Singer Bangladesh losses swell, skips dividend for 2025

Singer Bangladesh reported a significantly wider loss for the year ended December 31, 2025, driven mainly by higher financing costs amid elevated interest rates, exchange losses, and stretched working capital.

According to a recent price-sensitive information disclosure, its board has recommended no dividend for 2025, compared to a 10 percent dividend a year earlier.

The company posted a loss per share of Tk 22.56 for 2025, sharply deteriorating from a loss per share of Tk 4.91 in 2024.

Singer said the steep decline reflected a net loss, primarily caused by a 124.7 percent increase in financing costs, lower-than-expected demand realisation and foreign exchange losses. Growth in operating and sales expenses also outpaced revenue growth.

Despite a 14.3 percent increase in turnover in 2025, the gross profit margin declined by 2.3 percentage points year-on-year.

Singer said it could not raise or adjust selling prices to offset higher average product costs due to intense market competition, forcing it to absorb cost pressures to remain competitive.

Frequent promotional campaigns, higher discounts, product mix and sales channel composition further weighed on margins.

Its operating expenses rose 14.5 percent year-on-year, contributing to a 43.8 percent fall in operating profit.

The increase was led by higher salaries and allowances, warranty expenses, bad debts, repairs and maintenance costs, and depreciation following the commissioning of a new factory.

Its interest expenses surged 138.3 percent year-on-year, mainly due to interest on long-term foreign and syndicated loans after the start of commercial production at the new factory, which had been capitalised until March 2025.

Short-term borrowings also increased alongside higher interest rates. An 8 percent depreciation of the euro against the taka since March 2025 further inflated finance costs through exchange losses.

Its net operating cash flow per share improved to Tk 14.56 in 2025 from negative Tk 7.96 a year earlier, reflecting improved management of supplier payments and sales collections.

According to Dhaka Stock Exchange data as of December 31, 2025, sponsor-directors held a 57 percent stake in Singer Bangladesh, with the remaining held by institutional and general public investors.