Singer announces 615% profit growth in 2023; declares 35% cash dividend

Singer Bangladesh Limited (Singer) has reported a remarkable 615% growth in profits for the year 2023, defying industry-wide challenges and de-growth trends, reads a press release. 

Despite facing various hurdles, including Taka devaluation, LC openings, increased finance costs, and supply chain disruptions due to the Russia-Ukraine war and political turbulence during the National Parliamentary Election, the company successfully navigated the complexities of the year.

After releasing the audited results, Singer's Board of Directors declared a 35% cash dividend for 2023 on Monday (29 January).

The company strategically implemented a robust pricing policy, expense optimisation, and a shift from trading goods to manufacturing, leading to a significant increase in the gross profit margin from 23.0% to 28.8% compared to the previous year.

The audited results revealed a noteworthy surge in profit after tax, soaring from Tk73 million in 2022 to Tk522 million in 2023, marking a phenomenal 615% increase. 

Earnings per share rose from Tk0.73 to Tk5.24, and the net operating cash flow per share stood at Tk22.76 in 2023, up from Tk18.19 in 2022. 

Despite the financial challenges, Singer achieved a commendable revenue of Tk17 billion by the end of 2023.

Acknowledging higher financial expenses attributed to a 2% increase in the average interest rate, the company demonstrated resilience by remaining competitive in the market, considering both consumer and competitor price sensitivity.

In a press release, the board of directors claimed that Singer is strongly present in the appliances market and will further accelerate its operation in the medium to long term.

"Leveraging its global expertise, scale, and knowledge, Singer aims to enhance its market position and capitalize on its robust brand image," they said. 

Singer Bangladesh, a major retailer of consumer durables in the country with 451 retail stores, is 57.0% owned by Retail Holdings Bhold BV in the Netherlands, a subsidiary of Arcelik AS in Turkey. Arcelik, a global consumer durables leader with 14 brands and operations in 53 countries, is a subsidiary of Koc Holding, the only Fortune 500 company in Turkey. With 30 R&D centers globally and over 2,300 researchers, Arcelik's flagship brand, BEKO, ranks among the Top 3 brands in Europe.