Legacy Footwear financial analysis: export revenue rebuilding from a near halt, profit from FDR interest (Oct 2026)

Investment considerations: a debt-free exporter restarting from a near halt, with profit coming from interest

Legacy Footwear PLC describes itself as a 100% export-oriented footwear manufacturing company that started commercial production in 1999 and listed in 2000, selling in Europe and Japan [1 p.12]. Its factory is at Vannara, Mouchak, Kaliakair in Gazipur, and since FY2024 it consolidates a 98%-owned subsidiary, Legacy Shoes Limited, with a factory at the same address [1 p.47] [1 p.53]. The FY2025 directors' report names Germany, the United Kingdom, France, Spain and the Netherlands as the top five export destinations [1 p.6].

The numbers describe a company that came close to a standstill and is restarting. Revenue was BDT 299.8m in FY2019, BDT 119.9m in FY2022 and BDT 1.76m in FY2023, then BDT 22.0m in FY2024 and BDT 55.8m in FY2025 [4 p.2] [1 p.5]. In between, the paid-up capital rose from BDT 130.8m to BDT 430.8m, the bank loan was settled, and the balance sheet moved from net debt of BDT 250m at June 2022 to net cash of BDT 87m at June 2025 [3 p.1] [1 p.43] [15]. Profit in FY2024 and FY2025 came mainly from interest on that cash rather than from making shoes [1 p.56].

For a shareholder the figures are: market cap about BDT 2.74bn, cash BDT 86.9m at June 2025, no bank loan. FY2025 net income was BDT 2.19m, a return on average equity of 0.5%, and the DSE-announced FY2026 EPS of BDT 0.11 implies about BDT 4.7m of profit (derived: EPS x 43.08m shares) [1 p.44] [8]. At BDT 63.6 the shares trade at 578x FY2026 EPS and 5.63x the June 2026 NAV per share of BDT 11.29 [14] [8]; these are stated as facts, not as a view on the price.

Business: an export shoe factory in Gazipur with one subsidiary and no segment data

The company makes "all types of quality leather/synthetic footwear and accessories" for local and international customers, in the words of note 1.02 [1 p.47]. The management discussion calls it 100% export-oriented and says it "is seriously considering to make its appearance in the local market very shortly" [1 p.12]. No segment note splits revenue by market or by product; the revenue note shows one line, Net Sales, of BDT 55.8m [1 p.55]. The filings do not give pairs produced, installed capacity or the number of buyers, so volume and price per pair cannot be separated for this note.

Two companies sit in the consolidated accounts. The parent, Legacy Footwear PLC, reported company-only sales of BDT 45.96m in FY2025 [1 p.86]; the consolidated figure is BDT 55.81m [1 p.44]. The BDT 9.85m difference is a derivation and equals the subsidiary's contribution only if no intra-group sales were eliminated, which the notes do not state. The parent carries its investment in Legacy Shoes Limited at BDT 0.98m [1 p.68] and the non-controlling interest is 2% [1 p.53].

The directors' review of FY2025 says the company "struggled to ensure smooth order flow from its major customers in Europe throughout the year to fill its capacity at sustainable prices" [1 p.7]. The same report lists plans for a water recycling plant, an "EcoTread" line and product diversification [1 p.7]; none of these carries an amount or a date in the filings, and the 24-month DSE news sweep below shows no board approval of capital expenditure for them [8]. The one dated commercial step is the Wenzhou Honshengda (HSD) agreement: HSD is to procure export orders aiming at 300,000 pairs a year (about 25,000 a month), help source raw materials and supply technicians, and the company's disclosure puts the expected additional revenue at BDT 36.6 crore a year [8]. That figure is the company's estimate in its disclosure, and is 6.6 times FY2025 revenue (derived).

Seven years: from BDT 300m of sales to BDT 1.8m and back to BDT 56m

The seven-year record has three phases. In FY2019 the company sold BDT 299.8m, earned a 30.4% gross margin and made BDT 45.2m after tax, the highest revenue and profit in the FY2019-FY2025 series [4 p.2]. FY2020 revenue fell 60% to BDT 121.4m, gross profit was BDT 0.06m and an abnormal loss of BDT 55.2m was booked, giving a net loss of BDT 96.4m, the largest loss in the series [4 p.2]. FY2021 recovered to BDT 157.4m of revenue and a small profit, and FY2022 slipped back to BDT 119.9m and a loss of BDT 11.2m [1 p.5].

