Singer Bangladesh returns to quarterly profit after a year

Consumer electronics and home appliance manufacturer Singer Bangladesh Limited returned to quarterly profitability in the second quarter of 2026, supported by improved operating performance and lower finance costs.

However, the company remained in losses during the first half of the year as weak consumer demand, higher costs and challenging market conditions continued to affect its overall performance.

According to a price-sensitive information (PSI) disclosure published today (23 July), Singer's board approved its unaudited financial statements for the quarter ended 30 June 2026.

The company reported earnings per share (EPS) of Tk1.36 for the April-June quarter, recovering from a loss per share of Tk3.11 during the same period last year.

For the January-June period, Singer posted a loss per share of Tk4.24, though the loss narrowed from Tk6.61 recorded in the same period of 2025.

Singer's share price closed at Tk76.90 on the Dhaka Stock Exchange today.

The company's net asset value per share turned negative at Tk2.55 as of 30 June 2026, compared with a positive Tk1.69 at the end of December 2025. Meanwhile, net operating cash flow per share declined to Tk5.49 in the first half of 2026 from Tk12.52 a year earlier.

Singer said its second-quarter revenue increased 3.4% year-on-year to Tk8.4 billion, up from Tk8.1 billion in the same quarter last year. However, sales remained below expectations due to weak demand in the consumer electronics market.

The company attributed the slowdown to persistent inflation, geopolitical uncertainty and unfavourable weather conditions that reduced consumer spending.

Although gross profit margins improved slightly, intense price competition prevented the company from fully passing higher costs on to customers.

Operating profit increased 10.7% year-on-year, helping Singer achieve a pre-tax profit of Tk140.8 million in the second quarter, compared with a pre-tax loss of Tk279.1 million in the same period last year.

Finance costs also declined 35.8%, mainly due to exchange rate stability.

Despite the quarterly recovery, Singer faced pressure on working capital. Inventory increased 9.2% as sales remained below expectations, while short-term borrowings rose 19% from December 2025.

Trade receivables surged 77.1% due to higher dealer credit sales and slower collections amid weak economic activity.

Singer said its operating cash flow was affected by dealer financing, seasonal business patterns and extended credit facilities. The company expects cash flow to improve from the third quarter as business conditions recover.