Bangladesh’s leading shoemaker Apex Footwear Limited booked a net profit of just Tk1.41 crore from exports in the financial year ended June 2026, a margin of about 0.16%, even as export revenue jumped 34%, according to its audited financial statements.
Export revenue rose to Tk890 crore from Tk663 crore a year earlier, but higher production costs, financing expenses and tax liabilities largely erased the gains. Cost of goods sold climbed 39% to Tk791 crore, while finance costs increased 49% to Tk58.90 crore. The company also cut export-related marketing and selling expenses by 44%.
Smaller rivals fared far better. MK Footwear PLC, listed on the Dhaka Stock Exchange’s SME platform, earned Tk5.61 crore on Tk90 crore in exports, a margin of 6.29%.
An analyst at an asset management company said Apex made Tk10.79 crore in pre-tax export profit but incurred Tk12.65 crore in tax expenses. A Tk3.27 crore deferred tax adjustment income covered the shortfall. The analyst said the figures point to inadequate returns despite substantial sales growth.
Also Read: Brazil’s tanners hit by 13% slump in finished leather exports
A senior company official blamed the thin margin largely on tax deducted at source on export proceeds. Footwear exporters pay TDS equal to 1% of export value, which banks withhold before crediting earnings. The deduction can be adjusted against final tax liability but is non-refundable.
Apex’s domestic business performed better, with local revenue rising 10% to Tk1,218 crore and profit up 7% to Tk14.11 crore. Overall revenue grew 19% to Tk2,108 crore, crossing Tk2,000 crore for the first time, while total profit rose 15% to Tk15.53 crore.
The board plans to raise up to Tk500 crore through redeemable preference shares to refinance loans, subject to shareholder and regulatory approval. It also recommended a 30% dividend, comprising 15% cash and 15% stock, down from 50% a year earlier.