Despite Closing Factories and Hundreds of Stores, BATA Still Records Rp116 Billion Loss

PT Sepatu Bata Tbk (BATA) is still struggling to escape business pressures that have led to substantial losses for two consecutive years. The company previously undertook a massive restructuring programme, which involved closing more than 200 loss-making outlets, halting operations at its Purwakarta factory and warehouse, and clearing inventory through significant discounts and old stock sales. The total restructuring costs recorded by the company in 2024 reached Rp124.08 billion. Nevertheless, the results have not yet fully manifested in the 2025 financial performance.

Throughout 2025, BATA recorded net sales of Rp298.25 billion, a 35.2% decrease compared to the previous year’s figure of Rp459.98 billion. Alongside this decline, the company’s gross profit also fell to Rp105.45 billion from the previous Rp197.15 billion.

In terms of profitability, the company still recorded an operating loss of Rp106.34 billion, although this showed improvement compared to the operating loss of Rp145.05 billion in 2024. The loss attributable to the owners of the parent entity was recorded at Rp116.23 billion, which is lower than the loss of Rp147.97 billion in the previous year.

Financial pressure is also reflected in the company’s balance sheet. BATA’s total assets decreased to Rp282.56 billion at the end of 2025 from Rp405.66 billion in the previous year. Meanwhile, the company recorded a capital deficiency of Rp131.65 billion, worsening from a negative position of Rp15.93 billion at the end of 2024.

Regarding liquidity, BATA’s total short-term liabilities reached Rp382.24 billion, significantly higher than its current assets of Rp184.35 billion. This condition has led auditors to highlight material uncertainty regarding the company’s ability to maintain its status as a going concern.

However, operating cash flow showed signs of improvement. BATA recorded a positive operating cash flow of Rp37.57 billion in 2025, up from Rp16.08 billion in the previous year. Nonetheless, the year-end cash position declined to Rp29.88 billion from the previous Rp53.62 billion.