BATA loses its footing in H1 2025

MG News | August 26, 2025 at 02:56 PM GMT+05:00

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August 26, 2025 (MLN): Bata Pakistan Limited (PSX: BATA) witnessed a significant downturn in its financial performance during the six months ended June 30, 2025, posting a net loss of Rs113.4 million compared to a net profit of Rs470.9m in the same period last year.

The iconic footwear company's earnings per share plummeted to a loss of Rs 15 per share, a stark contrast to the Rs 62 per share profit recorded in the first half of 2024.

This dramatic swing represents a complete reversal of the company's profitability trajectory.

Bata Pakistan's revenue declined by 5.07% to Rs9.06 billion during the six months, down from Rs9.54bn in the corresponding period of 2024.

Despite maintaining a relatively stable cost of goods sold at Rs4.92bn (down marginally by 0.22%), the company's gross profit dropped significantly by 10.25% to Rs4.14bn.

The company managed to reduce its core operating expenses by 2.08% to Rs 2.64bn, while depreciation and amortization costs also decreased by 1.89% to Rs 979.7m.

However, these cost-cutting measures were insufficient to offset other financial pressures.

Several factors contributed to the company's poor performance. Other operating costs surged dramatically by 258.07% to Rs50.8m, while research and development and miscellaneous expenses more than doubled, increasing by 140.07% to Rs173.6m.

Finance costs also rose by 10.87% to Rs357.5m, adding to the company's financial burden.

Perhaps most significantly, other income collapsed by 83.71% to just Rs42.1m, compared to Rs258.5m in the previous year.

These combined factors resulted in an operating loss (EBIT) of Rs16.2m, a dramatic shift from the operating profit of Rs771.4m recorded in the first half of 2024.

The company also incurred Rs96.1m in non-operating expenses during the period, which were not present in the comparative period last year. This pushed the loss before tax to Rs106.3m.

Interestingly, the company's tax expense decreased significantly by 97.63% to Rs7.1m, down from Rs300.5m in the previous year, reflecting the reduced profitability and potential tax adjustments.

This story is based on the financial results for the six months ended June 30, 2025, as reported by Bata Pakistan Limited.

Profit and Loss account for the six months ended June 30, 2025 ('000 Rupees)
	30-Jun-25	30-Jun-24	% Change
Revenue / Top-line	9,058,980	9,542,885	-5.07
Cost of Goods Sold (COGS)	-4,918,018	-4,928,800	-0.22
Gross Profit	4,140,962	4,614,085	-10.25
Operating Expenses	-2,637,619	-2,693,618	-2.08
Depreciation & Amortization	-979,700	-998,541	-1.89
Other Operating Costs	-50,835	-14,197	258.07
R&D or Miscellaneous Expenses	-173,611	-72,317	140.07
Other Income	42,118	258,504	-83.71
Finance Costs	-357,527	-322,485	10.87
Operating Profit / EBIT	-16,212	771,431	-
Non-Operating Expenses	-96,110	—	-
Profit Before Tax	-106,322	771,431	-
Tax Expense	-7,127	-300,482	-97.63
Net Profit / (Loss)	-113,449	470,949	-
Earning/(Loss) per share	-15	62	-

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