Singer's loss soars in Q1 on high borrowing costs

Despite higher sales, Singer Bangladesh suffered losses worth Tk 349 million in the first quarter of 2025, owing to significant finance costs.

Interest expenses on borrowing jumped 201 per cent year-on-year to Tk 443 million in January-March this year due to rising interest rates.

Singer's total debt surpassed Tk 19.50 billion by the end of March this year, up from Tk 17.84 billion a year ago.

The multinational electronic and home appliance manufacturer reported a loss of Tk 3.50 per share in the January-March quarter this year, increased from a loss of Tk 0.21 each share in the same quarter a year ago, according to price sensitive information published on Thursday.

Apart from higher finance costs, the rise in forex loss, operating expenses and costs of sales led to the erosion of its bottom-line growth.

The company's sales, however, jumped 39 per cent year-on-year to Tk 5.59 billion in January-March.

Singer obtained a long-term loan of EUR 27.50 million from its parent company in March last year, with a term of 7 years, 2-year grace period plus 5-year repayment period.

Operating profit decreased 3.7 per cent in the first quarter, compared to the same quarter last year, due mainly to an increase in advertisement & sales promotion, bank charges and warranty expenses, said the company in its earnings note.

Gross profit margin fell 1.8 per cent year-on-year in the quarter as the cost of sales went up for various offers/discounts/promotion, whereas the selling price has not been adjusted to absorb the increased cost, said the company.

The rise in the cost of goods sold, driven by high inflation and exchange rate devaluation, contributed to the decline in gross profit margin.

Moreover, the selling price was cut for major products to remain competitive. Moreover, products & sales channel mix have impacted margin negatively, said the company.

Production rollout at new plant

Singer started commercial operation of the new home appliance manufacturing plant two months back, bolstering its foothold in the fast growing market.

The plant is the flagship project within the Bangladesh Special Economic Zone at Araihazar in Narayanganj.

Spanning 135,000 square meters, the new plant is designed to manufacture 90 per cent of its products locally, including refrigerators, televisions, washing machines, air conditioners and other major appliances for the local market.

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