Singer Bangladesh reports Tk 18.54 crore loss in Q3

Singer Bangladesh Ltd reported a loss of Tk 18.54 crore for the July-September quarter of 2024. 

As a result, the company posted a loss per share of Tk 1.86 in the third quarter, compared to positive earnings per share (EPS) of Tk 0.88 during the same quarter in 2023.

"While turnover increased by 8.4 percent during the year, gross profit margin fell by 2.2 percent compared to Q3 2023", said Singer in its un-audited financial statements.

Singer attributed several factors to the decline, including a surge in the sales of lower-margin trade goods, impacted by the ongoing foreign exchange crisis, and higher discounts and promotional expenses aimed at boosting sales. 

The company also highlighted that changes in its product and sales channel mix further pressured margins.

Over the first nine months of 2024, Singer's EPS dropped a staggering 92 percent year-on-year to Tk 0.51, according to a disclosure on the Dhaka Stock Exchange (DSE) website.

Singer also noted a sharp increase in advertising and promotional spending during the quarter, which it expects to deliver returns in Q4 and beyond.

Operating profit dropped 31.4 percent year-on-year in Q3 of 2024, as rising costs in several areas, such as shop operations, rent, bad debts, and factory maintenance weighed on earnings, the company mentioned in its un-audited financial statements.  

A significant factor behind the company's increased financial strain was its soaring finance costs, which surged by 103 percent year-on-year in the third quarter, observed Singer in the disclosure.

The company also reported negative net operating cash flow per share (NOCFPS) of Tk 7.36 for the January-September 2024 period, compared to a positive Tk 8.17 during the same period last year. 

Singer attributed this decline to higher supplier payments, lower-than-expected sales collections, and slower credit recovery from dealers, all of which strained its cash flow.

Shares of Singer dived 7.80 percent to Tk 124.1 on the DSE floor as of 12.52 pm today.