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Singer profits grow by leaps and bounds on Eid sales

Staff Correspondent
22 Jul 2023 20:58:19 | Update: 22 Jul 2023 21:05:33
Singer profits grow by leaps and bounds on Eid sales

Singer Bangladesh, a big player in the country’s electronics and home appliance market, posted the highest profit in January-June of 2023 over five years, thanks to a boost in sales during the last two Eid festivals.

Meanwhile, the publicly traded company’s net profit was 153 per cent higher than that of the same period last year.

The multinational firm’s net profit stood at Tk 58.3 crore in the January-June period of the current year, which was Tk 23.0 crore in the same period last year, as per data availed of by the company.

Eid-ul-Fitr and Eid-ul-Adha, the two biggest religious festivals of the Muslim community, helped the company report this stellar performance as consumers were found confident to showcase Singer products in their homes during the period.

In April-June 2023, the listed entity’s sales revenue soared by 34.11 per cent to Tk 717.43 crore, against Tk 534.92 crore in the same quarter last year.

Over the past five years, Singer Bangladesh’s first half yearly profit was the lowest at Tk 20.12 crore in 2020, as its sales that time had severely been hit by the coronavirus pandemic.

In the first six months of 2019, the company’s net profit was Tk 51.20 crore against sales of Tk 794.13 crore.

The company in H1 of 2021, reported a profit after tax of Tk 46.76 crore, while its product sales was worth Tk 866.58 crore.

Singer's earnings per share (EPS) rose to Tk 5.85 in the January-June this year from Tk 2.31 reported for the same period one year ago.

The EPS for the April-June quarter of 2023 was Tk 4.72 against Tk 1.40 for the same quarter of 2022.

The company’s net operating cash flow was Tk 2.58 negative in the first half of 2023 compared to Tk 34.05 negative during the same period last year, which marks a significant financial improvement.

Its net asset value per share stood at Tk 34.83 at the end of June this year.

The listed company’s gross profit increased from Tk 203 crore in January-June 2022 to Tk 308 crore in January-June 2023, implying a remarkable growth of 51.74 per cent.

The company said its overall operating expenses were higher during the period of January-June this year due to higher shop operating expenses, bad debt warranty, lease depreciation, increase of insurance cost, and others.

Throughout the period, the company faced several challenges, including the devaluation of the taka against the US dollar, opening LCs, rising finance costs, and other ongoing crises related to the Ukraine war, it added.

“Despite these challenges, we remained committed to staying competitive in the market, taking into account both consumers’ and competitors’ price sensitivity,” the company said in a statement.

Singer, one of the largest home appliance makers and retailers, hiked its product prices by 15-30 per cent during the period of January-June this year.

The company operates its business through 437 outlets across the country.

The company disbursed a 10 per cent cash dividend to its shareholders for 2022. Singer stocks remained stuck at floor, Tk 151.90, since September last year on the DSE trading floor.

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 DSE and the CSE.

The company’s principal activities are manufacturing of refrigerators, panel televisions, air conditioners, washing machine, microwave oven and grinder 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 (the Company) 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 24.73 per cent; foreign investors 4.40 per cent; and the general public 13.87 per cent.