Singer Bangladesh Limited, a leading home appliance manufacturer and retailer, has announced its financial performance for the second quarter and the first half of 2024, revealing an improvement in Net Operating Cash Flow Per Share (NOCFPS) due to credit collection from dealers and institutions but a notable decline in Earnings Per Share (EPS).
For Q2 of 2024, the company's EPS dropped to Tk 2.58, down from Tk 4.72 during Q2 in 2023. Similarly, for H1 of 2024, EPS was Tk 2.37, compared to Tk 5.85 in the first half of 2023. The EPS decline reflects the challenges the company faced amid an evolving business environment.
Singer Bangladesh has reported a significant decline in profits for H1 of 2024. According to the company's latest financial statements, the profit for H1 of 2024 stood at Tk 23.62 crore, a sharp decrease from Tk 58.31 crore reported in the same period last year.
The 59.5 per cent drop in profit reflects a challenging economic environment and operational hurdles that have impacted the company's performance. Despite a strong start to the year, the company has faced increased costs and market pressures that have eroded its profitability.
Despite the lower EPS figures, Singer Bangladesh reported a significant improvement in its NOCFPS, which stood at Tk 5.93 for H1 of 2024, a marked turnaround from the negative Tk 2.58 recorded during H1 of 2023.
This positive shift in cash flow has been attributed to better credit collection from dealers and institutions, as well as effective management of payments for imports.
Singer Bangladesh’s Net Asset Value Per Share (NAVPS) decreased slightly to Tk 32.90 as of June 30, 2024, down from Tk 34.03 on December 31, 2023. This decrease in NAVPS reflects the broader financial adjustments and market conditions impacting the company.
The company has acknowledged the challenges inherent in its hire-purchase business model, noting the impact of seasonal factors, including two major festivals in the preceding three months, on its cash flow. It has also emphasised its efforts to control import payments, which have positively influenced its operating cash flow, according to the financial statement.
Overall, while Singer Bangladesh faced declines in its EPS, its improved cash flow performance demonstrates resilience and effective financial management amidst external challenges, it said.
Singer Bangladesh, one of the largest home appliance makers and retailers currently operating through 437 outlets across the country, hiked its product prices by 15-30 per cent during the January-June period last year.
The company disbursed a 35 per cent cash dividend to its shareholders for 2023. The company’s stock price was at Tk 140.90 on Monday.
Singer Bangladesh is 57.0 per cent owned by Retail Holdings Bhold BV (Netherlands) and the shares of the company are publicly traded on the Dhaka Stock Exchange and the Chittagong Stock Exchange.
The company’s principal activities are manufacturing of refrigerators, panel televisions, air conditioners, washing machines, microwave ovens and grinders, and marketing of refrigerators, televisions, air conditioners, sewing machines, computers, washing machines, and other consumer electronics and household appliances.
Incorporated in Bangladesh as a private limited company in September 1979, Singer Bangladesh Limited has been a direct subsidiary of Retail Holdings Bhold BV since 2003.
It became a public limited company in 1983 and is listed on both Dhaka and Chittagong stock exchanges.
Sponsors and directors jointly held 57 per cent of the company’s total shares, while institutions held 28.34 per cent; foreign investors 1.47 per cent and the general public 13.19 per cent as of July 2024.
