Singer Bangladesh, a listed multinational electronics and home appliance seller, saw a massive year-on-year rise in losses in the first quarter of fiscal year 2025 despite registering higher sales, attributing it mainly to high bank loan and operating costs.

 The company reported a loss of Tk 34.89 crore in the latest January-March quarter, a sharp increase from a Tk 2.11 crore loss in the same period a year earlier.

 However, sales rose 39 percent year-on-year to Tk 557.85 crore, according to its financial statements.

 "While the turnover of the company increased, its gross profit margin has decreased by 1.8 percent year-on-year," reads the financial report.

 It was due to an increase in average product cost, including various offers, discounts, and promotions, whereas the selling price has not been increased or adjusted accordingly, it added.

 "Moreover, selling price has been decreased for major products to remain competitive," it said.

 Its operating profit has decreased by 3.7 percent compared to the same period of 2024, mainly due to an increase in advertisement and sales promotions, bank charges, and warranty expenses.

 Meanwhile, the overall operating expenses have increased by 38 percent.

 Finance costs have also increased by 145 percent due to an increase in short-term borrowing, coupled with an increase in interest rates by more than 3.5 percentage points compared to that in Q1 of 2024, it said.

 Income tax expenses have also increased by 108.4 percent due to minimum tax and deferred tax expenses, the company said.

 Singer Bangladesh Limited was once one of the most popular household brands for its sewing machines. It manufactures and markets many types of consumer electronics and household appliances.

 Singer's operations in Bangladesh date back to 1905. It expanded its footprint by opening shops in Dhaka and Chattogram by 1920.

 Once Bangladesh gained independence in 1971, the company transitioned from a branch of Singer Pakistan to a country office, and by 1979, it was registered as an operating company, as per its website.

 It has been a direct subsidiary of Beko Bangladesh BV, the Netherlands (formerly Retail Holdings Bhold B.V., the Netherlands) since 2003.

 Its loss per share stood at Tk 3.50 in the first quarter of 2025, up from a loss per share of Tk 0.21 in the corresponding quarter of 2024.

 The company's net operating cash flow per share (NOCFPS) improved to Tk 4.79 from negative Tk 3.84.

 The improvement in the NOCFPS was attributed to better control of supplier payments in line with annual targets and improved collections from sales proceeds, Singer said in a disclosure on the Dhaka Stock Exchange (DSE) website yesterday.

 As Singer operates a hire purchase-based business model, credit collection from dealers and institutions also influenced the positive operating cash flow, it added.

 As of March 31, 2025, sponsors and directors held 57 percent of Singer's shares, institutional investors 30.11 percent, and the general public 12.88 percent, according to the DSE data.

 Singer was listed on the DSE in 1983 and on the Chattogram Stock Exchange in 2001.

 Since diversifying into consumer durables in 1985, Singer has evolved into a multi-brand retailer operating through a broad network of retail outlets, dealers, and corporate partners.