Singer posts lowest profit in 14 years

Singer Bangladesh yesterday announced that it registered Tk 7.3 crore as profit after tax in 2022, the lowest in 14 years, attributing the increased cost of raw materials, higher freight rates and devaluation of taka against the US dollar for the fall.

The electronic and home appliance company said its profit after tax nosedived by 86 per cent last year from 2021 even though its turnover increased at the same time.

Singer recorded 8.1 per cent growth in turnover to reach Tk 1,710 crore in 2022 from the previous year, according to a statement.

"The company continued to implement a number of marketing initiatives during the year to improve sales," the multinational company said while announcing 10 per cent cash dividend for shareholders.

Singer, one of the largest retailers of consumer durables in Bangladesh with 437 outlets, also said its earnings per share decreased to Tk 0.73 in 2022 from Tk 5.2 the year prior.

This is mainly because of a lower margin in the third and fourth quarters along with a higher effective tax rate (ETR), said the company, which sells all categories of consumer durables under the Singer and third-party brands in Bangladesh.

"During the year, the cost of sales increased significantly. The cost increased due to price hikes of raw materials, freight, devaluation of taka and Russia-Ukraine crisis," said Singer, which is listed with the Dhaka and Chattogram bourses.

"But the company's strategy was to remain competitive in the market because of the price sensitivity both from consumers and competitors end. For that strategy, Singer could not adjust significant cost increases with the sales price, resulting in lower profit," it added.

Stocks of Singer remained unchanged at Tk 151.90 yesterday at the Dhaka Stock Exchange.

The multinational company said it continued to focus on managing operating expenses, which was 18.5 per cent of its revenue in 2022, up slightly from 18.1 per cent the previous year.

"The expenses grew at a rate less than revenue growth."

Singer said it spent more on financial expenses in 2022 than a year earlier mainly for utilisation of borrowing at a higher level.

The electronic and home appliance manufacturer and marketer said it will further accelerate its operations in the medium to long-term.

With 57 per cent owned by Retail Holdings Bhold B.V., a Dutch private company, Singer Bangladesh has more than 1,000 wholesale dealers apart from its own stores.