Singer Bangladesh suffered losses in 2024 as increased financing costs dented its earnings.

The company reported a loss of Tk 49 crore in 2024, marking a significant reversal from the profit recorded in the previous year.

As a result, its loss per share stood at Tk 4.91, compared to earnings per share of Tk 5.24 in 2023, according to a disclosure on the Dhaka Stock Exchange (DSE) website.

The company attributed the loss primarily to a net deficit stemming from increased financing costs.

Its financing expenses surged by 137 percent, reaching Tk 143.3 crore in 2024, up from Tk 60.4 crore in the previous year, owing to higher interest rates.

Additionally, exchange losses of Tk 24.7 crore further exacerbated the financial strain, the company said.

Shares of Singer began trading at Tk 106.90 yesterday but declined by 4.12 percent to Tk 102.50 as of mid-day trading.

The multinational company highlighted that its operating expenses and cost of sales outpaced revenue growth, contributing to the losses.

Despite the challenging financial performance, Singer's board recommended a 10 percent cash dividend for the year ending December 31, 2024.

Its net operating cash flow per share (NOCFPS) also dropped to a negative Tk 7.96 in 2024, down from Tk 22.76 in 2023.

The company attributed the decline to increased payments for costs and expenses, coupled with stagnant collections from sales.

Holding excessive inventory in anticipation of higher sales, which failed to materialise, further strained cash flow, Singer added.

The company's net asset value (NAV) per share declined due to a rise in short-term borrowings, which climbed to Tk 1,190.8 crore in 2024 from Tk 814.2 crore in 2023 to meet higher working capital requirements.