Singer's Q1 loss widens 60pc on higher financing costs

FE REPORT
Singer Bangladesh reported a wider loss of Tk 558.63 million in the first quarter of 2026, a whopping 60 per cent increase from the same quarter last year, due to lower-than-expected sales and higher finance costs.
According to its latest unaudited financial statements for the January-March quarter this year, Singer endured a loss per share of Tk 5.60, up from Tk 3.50 in the same period last year.
During the period, revenue rose only 3.44 per cent year-on-year to Tk 5.78 billion.

The company attributed the sluggish performance to a stagnant consumer electronics market, where domestic sales were affected by high inflation and geopolitical tensions. The demand was further weakened by the national election and an extended Eid holiday during the quarter.
Beyond macroeconomic pressures and weak demand, Singer is also facing intense competition from local players such as Walton Group and Vision Electronics, as well as from imported brands.
Singer produces and markets a wide range of products in Bangladesh, including televisions, refrigerators, washing machines, air conditioners, furniture, and kitchen appliances-segments in which these competitors are also actively expanding.
As a result of this competitive pressure, the company has limited scope to raise prices.
In addition to sluggish sales, Singer is facing a sharp rise in finance costs, driven by substantial borrowing for its new factory expansion. The company has taken nearly Tk 20 billion in loans, which have intensified repayment pressure in a high-interest regime.
In the first quarter, finance costs rose 41.43 per cent year-on-year to Tk 671 million.
At the same time, rising import costs are adding pressure. Higher raw material prices and the depreciation of the taka against the US dollar have intensified the strain.
Consequently, operating expenses-including salaries, warranty services, maintenance, and depreciation related to the new factory-are growing at a faster pace than revenue.
These challenges have pushed one of the country's top listed companies into a loss position; however, analysts expect a recovery once the new factory begins contributing to earnings.
Meanwhile, the share price stood at Tk 94.90 on Wednesday on the Dhaka Stock Exchange (DSE), marking a 0.32 per cent increase from the previous trading session.
farhan.fardaus@gmail.com.