Singer Bangladesh pushed into junk category

Home appliance maker Singer Bangladesh has been moved to the “Z” or junk category on the Dhaka bourse after its accumulated losses exceeded its paid-up capital.

The company has come under pressure mainly because of higher borrowing costs, its reliance on imports and intense competition from local rivals, according to an analysis by BRAC EPL Stock Brokerage.

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In 2025, Singer Bangladesh’s revenue rose to about Tk 2,130 crore from around Tk 670 crore in 2012. However, over the same period, its net profit swung from about Tk 49 crore to a loss of around Tk 224 crore.

“While the franchise is still selling, the business is struggling to convert gross profit into sustainable bottom-line earnings,” said the analysis.

In 2025, the company’s finance costs more than doubled from a year earlier to Tk 322 crore, far exceeding its operating profit of around Tk 55 crore. The analysis said revenue growth was no longer enough to support the investment case.

Turkish industrial conglomerate Arçelik acquired a majority stake in Singer Bangladesh in 2019. Alongside its flagship Singer brand, the company also markets products under the European appliance brand Beko and Japanese Hitachi.

The latest financial strain follows a period of strategic investment, including the construction of a new manufacturing facility in the Japanese Economic Zone in Narayanganj and a stronger push to expand the Beko brand.

According to the analysis, both were sensible long-term decisions to improve the company’s business mix. However, they also increased debt, fixed costs, marketing expenses and working capital pressure just before the economic environment became more challenging.

“Finance cost has emerged as the immediate pressure point,” it said.

Short-term borrowings climbed to around Tk 1,394 crore in 2025, while interest-bearing liabilities accounted for 66 percent of total assets.

The same pressure has continued this year, with turnover edging up but losses widening as finance costs rose sharply.

Foreign exchange exposure has added another layer of pressure. The company still depends on imported inputs and finished goods, while the depreciation of local currency taka between 2022 and 2024 exposed its profit and loss account to foreign exchange losses.

With the exchange rate now more market-driven, the company needs a more meaningful increase in local value addition to reduce volatility in its profit and loss account, said the analysis.

It said competition has become a third challenge. Walton, PRAN-RFL, imported brands and discount-led retailing have eroded pricing power in the appliance market, putting pressure on Singer’s gross margin.

The BRAC EPL Stock Brokerage analysis said the company could still defend sales volumes, but only at the expense of margins. Local players such as Walton and PRAN-RFL appear better placed to protect market share through scale, localisation and value pricing.