Cheap shoes from other Asian countries have hit exports at Bata Pakistan Ltd. leading to a fall in profits for the footwear manufacturer. Pre-tax earnings were down 9.5% to PRs23.7 million ($380,000) for the first half of 2001 on reduced net sales of PRs875.2 million ($14 million), down 10% from PRs974.0 million ($15.6 million) for the corresponding period of the previous year. After tax, profits were down 48.6% to PRs14.6 million, from PRs21.7 million last year, cutting the company’s profit margin to about 1.6%, from 2.2% in the same period of 2000.

The company had indicated last year that competitive pressures were mounting in the export market, mainly thanks to low priced merchandise from China, Taiwan and Vietnam. A policy of consolidation in the domestic sphere has been pursued, with more new products and an expansion of the company’s retail network. At the end of 2000, the company had 223 retail stores, 120 agencies and 23 wholesale depots.