FY2023 was the low point: revenue of BDT 1.76m against cost of goods sold of BDT 6.13m, a negative gross profit of BDT 4.37m [1 p.5]. The year still showed a net profit of BDT 3.34m because the abnormal-loss line carried a credit of BDT 12.99m, printed in brackets in the five-year table [1 p.5]; the table does not explain that credit, and the full FY2023 notes were not used for this note. Total comprehensive income that year was BDT 58.7m because of a BDT 65.1m revaluation surplus less BDT 9.8m deferred tax [1 p.5].

FY2024 and FY2025 are consolidated. Revenue rose to BDT 22.0m and then BDT 55.8m, gross margins were 24.4% and 22.3%, and net profit was BDT 3.07m and BDT 2.19m [1 p.44]. Printed EPS is not comparable across the period because the share count went from 13.08m to 43.08m: FY2019 EPS of BDT 3.46 was on 13.08m shares, FY2025 EPS of BDT 0.05 on 43.08m [4 p.2] [1 p.86].

Finance cost is the line that changed most across the period. Financial expenses were BDT 26.9m in FY2019, BDT 30.6m in FY2020 and BDT 19.5m in FY2022, when the Rupali Bank loan stood at BDT 309.0m [4 p.2] [1 p.5] [3 p.1]. In FY2022 they were almost equal to gross profit of BDT 21.3m [15]. From FY2023, after the capital increase and the settlement, financial expenses fell to BDT 0.01m and then to BDT 0.33m and BDT 0.36m, mostly lease interest and bank charges [1 p.5] [1 p.56]. Other income moved the other way, from BDT 1.6m or less a year in FY2019-FY2023 to BDT 8.94m in FY2024 and BDT 5.12m in FY2025 [1 p.5].

Line items: wages and fixed depreciation drive cost; FDR interest drives profit

Revenue. The only revenue line is Net Sales [1 p.55]. FY2025 cash receipts from customers were BDT 49.93m against revenue of BDT 55.81m [1 p.46]. The FY2025 auditor could not match the company's BDT 45.96m of sales to its VAT return and found no reconciliation, while noting the sales "are reflected in the bank statements" [1 p.37]. The directors' reply is that goods are sometimes supplied through third parties who pay the VAT later [1 p.9]. The filings give no breakdown of revenue by market, product or buyer.

Cost of goods sold. FY2025 cost of goods manufactured was BDT 47.32m: materials (leather and chemicals, accessories, packing and spares) BDT 12.72m and manufacturing overhead BDT 34.60m [1 p.55]. Inside overhead, wages, salary and allowances were BDT 16.64m and depreciation BDT 11.36m [1 p.55]. Depreciation was BDT 11.14m in FY2024, when revenue was BDT 22.0m; it was 62% of manufacturing cost in FY2024 and 24% in FY2025 [15]. Materials were 27% of manufacturing cost in FY2025; the notes do not say whether buyers supply materials, and the HSD disclosure says HSD will assist in sourcing raw materials [8].

Each 1pp of gross margin on FY2025 revenue equalled BDT 0.56m, against profit before tax of BDT 3.81m (history-based sensitivity) [15]. Wages rose from BDT 3.77m to BDT 16.64m in FY2025 while revenue rose 154% [1 p.55].

Administrative expenses. These rose from BDT 8.36m to BDT 13.12m in FY2025, of which salaries and allowances BDT 7.15m [1 p.56]. They were 23.5% of revenue in FY2025 against 3.1% in FY2019 [15]. The list includes listing costs that do not scale with sales: DSE and CSE fees, a proceeds-utilisation audit fee of BDT 0.26m and the statutory audit fee [1 p.56].

Finance cost and other income. Financial expenses were BDT 0.36m in FY2025, of which lease interest BDT 0.21m and bank charges BDT 0.15m, with no loan interest [1 p.56], against BDT 19.5m in FY2022 when the bank loan was outstanding [1 p.5]. Other income was BDT 5.12m: FDR interest BDT 7.10m, dividend income BDT 0.42m and rent BDT 0.21m, less an unrealised loss of BDT 2.62m on marketable securities [1 p.56]. In FY2024 other income was BDT 8.94m, including FDR interest of BDT 8.65m [1 p.56]. The FDRs at Jamuna Bank (BDT 120m at June 2024) were no longer held at June 2025 [1 p.80].

