Bata Pakistan Limited: performance and outlook
Bata Pakistan Limited (PSX: BATA) was incorporated in Pakistan in 1951 and became public in 1979. The company is engaged in the manufacturing and sale of all kinds of footwear along with sale of accessories and hosiery items. Bafin B.V. (Nederland) is the parent company of BATA whereas the ultimate parent company is Compass Limited, Bermuda. As of December 31, 2023, BATA has 444 retail outlets…
Bata Pakistan Limited, a footwear manufacturer and seller based in Pakistan, has shown fluctuating performance in recent years. The company, a subsidiary of Bafin B.V. and Compass Limited, has 444 retail outlets across the country and an annual production capacity of 18.394 million pairs. In 2021, BATA experienced a 19.41% increase in net sales, reaching Rs.13,983.50 million, driven by a change in sales mix, increased volume, and price revisions.
Gross profit improved by 48.15%, reaching 46.31%, while net profit saw a 27.60% decline, hitting Rs.546.089 million with an EPS of Rs.72.23 and a net profit margin of 3.91%. In 2022, net sales grew by 26.82% to Rs.17,733.99 million, and gross profit margin reached its highest level at 48.43%. However, distribution and administrative expenses increased, and operating profit margin was 12.18%.
In 2023, sales increased by 8.62% to Rs.19,262.62 million, with production capacity reaching 18.394 million pairs and operating at 59.93% capacity. Cost of sales increased by 10.62% due to high inflation, Pak Rupee depreciation, and higher commodity prices.
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