Singer makes Tk 11.27cr profit in Jan-Mar

Singer Bangladesh Limited made a Tk 11.27 crore profit in the January-March quarter of 2023, up 24.25 per cent from a year earlier.

The profit for the electronic and home appliance company stood at Tk 9.07 crore in the identical quarter of the previous financial year.

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The earnings per share were Tk 1.13 in January-March of 2023 against Tk 0.91 in the same quarter of 2022, according to the unaudited financial statements.

The net operating cash flow per share was Tk 10.11 negative in the quarter compared to Tk 13.14 negative in the same three-month period a year ago.

The asset value per share was Tk 31.10 on March 31 this year and Tk 29.97 on December 31 last year.

Turnover decreased to Tk 370 crore compared to the previous year's Tk 390 crore, a de-growth of 4.4 per cent, said Singer in a press release yesterday.

"Overall electronic home appliances industry had declined due to different global and local challenges. Nonetheless, the company persisted in implementing several marketing strategies throughout the quarter to boost sales."

Financial expenses are higher than last year mainly for the utilisation of borrowing at higher interest rates. The average interest rate has increased more than 1 per cent compared to last year, it said.

Singer said throughout the quarter, the cost of sales experienced a significant increase, driven by rising raw material and freight prices, as well as the depreciation of the taka against the US dollar and the ongoing crisis in Ukraine.

Despite these challenges, Singer's strategy was to maintain competitiveness in the market, considering the price sensitivity of both consumers and competitors. In order to achieve this, Singer managed to offset some of the costs by adjusting sales prices, resulting in comparatively higher profit in the first quarter.

"Singer is strongly present in the appliances market and the operation will further accelerate in the medium to long term."

Singer is the largest retailer of consumer durables in Bangladesh, with 427 company-owned stores. It also has more than 1,000 wholesale dealers.