Earnings per share (EPS) of around 29 export-oriented and publicly traded textile and apparel companies at two of Bangladesh’s reputed stock exchanges recorded negative trends in the first half of the current fiscal 2020-21 as exports dipped due to the pandemic.

As per a Dhaka Tribune report, 24 of these companies registered negative EPS in H1 of FY21, compared to the same period previous fiscal. In all, 56 export-oriented companies are listed with Dhaka and Chittagong Stock exchanges. Export Promotion Bureau (EPB) estimates Bangladesh’s exports earnings from the apparel sector to have declined 3 per cent to $15.54 billion during July-December period of 2020, against $16 billion in the same period of 2019. However, apparel exports posted 17 per cent negative growth to $27.5 billion in 2020.

During the period, consolidated EPS of Square Textile was Tk 0.79 as against Tk 0.84 for July-December 2019 as per the unaudited financial report for H1 of FY21. EPS decreased due to increase of finance cost as well as decrease of yarn price in international market during the aforesaid period, Square Textile explained in its financial statement posted on the Dhaka Stock Exchange (DSE). Envoy Textile, another export oriented fabric manufacturer also recorded negative growth in earnings. Its EPS was Tk 0.37 for July-December 2020 as against Tk 1.15 for July-December 2019.Earnings of the company dropped mainly due to the unprecedented impacts of pandemic, which disrupted the supply chain and ate up demands of goods, says Abdus Salam Murshedy, Managing Director, Envoy Textile.

As per BGMEA, global brands and retailers canceled or held orders of $3.18 billion during the first wave of the pandemic. They failed to realize dues of reinstated orders, which posed a great threat to earnings and already incurred financial losses, added Murshedy, also a former BGMEA president. Other companies which recorded negative EPS included Saiham Textile, Generation Next Fashion, Safko Spinning, Nurani Dyeing & Sweater etc.