Singer Bangladesh secures Beza approval for commercial operation of new plant

Singer Bangladesh has announced that the Bangladesh Economic Zones Authority (Beza) has granted commercial operation approval for its new plant located at the Bangladesh Special Economic Zone in Narayanganj.

The multinational home appliance manufacturer announced to the Dhaka Stock Exchange (DSE) today it secured the approval from Beza on 24 February.

Following the announcement, its share price jumped by 2.59% to reach Tk107.

Built in 2022 with a $78 million (approximately Tk800 crore) investment, the factory, situated on a 135,000 square meter industrial plot, aims to revolutionise local manufacturing by producing 90% of its products domestically.

This is the first investment in Bangladesh by Arçelik, the flagship company of Turkey-based Koç Group, which acquired Singer Bangladesh in 2019.

With an initial annual production capacity of 15 lakh units, the plant manufacturing home appliances including refrigerators, televisions, washing machines, air conditioners, and other major appliances, according to the company's annual report for 2023.

In addition to boosting production capabilities, the new factory has created approximately 4,000 jobs.

Singer suffers loss in 2024

For the first time in its history, Singer Bangladesh recorded an annual loss of Tk49 crore in 2024, representing a significant downturn for the company.

Due to these losses, the board has proposed reducing the dividend payout to 10% cash, a sharp decline from the 35% dividend declared in the previous year. 

The company reported a loss per share of Tk4.91 for the year, reflecting the challenging economic environment it navigated.

Despite the losses, Singer Bangladesh achieved a revenue of Tk1,870 crore in 2024, representing a 9.5% increase from the previous year's Tk1,700 crore.

However, the company noted that sales fell short of expectations due to a combination of local and international challenges, including decreased consumer purchasing power driven by sustained double-digit inflation.

In its financial statement, the company highlighted several obstacles that impacted its performance throughout the year. These included the devaluation of the taka against foreign currencies, difficulties in opening letters of credit (LCs), rising finance costs, and broader economic challenges. These factors collectively strained the company's operations and profitability.

Singer Bangladesh has scheduled its annual general meeting for 22 April, where shareholders will vote to approve the proposed dividend and discuss the company's financial performance and future strategies.