Singer Bangladesh Limited has reported a larger loss in the first quarter of 2026, despite a 3.4 per cent increase in turnover, which stood at Tk580 crore.
The company posted a net loss of Tk55.9 crore, or a negative earnings per share of Tk5.60, compared to a loss of Tk3.50 per share in the same period last year.
According to the company, despite the higher turnover, rising finance costs, weak consumer demand, and increased working capital pressures have weighed on profitability. These issues led to a sharp deterioration in key financial indicators.
Net asset value per share fell to a negative Tk3.91 at the end of March 2026, down from a positive Tk21.31 a year earlier. This comes as a consequence of a massive Tk22.56 loss per share in 2025. In the first quarter, its operating cash flow also dropped significantly, with net operating cash flow per share dropping to a negative Tk21.42, compared to a positive Tk4.79 in the same quarter last year.
The company attributed this performance to several factors, including its hire purchase model, extended dealer credit, and seasonal effects. However, Singer remained hopeful that cash flow would improve from the second quarter of 2026.
On the operational front, while gross margins remained stable, operating profit fell by 8.1 per cent. The decline was driven by higher costs, including rent, depreciation, and salaries, which could not be fully passed on to consumers due to price sensitivity in the market.
According to a Singer press release, its domestic sales were affected by a combination of factors, including high inflation, geopolitical tensions, unfavourable weather conditions, the national election, and extended Eid holidays that weakened demand for consumer durables.
Financial pressures were exacerbated by a 41.4 per cent increase in net finance costs, largely driven by a nearly 50 per cent rise in interest expenses. Higher short-term borrowings for working capital and business expansion were central to the increased costs. Additionally, the depreciation of the Bangladeshi Taka against the euro led to foreign exchange losses on inter-company loans.
The company’s balance sheet also reflected strain, with inventory rising by 28.2 per cent due to lower-than-expected sales. This, in turn, pushed up short-term borrowings. Trade receivables increased by 38.5 per cent, driven by seasonal credit renewals and slower collections amid weak economic activity and the ongoing political transition.
Despite a modest revenue growth, Singer highlighted a mismatch between expected and actual sales, particularly in the consumer electronics market, which has remained sluggish.
Singer’s shares, with a face value of Tk10, dropped by 6.62 per cent on the Dhaka Stock Exchange on Thursday.
In the statement, the company outlined its ongoing investments in strategic projects, including the development of a state-of-the-art manufacturing facility at the Bangladesh Special Economic Zone (BSEZ), expansion of in-house air conditioner production, and growing export capabilities. Singer expressed confidence that these investments will lay the groundwork for long-term, sustainable growth.
Emerging Credit Rating Limited has affirmed the company’s long-term surveillance rating at “A+” and short-term rating at “ST-3,” with a stable outlook, based on annual audited financial statements up to 31 December 2025 and other relevant data.
The company is focused on capitalising on market opportunities through product innovation, enhanced retail experiences, and stronger customer engagement, backed by its dual-brand strategy and continued investment in local manufacturing, according to its statement.
Singer Bangladesh is a subsidiary of Beko, the flagship of Türkiye’s Koç Holding.
