Higher product price helps Singer Bangladesh return to quarterly profits

Illustration: TBS

Singer Bangladesh Limited, after two consecutive quarters of losses, made a profit in the January to March quarter of this year, thanks to an increase in the prices of its products. 

During the quarter, the multinational electronics giant's net profit stood at Tk11.23 crore. In the previous July to September and October to December quarters of 2022, the company incurred losses of Tk8 crore and Tk7 crore respectively. 

But the company's revenue declined by 4% year-on-year and stood at Tk373 crore in the first quarter of this year. 

In its financial statement for the March quarter, Singer Bangladesh said the consumer spending on appliance products has decreased under economic pressures like the Ukraine war, high inflation, and the volatility in the forex market. People are mostly prioritising the spending of their earnings to satisfy their basic needs. Hence, the company saw lower turnover. 

However, since it kept its product prices high, the company was able to make a profit in the quarter. 

In the company's annual report, its Chairman Fatih Kemal Ebiclioglu said the ongoing challenges led to reduced consumer demand, and disruptions in production, supply chain, and business as a whole. 

"We had to navigate these difficulties carefully to ensure our business's resilience and growth. However, they also taught us some essential lessons on business continuity during times of uncertainty."

"One of the major factors that influenced our business performance was the higher inflation rate, which resulted in a shift in consumer priorities from non-consumable goods to consumable goods. This shift had a direct impact on our sales figures, which we had to respond to proactively. It had been challenging market dynamics and we had to adjust our strategies and operations accordingly," he added.

Singer Bangladesh's shares have been stuck on the floor price of Tk151.90 apiece since September last year at the Dhaka Stock Exchange.