Bata Pakistan has posted disappointing results for the period ended December 31, 2002, after its net operating income slumped 24.2% to Prs79.2 million ($1.6 million) and sales fell 8%.

The footwear manufacturer reported a 1.76% decline in exports to Prs72.4 million ($1.5 million), which it attributes to increased competition from China. Retail sales, however, went up 8% in pairs and 14% in turnover.

Meanwhile, wholesale business fell 37% in pairs and 41% in turnover. The group blamed its policy of controlling the credit available to wholesale distributors and dealers for the decline.

Bata Pakistan says that production at its Batapur and Maraka factories fell 12.4% to 13.7 million pairs during 2002; to complement domestic production 0.3 million pairs were imported from abroad. The firm’s selling and distribution expenses rose 10.5% due to the increased cost of store rent, repairs and maintenance and fuel and power.

On a positive note, the firm says it had benefited from monitoring developments in the media and through visiting international fairs. The Bata Shoe Organisation Centre for Product Excellence in Jakarta, Indonesia and designers at Bata Canada had also helped the company to keep up to date with new ideas and developments. The manufacturer says it has also reduced imports of raw materials by using locally fabricated machinery to conserve foreign exchange reserves.

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