BATA incurs first ever loss amid Covid 19!1 min read
Bata faced a fall is sales of 41 per cent YoY to Tk 508 crore in 2020 from Tk 857 crore. The company incurred a massive loss of Tk132 crore subsequently. Despite incurring losses, it announced a 25 per cent cash dividend for shareholders.
Bata, a consumer favorite when it comes to shoes, had their earnings plummet in 2020 as retail sales slowed down especially during the festivals of Eid-Ul-Fitr, Eid-Ul-Azha, PahelaBaishak, and Puja due to the countrywide lockdown. The major festivals account up to 25-30% of the company’s yearly sales.
The company also incurred losses of Tk.4.9 crore in the quarter ending March of this year despite revenue surging 13% compared to the same period last year. The company reported the loss was incurred due to discounted sales and increased unavoidable expenses due to the second wave of Covid-19.