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After a short setback, Bata is back in the leading position of the footwear market with its innovative, trendy shoeline, a statement from the company said.

Bata recorded an operating profit of Rs. 12.4 million at the end of the financial year 2002 as against the loss of Rs. 31.2 million at the end of 2001.

The Company's retail chain of attractive stores has contributed greatly to this turnaround.

A number of retail outlets in this chain were given a "new look" in keeping with the Bata International standards and now operate individually under a new scheme that ensures generation of increased sales resulting in a higher turnover. The turnover recorded at the end of 2002 was Rs. 1.09 billion compared with the Rs. 1.02 billion recorded in the previous year. This was an increase of Rs. 68 million which represents 7% more than that of the previous year.

The 'Bata Family' concept is one which the Company places great emphasis on and its entire operation from raw material stage to sale of the final product is carried out by the large Bata family of employees totalling approximately 929 at the time of going to print.

Since the low level of business in the previous year was attributed to industrial turbulence experienced in the trade environment and since the Management of the Company values cordial relations with its employees, the Management successfully ironed out the turbulence to the mutual satisfaction of both parties and further consolidated its industrial relations with its employees by entering into a further three-year Collective Agreement with the Wanija ha Karmika Sevaka Sangamaya covering the Company's unionised employees.

A Voluntary Retirement Scheme was also introduced to senior employees to ensure maximum capacity utilisation of the production line thus ensuring that expenses were kept at a minimal level.

Drastic cost cutting measures have also been implemented and contributed to achieving the same goal.

Bata continues to focus on the design, quality and value for money of its products and this focus has enabled the Brand to compete with and hold its own against the large volume of imported products int he island.

The Company's progress in the first four months of the current year which recorded an operational profit of Rs. 23 million against a loss of Rs. 7.6 million in the previous year and a profit before tax of Rs. 4 million against a loss of Rs. 29.5 million for the corresponding period of the previous year, clearly indicates that Bata is well on the way to improving the positive trend thus commenced.

With its well shod feet on the right path, having achieved a turnaround through its attractive shoeline, cordial industrial relations and drastic cost cutting measures, the Company is confident of achieving its anticipated results in the current year, the statement said.

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