Tax. Current tax of BDT 2.24m in FY2025 split into BDT 0.51m on business income and BDT 1.73m on other income [1 p.56]; the tax charge was 43% of profit before tax [15].

FY2026: 9M revenue up 121%, full-year EPS 0.11, cash flow still negative

Nine months to March 2026. Revenue was BDT 62.76m against BDT 28.40m a year earlier, gross profit BDT 6.78m against a gross loss of BDT 2.23m, and net income BDT 1.63m against a loss of BDT 6.08m [5 p.2]. The operating result after finance cost was still a loss of BDT 3.38m; other income of BDT 6.82m turned it into a profit [5 p.2]. The third quarter alone (January-March 2026) had revenue of BDT 19.66m, gross margin 22.1% and net income BDT 6.95m, of which other income BDT 7.66m [5 p.2].

Full year FY2026, as announced. The board met on 29 October 2026 and the DSE disclosure posted on 1 November 2026 gives consolidated EPS of BDT 0.11, NAV per share of BDT 11.29 and NOCFPS of BDT (0.76) for the year to 30 June 2026, against 0.05, 11.21 and (0.73) for FY2025 [8]. The quarterly disclosures give the path of cumulative EPS: 0.04 for Q1, (0.12) for six months and 0.04 for nine months [8]. Fourth-quarter EPS is therefore about 0.07 (derived: 0.11 less 0.04). The FY2026 annual report and its revenue figure are not yet in our corpus, so FY2026 revenue and the FY2026 audit opinion are not known for this note.

The second quarter was a loss: EPS (0.16) for October-December 2025 [8]. Separately, DSE queried the company on 19 April 2026 about an unusual price rise and the company replied that it had no undisclosed price-sensitive information [8]; the weekly high in the 52 weeks to 29 October 2026 was BDT 85.4, in the week of 19 April 2026 [14].

Ratios: ROE 0.5%, no debt, cash 16% of assets

Returns. Return on average equity was 1.1% in FY2023, 0.6% in FY2024 and 0.5% in FY2025 [15]. The equity base of BDT 483m was built by the capital increase, and BDT 115.4m of it is revaluation surplus [1 p.43] [1 p.80]. Before the capital increase, ROE swung from -52.2% in FY2020 to 3.7% in FY2021 [15].

Working capital. Year-end receivables were BDT 34.0m and inventories BDT 40.9m at June 2025, equal to 222 days of revenue and 344 days of cost of goods sold [1 p.43] [15]. Inventory days were 536 at June 2024, the highest of the five year-ends from June 2021, and 109-121 in 2021-2022 [15]. These ratios use year-end balances against low and rising sales, so they overstate the cycle when revenue is growing fast; they are shown as computed. Advances, deposits and prepayments rose to BDT 52.3m, and the company's note lists BDT 48.8m of advances against leather and accessories [1 p.43] [1 p.80].

Leverage and cash. The loan-to-equity ratio was 2.40x at June 2022 and nil from June 2024 [15]. Cash was 53% of total assets at June 2023, 29% at June 2024 and 16% at June 2025 [15]. Asset turnover was 0.10x in FY2025 against 0.33x in FY2021 [15].

Payout. The FY2025 dividend of 0.5% (BDT 0.05 a share) went only to shareholders other than sponsors and directors, a total of BDT 1.44m [8], equal to 66% of FY2025 net income (derived). The FY2026 dividend of 1% to the same group totals BDT 2.90m [8], about 61% of FY2026 profit as derived from EPS.

