Singer Bangladesh incurs hefty Tk225cr loss, skips dividend first time
Operating and sales expenses also grew faster than revenue, further weighing on profitability, Singer said in its annual corporate declaration.
Singer Bangladesh Limited, a subsidiary of Beko – the flagship brand of Türkiye's Koç Holding – posted a hefty loss of Tk225 crore in 2025, prompting the company to skip dividend payouts for the first time in its history.
Despite recording a 14.3% year-on-year increase in revenue, the company slipped deeper into the red mainly due to a sharp rise in finance costs, which surged 124.7% amid higher interest rates, financing of stretched working capital, lower-than-expected demand realisation, and foreign exchange losses.
Operating and sales expenses also grew faster than revenue, further weighing on profitability, Singer said in its annual corporate declaration.
The company will hold its annual general meeting (AGM) digitally on 20 April, while the record date has been set for 26 February.
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Loss widens sharply
Singer Bangladesh, a leading consumer electronics and home appliances maker, reported that its losses widened by Tk175.97 crore, or 359%, in 2025. Loss per share stood at Tk22.56.
Revenue rose to Tk2,132.61 crore in 2025 from Tk1,865.8 crore a year earlier. In 2024, the company incurred a loss of Tk48.93 crore, with a loss per share of Tk4.91, yet paid a 10% cash dividend to shareholders.
Singer attributed its 2024 losses to macroeconomic challenges, despite a 9% growth in revenue that year. In its 2024 annual report, the company had expressed optimism, citing a stabilising external environment and the commissioning of a new plant as factors that could support a turnaround in the current financial year.
In a price-sensitive information (PSI) disclosure, Singer said that although turnover increased in 2025, gross profit margin declined by 2.3 percentage points compared to 2024. Selling prices could not be adjusted to offset higher product costs due to intense market competition, resulting in margin erosion.
Interest expenses soars 138%
Interest expenses jumped 138.3% year-on-year, driven mainly by interest on long-term loans— including IC foreign and syndicated loans—after the commencement of commercial production at the new factory in March 2025. Short-term borrowings also rose alongside higher interest rates, while an 8% depreciation of the euro against the taka since March 2025 added to finance costs through exchange losses.
Net asset value plunges
Singer's net asset value (NAV) dropped sharply to Tk16.8 crore in 2025 from Tk257.4 crore a year earlier. The company attributed the decline to a substantial increase in both long- and short-term debt, including Tk651.3 crore in long-term loans for new manufacturing facilities in an economic zone and Tk1,394 crore in short-term borrowings to meet working capital needs.
Built in 2022 with an investment of $78 million (around Tk800 crore), the factory—spread over 135,000 square metres—aims to localise production by manufacturing about 90% of Singer's products domestically.
This marked the first investment in Bangladesh by Arçelik, the flagship company of the Turkey-based Koç Group, which acquired Singer Bangladesh in 2019.
