Bata Pakistan Limited reported a significant improvement in its financial performance during the first half of 2026, although the footwear company remained in loss amid higher operating and financing costs.
According to the company’s unaudited financial statements for the six-month period ended June 30, 2026, revenue from contracts with customers increased to Rs9.77 billion, compared with Rs9.06 billion in the corresponding period of 2025. The increase reflects stronger sales during the period.
The company’s gross profit rose sharply to Rs4.68 billion from Rs3.95 billion a year earlier, indicating an improvement in gross margins. However, higher distribution and administrative expenses, along with finance costs and other charges, continued to weigh on the bottom line.
Bata Pakistan recorded a loss after tax of Rs191.15 million for the six months ended June 30, 2026, compared with a loss of Rs288.36 million in the same period last year. This represents a substantial year-on-year reduction in losses.
The quarterly figures also showed improvement. For the three months ended June 30, 2026, the company posted a loss of approximately Rs41.8 million, significantly lower than the Rs536.3 million loss reported for the same quarter of 2025.
The improvement was also reflected in the company’s loss per share. Basic and diluted loss per share stood at Rs25.28 for the first half of 2026, compared with Rs38.14 in the corresponding period of the previous year.
Despite the reduction in losses, Bata Pakistan continued to face pressure on its cash position. The company reported a net cash outflow from operating activities of Rs381.15 million during the six-month period, compared with a net cash inflow of Rs386.64 million in the same period of 2025. Investing activities also resulted in a net outflow of around Rs274.99 million, while financing activities recorded a net outflow of approximately Rs527.62 million.
As a result, cash and cash equivalents declined, with the company reporting a negative balance of approximately Rs186.24 million at June 30, 2026, compared with Rs103.95 million at the end of June 2025.
The company’s balance sheet also showed total assets of approximately Rs14.89 billion as of June 30, 2026, compared with Rs13.59 billion at the end of December 2025. Total equity stood at around Rs2.98 billion.
Bata Pakistan’s board, at its meeting held on August 24, 2026, did not recommend any cash dividend, bonus shares, right shares or other entitlement for the period.
Overall, Bata Pakistan’s first-half results point to better revenue generation and a considerable reduction in losses, but the company continues to face challenges from operating costs, financing expenses and cash-flow pressures. Sustaining the improvement in gross profitability while strengthening operating cash generation will remain important for the company in the second half of the year.
