Singer Bangladesh Limited

January 2,2014

Company Profile

Singer Bangladesh Ltd., a subsidiary of The Singer Bhold BV, The Netherlands, has been operating in Bangladesh since 1905 as a provider of home appliances. The company was listed in DSE in 1983. 75% of total shares of SINGERBD are held by its sponsors.

Over its more than 100 years of business, the company has successfully transformed into one of the largest retailer of consumer durables and electronic products. Besides marketing its own brands, singer also markets a few other international brands like Whirlpool, Videocon, Onida etc.

Key Revenue Drivers & Company Insight

With the support of 338 retail shops and 400 dealers (as of 2012), SINGERBD markets a wide range of products including Refrigerator, Television, Motor Cycles, Air-Conditioners, Sewing Machine, Fan, Electric Cables etc. to the customers. Among these products, Refrigerator and Television serve as the core part of SINGERBD's revenue. In the year 2012, those two secured 75% of top line of the company, which was 73% in earlier year.

The company's hire-purchase oriented marketing and large retail presence serve as a strong base for its business. Meanwhile, it has ventured recently into the marketing of Huawei Smart Phones and furniture under the brand name SINGER HOMES.

Financial Performance

Beholding a sales growth of 15%, 600%, 78% and 32%, respectively in Refrigerators, Panel TV, Washing Machine and Oven, top line grew by 23% in the year 2012, which was 13% in previous year. Besides, backed by increased turnover and economic of scale, Gross and Operating Profit Margin increased slightly to 27% and 11% from that of 26% and 9% in prior year. However, Net Profit Margin stayed stable at 7%.

Recently, the company has reported net profit after tax of BDT 343.75 million with EPS of BDT 7.01 for the period of nine months (Jan' 13 to Sep' 13) as against BDT 342.89 million and BDT 6.99 respectively for the same period of the previous year.