Singer Bangladesh incurs Tk 31 crore loss in Q2

Singer Bangladesh Ltd plunged into loss in the second quarter of 2025, due to higher production costs that reduced its gross profit margins.

The multinational home appliance manufacturer posted a loss of Tk 31 crore in the April–June quarter, reversing from a profit of Tk 25.71 crore in the same period a year ago, according to its recently released financial statements.

Its loss per share stood at Tk 3.11 for Q2, compared to earnings per share of Tk 2.58 in April–June 2024.

Shares of Singer fell 5.99 percent to Tk 111.5 at the Dhaka Stock Exchange (DSE) as of 1:24pm today.

Singer said despite a 15.4 percent increase in its turnover during the quarter, its gross profit margin fell owing to increased production costs.

"The selling price could not be increased or adjusted to absorb the increased average product cost, which led to a decrease in gross profit margin in order to remain competitive," the company said in the financial statements.

Singer attributed the rise in average product costs to various promotional offers and discounts, along with other factors.

Its operating profit dropped by 5.1 percent year-on-year as operating expenses surged 14 percent, resulting from higher advertisement and sales promotion spending, increased bank charges, warranty expenses, and demurrage costs.

Singer said its net finance costs soared 175.1 percent due to a 15.9 percent increase in short-term borrowings. Rising interest rates added to the finance cost.

Additionally, foreign exchange movements worsened the situation as the euro depreciated by 4.2 percent against the taka since May 2025.

In a disclosure on the DSE website today, the company also said its board has approved the export of a trial consignment of wire harnesses to Beko Romania, a subsidiary of Arçelik AŞ, Turkey.

This follows the commercial operation of Singer's new home appliance plant, marking the official launch of its export initiative.

As of 30 June 2025, sponsors and directors held 57 percent of Singer's shares, institutional investors 30.36 percent, and the general public 12.64 percent, according to DSE data.