Following the disrupted sales, profits and cash flow in the third (July-September) quarter due to the pandemic, Singer Bangladesh absorbed losses in the fourth quarter of 2021, according to a disclosure of the company on Tuesday.
The multinational electronics and home appliances company posted an annual profit of TK51.85 crore for the year, which was the lowest in the last six years.
The profit was on the decline after a milestone in 2019 – surpassing the Tk100 crore mark.
However, the company generated revenue of Tk1,332 crore in the first three quarters (January-September) of 2021 that yielded Tk59.5 crore in profit after taxes, slightly higher year-on-year, even in ups and downs in business amid Covid-induced restrictions.
In the last quarter (October-December), the company made Tk7.65 crore loss, despite no lockdown. A fall in cooling products sales and other home appliances was the key reason, insiders said.
The Business Standard tried to contact Singer Bangladesh Company Secretary Kazi Ashiqur Rahman to learn about its fourth-quarter performance, but he could not be reached.
However, equity analysts said the electronics and appliances industry suffered from price hikes in raw material, intermediary raw material and freight costs in the late last year amid the reopening of the country's economy.
As the Bangladesh market was very competitive, most of the brands could not increase their product prices proportionately, they added.
Walton, the market leader in the industry also posted lower profits for the October-December quarter and its officials blamed cost escalation amid no price hike.
Singer Bangladesh posted Tk5.2 in its annual earnings per share (EPS) for 2021, which was Tk8.06 in 2020. Its net asset value per share stood at Tk34.06 at the end of December.
Singer shareholders are set to get 60% cash dividends for 2021, which was 30% in 2020 from 77% in 2019.
Singer, one of the oldest companies in Bangladesh, initially ruled the sewing machine market and later, it entered into the electric and electronic home appliances businesses.
The company was listed in the Dhaka bourse in 1983. Following the founding Dutch family's divestment, Singer came under the control of its Turkish acquirer Arcelik in 2019.
Singer shares having the face value of Tk10 each closed 1.08% lower at Tk174.2 on Tuesday on the Dhaka Stock Exchange.