Against Apex and Bata: lowest gross margin of the three, highest pre-tax margin, almost no finance cost

The two other listed footwear makers with published AnalystBro notes are Apex Footwear (APEXFOOT) and Bata Shoe (BATASHOE). Their figures below come from their own annual reports, re-opened for this note, with each company's printed labels [6 p.98] [7 p.128]. Periods differ: Legacy FY2025 (June), Apex FY2024 (June, the latest Apex annual report in our corpus) and Bata 2025 (December). Before using these figures we read each auditor's opinion. Bata's 2025 report states that the financial statements "give true and fair view" with no qualification [7 p.123]. Apex's FY2024 report gives an unmodified opinion [6 p.92], but Apex's FY2025 accounts, which are not used here, were qualified: "Property, Plant and Equipment include borrowing costs amounting to BDT 827,155,544, which have been capitalized without complying with paragraph 22 of IAS 23" [11]. Legacy's FY2025 opinion is unmodified with an emphasis of matter [1 p.37].

Size is the first difference: Legacy's FY2025 revenue was 0.37% of Apex's FY2024 revenue [15]. Among the three, Legacy had the lowest gross margin (22.3% against 30.3% and 42.6%) and the highest pre-tax margin (6.8% against 1.8% and 2.2%) [15]. Legacy's pre-tax margin rests on other income larger than its pre-tax profit [1 p.44]; Apex and Bata carry finance costs of 6.7% and 2.8% of revenue (gross) against Legacy's 0.6% [15]. All three charge WPPF before tax; Bata's finance costs are shown gross here, with net finance costs of BDT 200.3m after BDT 57.1m of finance income [7 p.128].

Balance sheet and audit: loan settled at a BDT 175.9m exemption, cash down to BDT 87m, two years of audit findings

The capital increase and the loan. At June 2022 the company had share capital of BDT 130.8m, equity of BDT 128.5m and a long-term loan (current portion) of BDT 309.0m [3 p.1]. At June 2023 share capital was BDT 430.8m (43,079,980 shares), equity BDT 482.0m, cash BDT 346.9m and the loan BDT 116.6m [2 p.44]. The FY2024 accounts explain the loan: Rupali Bank's books showed BDT 292,499,292 at 30 June 2023, of which BDT 175,851,988 was exempted by the bank's letter of 5 September 2023 subject to conditions; the company accepted and paid BDT 116,647,303.53 on 19 September 2023 [2 p.75]. The FY2024 cash flow shows BDT 116.6m of "Loan paid to Bank" [1 p.46]. The DSE archive carries quarterly auditor reports on "Capital Raising Proceeds utilization" through the quarter to June 2025 [8]; the terms of the capital raising are not in the filings used for this note.

Where the cash went. Cash fell from BDT 346.9m (June 2023) to BDT 152.5m (June 2024) and BDT 86.9m (June 2025) [2 p.44] [1 p.43]. The FY2025 cash flow statement shows operating cash outflow of BDT 31.4m, purchases of property, plant and equipment of BDT 21.3m, BDT 9.5m put into marketable securities and BDT 2.9m of dividends [1 p.46]. Property, plant and equipment rose to BDT 304.7m [1 p.43].

Where the cash sits. The company's note 13 lists cash at Jamuna Bank PLC (BDT 35.0m in one account), Midland Bank (BDT 13.0m) and "ALPHA CAPITAL MANAGEMENT-U0388" (BDT 34.5m), with cash in hand of BDT 1.87m, against BDT 25.18m of cash in hand a year earlier [1 p.80]. The FDRs of BDT 120m at Jamuna Bank at June 2024 were not held at June 2025 [1 p.80]. Advances against leather and accessories were paid to named suppliers: Uprise BDT 27.05m, RSF Steel Craft BDT 19.50m, Vannara Corporatin Ltd. BDT 2.22m (its relationship to the company is not stated, though the factory is in Vannara village) and Tabir International Ltd. BDT 0.002m [1 p.80]. The note states there was no amount due from directors or officers [1 p.80].

Related parties. Note 3.00 says related-party transactions are disclosed in a separate note [1 p.76]; that IAS 24 note was not found in the pages searched for this note. The amounts printed are: key management pay of BDT 1,359,600 to Quazi Rafi Ahmad (Managing Director), BDT 465,000 to Md. Mahaboob Hasan (CFO), BDT 565,000 to Md Mamun Hossain (Ex. CFO) and BDT 945,000 to Sha-Alam Sapon (CS) [1 p.86]; and, in the company's cash flow, "Receivable from Subsidiary" outflows of BDT 687 in FY2025 and BDT 266,000 in FY2024, with BDT 980,000 invested in the subsidiary in FY2024 [1 p.71]. Legacy Shoes Limited is the only related company named in these pages.

