Singer Bangladesh slips into Tk114cr loss despite higher sales

Singer Bangladesh Limited, the multinational electronics and home appliance giant, reported a loss of Tk114 crore in the first nine months of 2025, despite achieving double-digit growth in sales during the period.

According to its unaudited financial statement published on Thursday, the company's turnover increased by 15% year-over-year to Tk1,784 crore between January and September, reflecting strong demand for its products. However, the gains in revenue were offset by rising costs, higher expenses, and increased finance charges, pushing the firm into losses.

In the July-September quarter alone, Singer Bangladesh posted Tk413 crore in revenue, up 15% from a year earlier, but suffered a loss of Tk47.93 crore – 158% higher than the loss recorded in the same quarter of 2024.

The company attributed the decline in profitability to a 1.8% fall in its gross profit margin.

Although turnover grew, Singer said it could not increase product prices enough to offset higher average production and promotional costs, as doing so would have made its products less competitive.

Operating expenses increased by 13.9% compared to the previous year, primarily due to higher expenditures on advertising, sales promotions, warranty claims, depreciation, and bad debt provisions. Operating profit dropped 9.8% in the third quarter from a year earlier.

Finance costs surged by nearly 119% due to increased short-term borrowing, while interest expenses on loans jumped by 179.6% after the capitalisation period for its foreign loan ended in March 2025.

The company said these loans were used to finance a new manufacturing plant under the Bangladesh Economic Zones Authority (Beza), which is expected to triple its production capacity and enhance cost efficiency in the coming years, helping to restore profitability over the medium term.