Singer Bangladesh returned to profitability in the second quarter (Q2) ended June 2026, buoyed by higher sales and lower finance costs, although weak consumer demand continued to weigh on its overall business performance.
The multinational electronics and home appliance maker posted a net profit of Tk 136 million for the April-June quarter, marking a significant financial turnaround from a net loss of Tk 311 million recorded in the same quarter last year.
Its earnings per share (EPS) stood at Tk 1.36, compared with a loss per share of Tk 3.11 a year earlier, according to the company's unaudited financial statements released on Thursday.
Top-line growth also remained resilient. Revenue rose by 3.4 per cent year-on-year to Tk 8.4 billion, as the company maintained its market position amid a prolonged slowdown in consumer spending.
The company, however, said sales remained below expectations as persistently high inflation, geopolitical uncertainties and adverse weather conditions continued to dampen demand for consumer electronics and home appliances.
The company also faces mounting competition from domestic manufacturers such as Walton and Vision Electronics, alongside imported brands, limiting its ability to pass higher input costs on to consumers.
Although gross margins improved slightly, tighter cost controls lifted operating profit by 10.7 per cent, enabling Singer to post a pre-tax profit of Tk 140.8 million, compared with a pre-tax loss of Tk 279.1 million in the same quarter last year.
A 36 per cent decline in net finance costs, largely driven by exchange-rate stability, further supported the turnaround, the company said.
Market analysts said the latest earnings suggest that Singer's return to profit was driven primarily by improved financial management rather than a broad-based recovery in consumer demand.
While lower borrowing costs and greater operational efficiency strengthened profitability, rising inventories and receivables indicate household spending remains subdued, raising questions over the sustainability of earnings in the coming quarters.
The balance sheet also reflected the challenging business environment.
Trade receivables jumped 77.1 per cent, mainly because of higher seasonal credit sales through dealer channels and slower collections amid sluggish economic activity and the country's political transition.
Despite the quarterly turnaround, Singer remained in the red for the first half of 2026 after posting a Tk 578 million loss in the January-March quarter. As a result, the company incurred a half-yearly net loss of Tk 422 million, an improvement from a Tk 659 million loss in the same period last year.
Half-yearly sales also grew 3.6 per cent year-on-year to Tk 14.15 billion in January-June period this year.
Net operating cash flow per share fell to Tk 5.49 in the January-June period from Tk 12.52 a year earlier. Singer attributed the decline to the nature of its hire-purchase business, extended dealer credit and seasonal factors, saying cash flow is expected to improve from the third quarter.
Inventories increased 9.2 per cent from December 2025 as sales remained below projections, prompting the company to raise short-term borrowings by 19 per cent to Tk 16.6 billion to finance working capital.
Singer also continues to carry a sizable debt burden. It secured a EUR 27.5 million seven-year loan from its parent company in March 2024, including a two-year grace period, in addition to Tk 2 billion in syndicated loans from local banks.
Singer had funded the construction of its new manufacturing plant at Bangladesh Special Economic Zone (BSEZ), a strategic move expected to triple production capacity to achieve cost advantage. Singer started commercial operation at the new manufacturing plant in March 2025, bolstering its foothold in the fast-growing market.
Shares of the company closed 0.39 per cent lower at Tk 76.60 on the Dhaka Stock Exchange on Thursday.
Singer produces and markets a wide range of products in Bangladesh, including televisions, refrigerators, washing machines, air conditioners, furniture, and kitchen appliances-segments.
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