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Singer Bangladesh’s earnings per share ( EPS) plunged by 50% in the second quarter of this year, offering a revealing glimpse into the impact of the coronavirus pandemic on the country’s centenary-old home appliance manufacturer.
EPS for the April-June 2022 declined to Tk 1.40, a sharpest fall from Tk 2.89 in the same period a year earlier, said the company in a filing with the Dhaka Stock Exchange on Wednesday.
The Q2 EPS is the second lowest since the second quarter of 2020 when it was Tk 0.82.
“EPS decreased due to Covid-19 pandemic circumstances along with essential commodities price hike, devaluation of taka against US dollar, recent flood etc,” said the company.
Its net operating cash flow per share (NOCFPS) has turned negative due to above reasons, though it has improved slightly compared to previous year, it added.
NOCFPS stood at Tk (36.07) for January-June 2022 as against Tk (36.92) for January-June 2021.
“Our cost of goods sold increased by 14 per cent during the period and along with this, transportation costs increased,” Singer Bangladesh Company Sectary Kazi Ashiqur Rahman told The Business Post.
“A container shipping costs skyrocketed. The previous cost was between $300 and $500, which is now between $10,000 and $15,000. As a result, despite the rising sales, the income decreased,” he said.
Singer Bangladesh posted a net profit of Tk 13.95 crore during the second quarter in 2022, compared to a profit of Tk 28.76 crore in the same period last year, according to its financial statement.
On Wednesday, the company’s share price dropped 1.53 per cent to Tk 154.60 on the Dhaka Stock Exchange.
Earlier, Singer Bangladesh Ltd signed an agreement with the Bangladesh Special Economic Zone at Araihazar in Narayanganj on the lease of 35 acres of land to establish its new manufacturing complex.
Two months back, it announced to invest Tk 680 crore to increase its manufacturing capacity.
