Amid declining profitability, the company's board of directors on Monday declared only a 12% cash dividend for the last fiscal year
Apex Tannery Limited has reported a loss per share at Tk1.19 for the year ended June 30,2020 , resulting in a Tk.022 loss compared to Tk1.41 in earnings per share in the previous year.
During the period, the company's earnings per share (EPS) fell compared to the same period last year due to sales dropping as a result of the Covid-19 pandemic, according to an official disclosure posted by the company on Dhaka Stock Exchange (DSE) website on Tuesday.
Amid declining profitability, the company's board of directors on Monday declared only a 12% cash dividend for the last fiscal year, which was their lowest in six years.
Meanwhile, they have also decided to sign a deal with three companies for selling its finished leather.
The three companies are FB Footwear Ltd, Footbed Footwear Ltd, and Nuovo Shoes (BD) Ltd, as some directors of Apex Tannery are also directors in those three companies, according to the disclosure.
Apex Tannery reported its loss per share without fair valuation surplus at Tk1.19, net asset value (NAV) per share of Tk63.89 and net operating cash flow per share (NOCFPS) of Tk-3.34 for 2019-20FY, as against Tk1.41, Tk69.21 and Tk-8.65 respectively for the previous fiscal.
Net profit and earnings per share decreased mainly due to collapse in export demand for leather and an 80% sales drop from April to June period earlier this year due to the pandemic, said the company.
This crash in sales revenue was much higher that could not be overcome by cost reduction, and thus resulted in negative earnings.
Meanwhile, shares in Apex Tannery closed the day (Tuesday) at Tk108.40, down by 2.59% from Tk111.90 per share in the previous session on the Dhaka bourse.
Apex Tannery recommended a 12% cash dividend for FY20, while it disbursed 35% cash dividend for FY19, 40% for FY18, 40% for FY 17, 40% for FY16 and 45% cash dividend for FY15.
The final approval will come during the annual general meeting (AGM) scheduled to be held on November 25 at 11:00 am virtually. The record date is October 21.
Apex Tannery's main activities are to produce and export leather by using Italian chemicals, technology and various types of finished leather for shoes and leather goods. It is a 100% export-oriented company. Its annual production capacity is 32 million square feet.
The company was listed on the Dhaka Stock Exchange in 1985. It belongs to the “A” category.