Singer rebounds in July-Sept on hiked product prices

Singer Bangladesh rebounded strongly, securing a profit for the July-September quarter this year, as opposed to losses in the same quarter last year, as it managed to offset some of the costs by increasing product prices.
The electronic and home appliance manufacturer made a profit of Tk 87.67 million in the quarter whereas it suffered a loss of Tk 85 million in the same quarter the year before.
Consequently, the earnings per share (EPS) stood at Tk 0.88 for the quarter ended in September, while it was Tk 0.85 in the negative for the same quarter a year ago.
The sales revenue, however, dropped 35 per cent year-on-year to Tk 3.36 billion in the latest quarter.
The company in an earnings disclosure explained that the revenue fell mainly due to the shift of Eid festivals from the September quarter to the June quarter between last year and this year.
The effective tax rate is lower than last year due to lower contribution from the sales of complete business units (CBU), against which the advance income tax was paid at the port as minimum tax liability, said the company.
The company's financial expenses came down to Tk 153 million in the quarter to September, from Tk 161 million in the same quarter last year.
Meanwhile, the company's nine months' sales revenue stood at Tk 14.26 billion through September, slightly down from Tk 14.41 billion a year ago.
The profit jumped 360 per cent year-on-year to Tk 670.78 million in January-September this year as the company hiked sales prices.
Singer said the company had been facing challenges posed by the devaluation of the taka against the dollar and restrictions on opening letters of credit.
"Despite these challenges, the company remained committed to staying competitive in the market, considering both consumers' and competitors' price sensitivity."
The multinational company is strongly present in the appliances market in Bangladesh and pledges to foster its growth in the medium- to long-term.
The net operating cash flow per share stood at Tk 8.2 as of September this year, which was Tk 7.2 in the negative last year, reflecting a considerable improvement.
Singer Bangladesh's annual profit nosedived by 86 per cent to Tk 73 million in 2022 --- lowest in 14 years--- owing to increased cost of raw materials, higher freight charges and depreciation of the local currency against the dollar. The company disbursed 10 per cent cash dividend for 2022.
The stock has remained stuck at the floor price of Tk 151.90 since September last year.

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