Despite the local currency, the Taka, depreciating by more than 16 per cent against the US dollar in fiscal 2022-23, profits of listed export-oriented garment makers in Bangladesh witnessed a substantial decline due to heightened costs.
Media reports underlined this adding typically, currency devaluation enhances a country’s export competitiveness by lowering product prices in the global market, creating opportunities for increased sales and profits.
Surprisingly, among the 29 listed apparel companies that disclosed their financial reports for the preceding fiscal year, 13 reported lower profits, and five experienced losses for the first time.
The remaining entities performed well. Consequently, their combined profits plummeted by 49.8 per cent to Taka 322 crore during that year, primarily attributed to escalated energy and financing costs, according to industry insiders.
“To my knowledge, around 80 per cent of non-listed garment makers are incurring losses,” meanwhile reportedly opined Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association while adding that 10 per cent are breaking even, while the remaining 10 per cent are still managing to turn a profit.