Audit opinions, quoted. FY2024 (M. Z. Islam & Co.), qualified: "The company has recognized BDT 25,178,050 (Legacy Footwear PLC, as cash in hand, held at their head office and factory premises) to the financial statements note no 12 of the Consolidated Financial Statements. However, through our audit procedures we didn't receive reliable and sufficient information/documents to determine the existence of this liquid asset. We couldn't physically verify the cash amount as on 30th June 2024." [2 p.38] The board's reply was that, because of litigation with Rupali Bank, "we had to keep cash in hand BDT 46,875,300 until fiscal year 2022-2023" and used BDT 22,245,000 in FY2024 as CWIP [2 p.10].

FY2025 (M. Z. Islam & Co.), unmodified with an emphasis of matter on three items. On property, plant and equipment: "During our audit, we observed that the company has not maintained a fixed asset register or any detailed schedule for Property, Plant and Equipment (PPE). Moreover, an amount of BDT 41,641,880/= was transferred to PPE from CWIP during the year." On revenue: "We have collected the copy of VAT return but couldn't match the sales amount. Moreover, no reconciliation was prepared with the VAT return and sales. This is in violation of the VAT and supplementary act 2012." The paragraph ends: "Our opinion is not modified in respect of this matter." [1 p.37] [9] On WPPF, the liability of BDT 425,283 includes BDT 258,647 from the prior year "that remains unpaid to the fund", and "the company has not made any interest provision on the unpaid amount" [1 p.38]. The key audit matters paragraph on page 38 refers to "the basis for qualified opinion section", although the FY2025 opinion is not qualified [1 p.38]. The board says a register is being developed and that BDT 258,647 has been transferred to the WPPF account [1 p.9].

Governance: NASCFS Equities is the largest holder at 18.9%; dividends skip the sponsors

Ownership. At 30 June 2025 sponsors and directors held 14,325,389 shares (33.25%) and other shareholders 66.75% [1 p.11]. The largest named holder is NASCFS Equities Ltd (8,150,000 shares, 18.92%), represented on the board by nominee director Hasan Warasul Alam; TS Equity & Ventures Ltd holds 2,250,000 (5.22%) through nominee director Ahmed Farabi Chowdhury [1 p.11]. The Quazi family holds smaller stakes: chairman Quazi Nafees Ahmed 2.62%, managing director Quazi Rafi Ahmad 2.70% and other family sponsors 1.93% [1 p.11]. No shareholder held 10% or more outside the sponsor group [1 p.11]. In April 2026 the chairman gifted 260,000 shares to his spouse [8]; the FY2026 dividend disclosure gives sponsors and directors 14,065,389 shares, which is 260,000 fewer than at June 2025 [8].

Board. Seven board meetings were held in FY2025; the chairman, managing director and nominee director Hasan Warasul Alam attended all seven, and two independent directors attended the two held during their membership [1 p.11]. Note 29 says the company had "Five Directors including One Independent Directors" [1 p.86], while Annexure-2 lists two independent directors [1 p.11]; the two pages differ. The FY2025 AGM agenda included approving a new female independent director [1 p.3]. The board recommended Marhk & Co. as statutory auditor for FY2026, replacing M. Z. Islam & Co. [1 p.8].

Dividends. The company has paid small cash dividends only to non-sponsor shareholders for three years: 1% for FY2024 [2 p.9], 0.5% for FY2025 and 1% for FY2026 [8]. Dividends paid in cash were BDT 3.39m in FY2024 and BDT 2.88m in FY2025 [1 p.46]; unclaimed dividend was BDT 0.81m at June 2025 [1 p.43].

What's next: record date 23 November, AGM 26 December, LDC graduation in 2029

Dated items. The FY2026 dividend record date is 23 November 2026 and the AGM is on 26 December 2026, in hybrid form at the factory [8]. The FY2026 annual report, which will show FY2026 revenue and the FY2026 audit opinion from the new auditor, is due before that AGM (inferred). The Q1 FY2027 board meeting has not been notified; the two precedents were board meetings on 14 November 2024 and 15 November 2025, so mid-November 2026 is the inferred date [8]. These move revenue, profit and the audit opinion.

