Bata one of the leading footwear retail brands in Bangladesh has recently posted its financial report for Q3’21. Revenue of the company increased by 57.7% YoY from Tk 3,447.8 Mn in 9M’20 to Tk 5,437.2 Mn in 9M’21. Bata incurred a loss of Tk 14.7 Mn in 9M’21 as Q3’21 business was again hindered by strict lockdown in July and the first week of August.
Revenue and Gross Profit
Revenue of Bata increased by 57.7% YoY in 9M’21 mainly due to strong growth in Q2’21 (426.3% YoY). Bata had abnormal low sales in 2020 mainly due to the Covid pandemic which forced consumers to cut back on discretionary purchases. In 9M’20 revenue declined by 45.1% YoY from 9M’19. The company started to make recovery mainly in Q2’21. Revenue increased by 1,758.2 Mn.
Gross profit increased by 144.0% YoY in 9M’21 mainly due to an increase in sales and recovery of gross profit margin. Gross profit margin declined to 22.6% in 9M’20 due to the pandemic which was on an average 43.0% from 2017-19. The gross profit margin has increased to 34.9% as shoppers have started to buy discretionary items this year.
Profit
Bata incurred a loss of Tk 147.7 Mn in 9M’21 as the company suffered yet another loss quarter in Q3’21. The company incurred a loss of Tk 11.4 Mn in Q3’21 as business was hindered by strict lockdown in July and the first week of August. However, the company is recovering from a significant loss in 9M’20.
Future Ahead
Since the start of the pandemic, the company had to make massive challenges. However, the company is showing some signs of recovery by focusing on retail and E-commerce business. We expect the company will have another quarter like Q2’21 where Bata recorded a profit of Tk 15.7 Mn if it is uninterrupted by another Covid wave.
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