Musician experiences Tk66 crore loss in first half of the year despite revenue increase
Singer Bangladesh Struggles with Losses Amidst Higher Costs and Unchanged Prices
Singer Bangladesh Limited, a leading home appliances manufacturer, reported a net loss of Tk66 crore in the first half of 2025, a stark contrast to the profit of Tk23.60 crore in the same period last year. The substantial loss was primarily due to higher operating costs and increased interest expenses, according to company reports.
Despite a significant 15.4% increase in revenue to Tk1,371 crore for the period from January to June 2025, the company could not raise product prices to offset the increased average costs. This decision was made to maintain competitiveness in the market.
Cost Pressures and Unchanged Prices
Higher operating costs were a key factor in the loss, with costs increasing due to more spending on advertisements, sales promotion, and other operating expenses, which rose by 14% year-on-year in Q2 2025. Finance costs soared by 175.1% in the first half of 2025, primarily due to higher short-term loan usage and rising interest rates.
The construction of a new manufacturing facility at BSEZ, funded by the loans, is expected to triple production capacity, lower costs, and improve profitability by the end of 2025. However, in the short term, this strategic move has led to increased expenses and loans, pushing the company into losses.
Export Milestone
Despite the challenges, Singer Bangladesh achieved a significant milestone with the export of the first trial shipment of wire harnesses to Beko Romania, a subsidiary of Arçelik AS, Turkey. This marks the beginning of Singer Bangladesh's export activities and highlights the company's improved manufacturing capacity.
The gross profit margin declined by 1.7% compared to Q2 2024, due to selling prices not being adjusted to absorb higher product costs. The cost of goods sold surged by 18.03% to Tk1,039 crore, leading to the loss for the period.
The company's share price closed at Tk118.60 on the Dhaka Stock Exchange on Thursday. No evidence from the search results suggests any external macroeconomic crisis or governance issues specifically affecting Singer Bangladesh in this period.
In the April-June quarter alone, revenue stood at Tk812 crore, but the company recorded a loss of Tk31.06 crore. The loans have funded the construction of the new, state-of-the-art manufacturing facility at BSEZ, which is expected to contribute to the company's profitability by the end of 2025.
Interest on long-term foreign loans (IC Foreign Loan and Syndicate Loan) no longer being capitalised and being recorded directly as expenses contributed to the increased interest costs. The export of the first trial shipment officially marks a new chapter for Singer Bangladesh in the international market.
Pressure in Business & Financial Sector
The increased interest expenses and operational costs indicate a challenge in the finance and business sectors for Singer Bangladesh Limited, a leading home appliances manufacturer.
Despite an increase in revenue, the company's losses highlight the strain on profitability due to the rise in costs and unchanged prices in the industry.
