Singer Bangladesh Limited announced its unaudited results for the 1st quarter ended March 31.
Q1, 2024 turnover increased to Tk 4 billion compared to the previous year’s Tk. 3.7 billion, a growth of 7.3%. Q1, 2024 Gross profit increased to Tk. 1.01 from Tk. 998 million, an increase of 1.7% from the previous year.
Gross profit margin for Q1 2024 was lower than last year by 1.4% because of an increase in the sale of trade goods, forex devaluation, higher discounts, and promotional activities. However, increased costs have not been reflected in prices in Q1, 2024 at the expected level due to intense competition.
Operating expenses of Q1, 2024 were higher than last year, which is 21.8% vs 19.7% last year due to an increase in advertisement & sales promotions (some initiatives will result in Q2 and onward), inflationary shop operating expenses including new shops, salary increments, repair & maintenance for the new factory.
Finance costs have increased by 44.7% in Q1 2024 due to the higher level of borrowing being utilized at higher interest rates. The average interest rate has increased more than 3.5% compared to last year’s same period.
Profit/(loss) after tax decreased to (Tk. 21) million from Tk. 112 million in 2023, with earnings per share decreased from Tk. 1.13 to (Tk. 0.21).
Due to the minimum tax provision, the company is required to make a provision for Taka 24.1 million as minimum tax impact. However, the effective tax rate in the current quarter is expected to decrease considerably and improve in the coming quarters.
Net operating cash flow per share stands at (Tk. 3.84) in Q1 2024 against (Tk. 10.11) in Q1 2023. Considering the nature of business in terms of hire purchase scheme, credit extended to dealers & institutions and seasonal effects, operating cash flow goes into negative, and it is expected to improve during the third/fourth quarters.
