Singer Bangladesh Limited announced its unaudited results for the 1st quarter ended March 31, 2024.
The first quarter turnover increased to Tk400 crore compared to the previous year's Tk370 crore, a growth of 7.3%.
Gross profit increased to Tk101 crore from Tk99.8 lakh, an increase of 1.7% from the previous year.
Gross profit margin for Q1 2024 was lower than last year by 1.4% because of an increase in the sale of trade goods, forex devaluation, higher discounts, and promotional activities.
However, increased costs have not been reflected in prices in Q1, 2024 at the expected level due to intense competition.
Operating expenses of Q1'24 were higher than last year, which is 21.8% against 19.7% last year due to an increase in advertisement& sales promotions (some initiatives will result in Q2 and onward), inflationary shop operating expenses including new shops, salary increments, repair and maintenance for the new factory.
Finance costs have increased by 44.7% in Q1'24 due to the higher level of borrowing being utilized at higher interest rates.
The average interest rate has increased more than 3.5% compared to last year's same period.
Profit/(loss) after tax decreased to (Tk2.1 crore) from Tk11.2 crore in 2023, with earnings per share decreased from Tk1.13 to (Tk0.21).
Due to the minimum tax provision, the company is required to make a provision for Tk2.41 crore as minimum tax impact.
However, the effective tax rate in the current quarter is expected to decrease considerably and improve in the coming quarters.
Net operating cash flow per share stands at (Tk3.84) in Q1'24 against (Tk10.11) in Q1'23.
Considering the nature of business in terms of hire purchase scheme, credit extended to dealers & institutions and seasonal effects, operating cash flow goes into negative and it is expected to improve during the third/fourth quarters.
According to Singer Bangladesh's board members, during the reporting period, the cost of sales increased driven by the devaluation of Taka against the US dollar and the increase in sales of trade goods.
Singer's strategy is to maintain competitiveness in the market, therefore, increased costs have not been reflected in the prices at the expected level due to intense competition, they also said.
Despite these challenges, Singer is strongly present in the appliances market and will further accelerate its operation in the medium to long term. By leveraging its global expertise, scale, and knowledge, Singer will work to enhance its already strong market position with its strong brand image, they added.