JAKARTA – PT Sepatu Bata Tbk (BATA) has signed a Trademark and License Agreement with Bata Brand S.A. to erase the company’s debts from 2022-2024, amounting to over USD 4.8 million.

According to IDNFinancials’ research, Bata Brand S.A. is an affiliate of BATA, connected through Bafin (Nederland) B.V., which holds a controlling 82.01% stake in BATA. Bata Brand S.A. and Bafin B.V. are both part of the Bata Group.

As per BATA’s official statement today (9/1), Bata Brand S.A. will write off the company’s debt for 2022 amounting to USD 1.89 million, for 2023 amounting to USD 1.74 million, and for 2024 amounting to USD 1.24 million.

“The purpose of this debt write-off is to aid the Company’s financial performance,” said Hatta Tutuko, Director & Corporate Secretary of BATA, in a written statement.

As reported by IDNFinancials, BATA has been struggling with consecutive losses since 2022. As of December 2023, net losses surged by 138% year-on-year (yoy) to IDR 162.2 billion, despite revenue slipping only by 5% yoy.

By September 2024, performance had not improved. Revenue plunged 26% yoy to IDR 363.3 billion, causing net losses to soar by 151% yoy to IDR 131.3 billion.

From a financial standpoint, BATA's assets also declined by 21.7% year-to-date (ytd) to IDR 458.5 billion as of September 2024.

In the same period, although liabilities remained relatively flat (+0.4% ytd), the company’s equity sharply decreased due to accumulated losses, plummeting by 98.3% ytd to just IDR 2.3 billion.

“In the long term, the signing of this agreement will strengthen the Company’s financial position,” Tutuko concluded optimistically. (ZH)