Singer Bangladesh seems to have left its agonising days behind with a 34 per cent year-on-year revenue increase to Tk 7.18 billion in the second quarter through June this year, driven by biggest Eid festival sales.
As a result, its profit jumped 237 per cent to Tk 470.76 million in the quarter, compared to the same period of the previous year.
The multinational electronic and home appliance company's profit more than doubled to Tk 583 million in the first half of this year while revenue rose 18 per cent to Tk 10.92 billion during the time, according to its un-audited financial statements published on Thursday.
At the outbreak of the Russia-Ukraine war, the company began facing various challenges, including the devaluation of the taka against the dollar, hurdle to open letters of credit and rising finance costs.
The company adopted several marketing strategies to record a boost to the sales in Eid festivals during the quarter, reads a statement.
Singer is strongly present in the appliances market and will further accelerate its operation in the medium to long term.
The gross profit saw a remarkable 52 per cent year-on-year growth in the six months to Tk 3.08 billion as Singer managed to offset some of the costs by adjusting sales prices.
Overall, operating expenses rose 48 per cent in the first half of this year due to higher shop operating expenses, bad debt warranty, lease depreciation and an increase in insurance cost, the company said.
The finance cost was higher in the first half of the year than last year mainly for borrowing at higher interest rates. The average interest rate has spiked more than 1 per cent compared to last year.
Singer, one of the largest retailers of consumer durables in Bangladesh with 437 outlets, also said it had increased its product prices by 15-30 per cent during the period.
Besides, product stock keeping units and sales channel mix have impacted profit margin positively, said the company.
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.
The company disbursed 10 per cent cash dividend for 2022. The stock has remained stuck at floor, Tk 151.90, since September last year.
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