Singer reports Tk66cr loss in H1 despite revenue growth
Escalating costs, sharp rise in interest expenses, forex losses cited as reasons
Singer Bangladesh Limited has reported a substantial loss of Tk66 crore in the first half of 2025, a stark contrast to a Tk23.60-crore profit recorded in the same period last year, despite a 15.4% year-on-year increase in revenue.
The deficit was primarily attributed to escalating costs, a sharp rise in interest expenses, and significant foreign exchange losses.
According to the company's financial statement, the home appliance company generated a revenue of Tk1,371 crore for the period spanning January to June 2025, marking a 15.4% improvement from Tk1,188 crore in the corresponding period of the previous year.
However, the cost of goods sold surged by 18.03% to Tk1,039 crore, up from Tk881 crore a year earlier, to achieve this revenue. This led to the loss for the period.
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Its finance costs soared by 176% to Tk144 crore from Tk52 crore a year ago, while operating expenses also climbed by 14% to Tk258.11 crore from Tk227 crore. Consequently, Singer Bangladesh posted a per-share loss of Tk6.61 for the first half of 2025, a downturn from earnings per share of Tk2.37 in the same period last year.
In the April–June quarter alone, revenue stood at Tk812 crore, up slightly from Tk787 crore in the same quarter last year. However, the company recorded a loss of Tk31.06 crore in the quarter, compared to a profit of Tk25.72 crore in the same period of 2024.
Its turnover grew by 15.4% in 2025, but the gross profit margin declined by 1.7% compared to Q2 2024. Selling prices were not adjusted to absorb higher product costs, leading to margin erosion as the company aimed to remain competitive. Increased discounts, offers, and promotions raised costs further, while the product mix and sales channels also negatively impacted margins.
Its operating profit fell by 5.1% as spending on advertising, promotions, bank charges, warranty claims, and shipping demurrage increased. Overall operating expenses climbed by 14%, putting further pressure on profitability.
Its finance costs soared by 175.1%, driven by higher short-term loan usage and rising interest rates. From March 2025, interest on long-term foreign loans (IC Foreign Loan and Syndicate Loan) stopped being capitalised and began to be recorded directly as expenses, further inflating interest costs.
Currency movements also had a major impact. Since May 2025, the euro has depreciated by 4.2% against the taka. A Tk27.59 gap between the loan realisation rate and the June 2025 closing rate resulted in large unrealised exchange losses on IC loans from Arçelik, further driving up finance costs.
Despite these challenges, the loans have funded the construction of a new, state-of-the-art manufacturing facility at BSEZ. This strategic investment is expected to triple production capacity, lower costs, and improve profitability by the end of 2025.
The share price of the company closed at Tk118.60 on the Dhaka Stock Exchange on Thursday.
Export of first trial consignment
In a separate development, the Board of Directors of Singer Bangladesh has approved the export of its first trial shipment of wire harnesses to Beko Romania, a subsidiary of Arçelik AS, Turkey, which is Singer Bangladesh's ultimate parent company, according to the company disclosure.
This milestone comes after Singer Bangladesh recently started commercial production at its new, state-of-the-art home appliances plant.
Singer Bangladesh states that this achievement highlights the company's improved manufacturing capacity and officially marks the beginning of its export activities, opening a new chapter for it in the international market.
