Bata Shoe Company (Bangladesh) Ltd has posted strong profit growth in the first half of 2026 as tighter cost management and seasonal sales momentum helped offset pressure on consumer spending from high inflation and slower economic activity.
According to a press statement, the footwear maker’s profit after tax rose 86 per cent year-on-year to Tk50.4 crore during January-June 2026, compared with Tk27.2 crore in the same period last year.
Revenue increased 10 per cent to Tk568.68 crore during the period, while earnings per share (EPS), reflecting profit per share, rose to Tk36.87 from Tk19.87 a year earlier.
The company’s performance strengthened further in the April-June quarter, with revenue rising 19 per cent year-on-year to Tk188.98 crore and net profit jumping 238 per cent compared with the same period in 2025.
Bata said disciplined operating expense management, business execution and consumer engagement helped sustain growth despite a challenging market environment.
Seasonal sales lift performance
Bata said Eid-ul-Fitr in the first quarter helped boost consumer demand as the company launched new product collections and ran integrated marketing campaigns.
The company maintained the momentum during the second quarter by leveraging Eid-ul-Adha with targeted commercial initiatives, supporting sales growth during the period.
Bata said operational efficiency and cost discipline played a key role in improving profitability in the first half of the year.
The company also said the business remained resilient despite global geopolitical uncertainty, fuel price adjustments, seasonal market fluctuations and slower economic activity.
Inflation weighs on spending
The strong performance came amid pressure on household budgets, with food inflation remaining above 10 per cent and affecting consumers’ ability to spend on discretionary products.
Bata said higher living costs continued to influence purchasing behaviour, while government restrictions on retail closing hours at 7:00pm under energy conservation measures reduced operating time across the retail sector.
Despite these challenges, the company said focused commercial strategies, product launches and expense controls helped maintain profitability.
Bata’s latest results highlight how consumer-facing companies are relying on operational efficiency and targeted sales campaigns to protect earnings as households remain cautious about discretionary spending.
Bata Shoe shares, having a face value of Tk10, closed 0.91 per cent higher at Tk898.60 apiece on the Dhaka Stock Exchange on Monday.
