Record sales, lower operating costs help boost income
Thursday, 30 April 2009
FE Report
Leading electronic and appliance retailer Singer Bangladesh's net profits jumped over 50 per cent last year, as record sales and lower operating costs helped boost its income, the company has said.
Despite the beginning of global financial crisis, the Bangladesh affiliate of Singer Asia Group racked up Tk 153.08 million in net profits in 2008, up from Tk 101 million a year earlier.
"It was a record-setting year for us," company chairman Mahbub Jamil said.
"The company has in place the right strategy and the required depth of expertise. This management has the ability to meet the expectation of our shareholders by improving the profitability of the company" he added.
The company, however, managed to cut back its operating costs by 1.02 per cent as a percentage of sales.
Singer has emerged as a winner and achieved the "star performer" award three times since its introduction in 2006. Star Performer award is the most prestigious from the Singer Asia Group.
Singer's good news came at a time when record fuel and food prices forced Bangladeshi consumers to tighten their purse strings. Food prices almost doubled, making the lives of commoners miserable.
The retail giant had gross profits of Tk 1017 million, compared to Tk 822 million in the previous year, with a growth of more than 23 per cent.
However, gross margins decreased, due to rising costs of raw materials and price-based competition.
Singer also saw its operating profit jumping by 38 per cent to Tk 375 million last year, up from Tk 257 million a year ago. Its sales turnover totalled
Tk 4.4 billion during the review year, a hefty growth of 24.74 per cent over 2007.
Earnings per share increased from Tk 45.38 to Tk 68.22 in spite of the increase of paid up capital by issuing 35 per cent bonus shares for 2007.
"There was an upward trend in the share prices and during the year the highest share value was Tk 2573 and the lowest Tk 1,722," the company head said.
Considering the performance of the company, it recommended a cash dividend of Tk 30 per ordinary share of Tk 100 each, with the total dividend amounting to Tk 67 million or a 15 per cent rise.
The paid up capital also increased to Tk 58.17 million after issuing bonus shares for 2007.
Mr Jamil, however, said the big challenges of today's management are knowledge-based management and advancement of information technology.
Managing director AM Hamim Rahmatullah said his company achieved corporate goal and objectives by integrating right strategies and right products.
"Our company continues to reinvent itself and is determined to grow even more productive, profitable and supportive of its shareholders. As long as Singer Bangladesh maintains this commitment to growth, the prospect of development and change is bright," he said.
Economic uncertainty coupled with speculations about holding the general elections led consumers to move carefully, but the MD said the company had to overcome these challenges.
"We grew rapidly in the refrigerator, colour television, air conditioner, generator, microwave oven and electric oven market. The electric cable business also fared well. We were able to retain our position in the highly competitive cable market," he said.
Mr Rahmatullah said Singer introduced electronic cash register in Bangladesh last year after the government made it mandatory to use this machine in the city's retail outlets.
"This business opportunity, although limited in scale, would help the company to grow further," he said.
It also introduced PeoplesTel wireless telephone sets with Internet connections to provide telecom services to consumers who are keen to have a LAN connection at their home or office.
Leading electronic and appliance retailer Singer Bangladesh's net profits jumped over 50 per cent last year, as record sales and lower operating costs helped boost its income, the company has said.
Despite the beginning of global financial crisis, the Bangladesh affiliate of Singer Asia Group racked up Tk 153.08 million in net profits in 2008, up from Tk 101 million a year earlier.
"It was a record-setting year for us," company chairman Mahbub Jamil said.
"The company has in place the right strategy and the required depth of expertise. This management has the ability to meet the expectation of our shareholders by improving the profitability of the company" he added.
The company, however, managed to cut back its operating costs by 1.02 per cent as a percentage of sales.
Singer has emerged as a winner and achieved the "star performer" award three times since its introduction in 2006. Star Performer award is the most prestigious from the Singer Asia Group.
Singer's good news came at a time when record fuel and food prices forced Bangladeshi consumers to tighten their purse strings. Food prices almost doubled, making the lives of commoners miserable.
The retail giant had gross profits of Tk 1017 million, compared to Tk 822 million in the previous year, with a growth of more than 23 per cent.
However, gross margins decreased, due to rising costs of raw materials and price-based competition.
Singer also saw its operating profit jumping by 38 per cent to Tk 375 million last year, up from Tk 257 million a year ago. Its sales turnover totalled
Tk 4.4 billion during the review year, a hefty growth of 24.74 per cent over 2007.
Earnings per share increased from Tk 45.38 to Tk 68.22 in spite of the increase of paid up capital by issuing 35 per cent bonus shares for 2007.
"There was an upward trend in the share prices and during the year the highest share value was Tk 2573 and the lowest Tk 1,722," the company head said.
Considering the performance of the company, it recommended a cash dividend of Tk 30 per ordinary share of Tk 100 each, with the total dividend amounting to Tk 67 million or a 15 per cent rise.
The paid up capital also increased to Tk 58.17 million after issuing bonus shares for 2007.
Mr Jamil, however, said the big challenges of today's management are knowledge-based management and advancement of information technology.
Managing director AM Hamim Rahmatullah said his company achieved corporate goal and objectives by integrating right strategies and right products.
"Our company continues to reinvent itself and is determined to grow even more productive, profitable and supportive of its shareholders. As long as Singer Bangladesh maintains this commitment to growth, the prospect of development and change is bright," he said.
Economic uncertainty coupled with speculations about holding the general elections led consumers to move carefully, but the MD said the company had to overcome these challenges.
"We grew rapidly in the refrigerator, colour television, air conditioner, generator, microwave oven and electric oven market. The electric cable business also fared well. We were able to retain our position in the highly competitive cable market," he said.
Mr Rahmatullah said Singer introduced electronic cash register in Bangladesh last year after the government made it mandatory to use this machine in the city's retail outlets.
"This business opportunity, although limited in scale, would help the company to grow further," he said.
It also introduced PeoplesTel wireless telephone sets with Internet connections to provide telecom services to consumers who are keen to have a LAN connection at their home or office.