Karachi: Bata Pakistan Limited, a key player in the country's footwear industry, reported a varied financial performance for the year 2024, reflecting broader economic challenges and shifting market dynamics. The company, which has been a cornerstone of Pakistan’s retail and manufacturing sectors since it opened its first store in Lahore in 1942, continues to navigate an evolving economic landscape while maintaining its commitment to quality and innovation.
According to the financial data for 2024, Bata Pakistan's authorized capital remained unchanged at Rs. 100,000,000, while the paid-up capital also stayed consistent at Rs. 75,600,000. However, shareholders' equity saw a slight decrease to Rs. 5.55 billion from Rs. 5.68 billion in 2023. The company's total assets were recorded at Rs. 14.88 billion, a decrease from the previous year's Rs. 16.12 billion. Notably, there was a reduction in property, plant, and equipment, which stood at Rs. 2.61 billion, down from Rs. 2.67 billion in 2023.
Bata Pakistan's sales for 2024 amounted to Rs. 18.33 billion, experiencing a decline from Rs. 19.26 billion in 2023. The gross profit was recorded at Rs. 9.01 billion, slightly less than the Rs. 9.15 billion reported the previous year. The operating profit also saw a decrease, totaling Rs. 2.05 billion, down from Rs. 2.10 billion in 2023. Despite these reductions, the company maintained its profitability, with profit before tax reported at Rs. 1.38 billion compared to Rs. 1.34 billion in the past year. The profit after tax was Rs. 850.73 million, showing a slight decrease from Rs. 916.29 million in 2023.
According to information available from the Pakistan Stock Exchange (PSX), Bata Pakistan's market capitalization reached Rs. 15.26 billion, up from Rs. 13.10 billion in 2023. The company's market price per share stood at Rs. 2,018.85, witnessing an increase from Rs. 1,732.23 in the previous year. The company's price earning ratio was noted at 17.94 times, indicating a rise from 14.29 times in 2023.
The company distributed an interim cash dividend of 1,300%, compared to 1,200% in the prior year. However, there was no final cash dividend proposed or paid in 2024. In terms of operational efficiency, the debt-to-equity ratio was reported at 1.68:1, a decrease from 1.91:1 in 2023, and the current ratio improved to 1.33:1 from 1.27:1.
Bata Pakistan's retail network saw a contraction, with the number of retail outlets reduced to 401 from 444 in 2023. The company’s capacity utilization also declined to 47.21% from 59.93% in the previous year, reflecting a decrease in actual production to 8.67 million pairs from 11.02 million pairs. Capital expenditure for the year was Rs. 413.54 million, down from Rs. 914.74 million in 2023.
As Bata Pakistan continues its operations, the focus remains on adapting to market conditions while maintaining its position as a leader in the footwear industry. The company’s enduring legacy and commitment to innovation and quality suggest a promising outlook as it navigates future challenges.