Business Desk: dhakamirror.com
Although Singer Bangladesh logged higher sales between July and September this year, the company still incurred losses in the quarter, according to a press release.
Sales of the multinational electronic and home appliance company were 12.8 per cent higher at Tk 520 crore in the July-September quarter compared to the same period of the previous year.
However, Singer’s profit decreased from Tk 59.5 crore to Tk 14.6 crore at the same time with its earnings per share decreasing from Tk 5.97 to Tk. 1.46 as a result.
The profit dropped because of losses in the July-September period, when the company’s earnings per share stood Tk 0.85 in the negative.
Singer’s profits decreased as it has lost a 5.1 percentage point gross margin compared to the same quarter of last year mainly due to significant cost increases that could not be adjusted with the sales price, the company said.
The sales price was not raised due to market sensitivity, both from the consumer and competitors’ end, it added.
Expenses were also higher in the period compared to last year, mainly for the utilisation of borrowing at a higher level and with higher interest rates as well.
Singer continued to focus on managing operating expenses, which slid down to 17.5 per cent of its revenue in the third quarter while it was 19.3 per cent at the same time last year.
Negative profit in the third quarter resulted in the company’s strategy to remain competitive in the market because of sensitivity both from the consumers and competitors end. The company’s stocks listed with the Dhaka Stock Exchange remained unchanged yesterday at Tk 151.9.
Singer commenced operations in the region in 1905. Having started the journey with a reputation for making quality sewing machines, the company now has 437 stores in the country.
Singer Bangladesh is 57 per cent owned by Retail Holdings Bhold BV of the Netherlands.