Singer Bangladesh has experienced a concerning increase in operating expenses, particularly in shop operating costs and demurrage expenses. This rise has led to a 211 basis point increase in operating expenses as a percentage of sales from 15.81% in H1 2022 to 17.93% in H1 of the current year, potentially squeezing profit margins.
Although the company delivered a remarkable 153% increase in year-on-year profit in H1 2023, it struggled with declining profitability from 2020 to 2022 due to unfavorable macroeconomic conditions. Singer has seen revenue growth of 17.93% in H1 2023, driven by higher market prices, Eid-ul-Adha season, and a gradual recovery in consumer electronics demand. Despite challenges, it has maintained a strong dividend payout ratio historically.
Singer Bangladesh aims to increase the proportion of locally manufactured products to 90%. However, its capacity utilization across segments remains underutilized, indicating potential inefficiencies. The company anticipates a boost in panel television sales in Q3 due to the Cricket World Cup. Singer Bangladesh is 57% owned by Retail Holdings Bhold BV (Netherlands) and is publicly traded on the Dhaka and Chittagong stock exchanges.
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