Singer Bangladesh reports Tk49cr loss
Its shares closed at Tk106.90 on Monday
Singer Bangladesh, a multinational home appliances manufacturer, recorded a loss of Tk49 crore in 2024.
Owing to the losses, the company reduced its dividend to 10% cash, down from 35% in the previous year.
The company disclosed its annual financial results and declared the dividend during a board meeting held today, according to sources.
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For the past year, the company reported a loss per share of Tk4.91. This marks the first time in its history that Singer Bangladesh has incurred an annual loss.
The company has scheduled its annual general meeting for 22 April, to approve the dividend, while the record date is 18 February.
In a statement, the company explained that the loss was primarily caused by a 137% increase in financing costs, mainly due to higher interest rates, which rose to Tk143 crore in 2024 from Tk60 crore in 2023. Additionally, higher exchange losses, amounting to Tk25 crore, also contributed to the loss. Also, the growth in operating expenses and sales costs exceeded revenue growth, further impacting the company's financial performance.
It also faced a net operating cash crisis due to higher costs and expenses compared to collections from sales. The retention of a high inventory in anticipation of sales that failed to materialise adversely affected cash flow.
Singer Bangladesh's shares closed at Tk106.90 on Monday, down 0.83% from the previous session at the Dhaka Stock Exchange, marking the lowest for the company since December.
