lakh in the January-March quarter FY25, according to a price-sensitive disclosure published today.

The company reported that revenue rose 36.70 percent year-on-year to Tk 539.82 crore during the third quarter of the fiscal year. 

Its earnings per share (EPS) stood at Tk 0.62 for the January-March 2025 quarter, down from Tk 1.04 in the same period a year ago, according to a disclosure on the Dhaka Stock Exchange (DSE). 

Shares of Apex dropped 6.32 percent to Tk 204.5 as of 12:18 pm on the DSE. 

Apex said profit before tax increased during the quarter, but net profit declined due to higher tax payments, particularly source tax deducted against increased export-related collections.

"During the quarter under review, income tax expenses rose by Tk 6.26 crore compared to the same period last year," the company said in the DSE disclosure, adding that this led to a drop in net profit and EPS.

For the nine months of July 2024 to March 2025, the company posted an EPS of Tk 4.45, up from Tk 3.99 in the corresponding period of the previous fiscal year. 

Its net operating cash flow per share more than doubled to Tk 176.18 during the nine months, compared to Tk 83.16 a year earlier. 

The increase was mainly due to higher export receipts and strong Ramadan sales in the domestic market, Apex said.

As of March 31, 2025, the shareholding structure of Apex Footwear stood at: sponsors/directors 31.64 percent, institutional investors 27.33 percent, and the general public 41.03 percent, DSE data showed.

Founded in 1990 as an export-oriented factory, Apex went public in 1993. It launched Gallerie Apex in 1997 and its flagship brands, Apex and Moochie, in 2000. 

By 2018, it had become the country's largest retail chain with over 250 stores, according to its website.