Singer incurs Tk16cr loss in H2 2022 for inflationary pressure

Singer Bangladesh Limited incurred Tk16 crore loss in the July-December period of 2022 as it could not meet its sales target when consumers tightened their purse strings to cope with soaring inflation by spending mainly on essential goods rather than home appliances.

According to the company's financial statement, Russia's invasion of Ukraine has hampered the prospects of a post-pandemic recovery. Economic activities were also hampered as freight, energy and food price shocks continued to make adverse impacts. The situation was worsened by the significant depreciation of taka against the US dollar.

But the significant cost hike could not be adjusted with the selling prices. The competition was not supporting the full-scale price increase, as competitors were not reacting in line with expectations, said the multinational electronics and home appliances company in its report.

As a result, Singer Bangladesh lost more than 5% gross margin, which led to a loss in the second half of the last year.

Besides, it declared a 10% cash dividend to its shareholders for the year of 2022, which was the lowest dividend in its history.

At the end of the last year, its earnings per share stood at Tk0.73, which was 86% lower compared to the previous year.

To approve the audited financial statement and dividend, it will conduct the annual general meeting (AGM) on 11 April this year. The record date is 16 February for the AGM.

Singer was listed on the Dhaka bourse in 1983. Following the founding Dutch family's divestment, Singer came under the control of its Turkish acquirer Arcelik in 2019.

The company's share price now remains stuck at the floor price of Tk151.90 on the Dhaka Stock Exchange.