Policy. The UN General Assembly adopted Bangladesh's move of LDC graduation from 24 November 2026 to 24 November 2029 on 29 October 2026 in New York (30 October in Dhaka) [12] [13]. The company's top five export destinations are Germany, the United Kingdom, France, Spain and the Netherlands [1 p.6].

Commercial. The HSD agreement runs five years from June 2025, so to about June 2030 (inferred from the 26-Jun-2025 disclosure) [8]. Its 300,000-pair goal and the BDT 36.6 crore revenue estimate are the company's own figures; FY2026 revenue in the annual report will be the first full year to compare against them. Already passed: the FY2025 AGM on 20 December 2025 (passed; dividend disbursed per DSE 11-Jan-2026) [8].

Risks: export orders, interest income and record-keeping

Each risk below is tied to the line it moves and to evidence in the filings. A change of a few million taka in other income or gross profit moves the year's result: FY2025 profit before tax was BDT 3.81m [1 p.44].

FAQ

What does Legacy Footwear do?

It makes leather and synthetic footwear for export, mainly to Europe, from a factory in Kaliakair, Gazipur, and consolidates a 98%-owned subsidiary, Legacy Shoes Limited [1 p.12] [1 p.47].

How much revenue did Legacy Footwear have in FY2025?

BDT 55.81m consolidated, against BDT 21.99m in FY2024 and BDT 299.78m in FY2019 [1 p.44] [4 p.2].

Where does Legacy Footwear's profit come from?

Mainly other income: FY2025 other income BDT 5.12m, including FDR interest BDT 7.10m, against profit before tax BDT 3.81m [1 p.44] [1 p.56].

Does Legacy Footwear have debt?

No bank loan since it paid BDT 116.6m to Rupali Bank on 19-Sep-2023 after BDT 175.9m was exempted [2 p.75].

Was the audit qualified?

FY2024 was qualified over BDT 25.2m of cash in hand that could not be verified; FY2025 is unmodified with an emphasis of matter [2 p.38] [1 p.37].

What did Legacy Footwear earn in FY2026?

EPS BDT 0.11 and NAV per share BDT 11.29, with a 1% cash dividend for non-sponsor shareholders [8].

Who owns Legacy Footwear?

Sponsors and directors 33.25% at June 2025, the largest being NASCFS Equities Ltd at 18.92% [1 p.11].

Sources

1. Legacy Footwear PLC Annual Report 2024-2025 (year to 30-Jun-2025; consolidated and company statements) · link · accessed 2026-11-01
2. Legacy Footwear PLC Annual Report 2023-2024 (year to 30-Jun-2024) · link · accessed 2026-11-01
3. Legacy Footwear Limited audited statements, year to 30-Jun-2022 · link · accessed 2026-11-01
4. Legacy Footwear Limited audited statements, year to 30-Jun-2020 · link · accessed 2026-11-01
5. Legacy Footwear PLC un-audited Q3 FY2026 statements (nine months to 31-Mar-2026) · link · accessed 2026-11-01
6. Apex Footwear Limited Annual Report 2023-2024 (year to 30-Jun-2024) · link · accessed 2026-11-01
7. Bata Shoe Company (Bangladesh) Limited Integrated Annual Report 2025 (year to 31-Dec-2025) · link · accessed 2026-11-01
8. DSE news archive, LEGACYFOOT, 1-Nov-2024 to 1-Nov-2026 (company disclosures) · link · accessed 2026-11-01
9. DSE: 'Emphasis of Matter' paragraph, Legacy Footwear PLC, year ended 30 June 2025 · link · accessed 2026-11-01
10. DSE: 'Qualified Opinion' paragraph, Legacy Footwear PLC, year ended 30 June 2024 · link · accessed 2026-11-01
11. DSE: 'Qualified Opinion' of Apex Footwear Limited for the year ended 30 June 2025 · link · accessed 2026-11-01
12. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation' (Oct-2026) · link · accessed 2026-11-01
13. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation' (Oct-2026) · link · accessed 2026-11-01
14. AnalystBro price data (TradingView feed): DSE:LEGACYFOOT weekly bars to 29-Oct-2026 · link · accessed 2026-11-01
15. AnalystBro model for this report (workbook tabs below) · link · accessed 2026-11-01