Bata one of the leading footwear retail brands in Bangladesh has recently posted its quarterly report for the period Apr’21-Jun’21. Sales of the company increased by 426.3% YoY from Tk 412.5 Mn in Q2’20 to Tk 2,170.7 Mn in Q2’21. The company achieved profitability in this quarter after incurring loss in the same period last year.
Revenue and Gross Profit Analysis
Revenue increased by Tk 1,758.2 Mn as the footwear brand is recovering from the pandemic woes of last year. During Q2’20, the country was in a nationwide strict lockdown due to the ongoing coronavirus crisis. Businesses and retail stores were completely shut off during that period. Hence, the revenue of the company slumped to Tk 412.5 Mn in Q2’20. The company rebounded well even after there was a second phase lockdown during Q2’21. The stores were open during this period maintaining proper hygiene rules. Bata also started to focus more on E-commerce sales through its own website and different E-commerce partners.
Bata also achieved a gross profit of Tk 775.2 Mn in Q2’21 after incurring gross loss in the same period last year.
Profit Analysis
Bata also returned to profitability due to an increase in sales and recovery of gross profit. Profitability increased by Tk 750.9 Mn from loss of Tk 735.2 Mn in Q2’20 to profit of Tk 15.7 Mn in Q2’21.
Conclusion
The recovery of revenue clearly indicates that the consumers have started spending as the economy is recovering from the pandemic. However, Bata may face another dismal quarter in Jul’21-Sep’21 period due to 1.5 months of countrywide lockdown. Like Q2’20, most of the businesses and retail stores were closed to reduce the spread of delta variant coronavirus in the country.
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