Singer Bangladesh Limited has recently announced its unaudited financial results for the second quarter ending June 30, 2024.
The company reported a turnover of Tk. 11.9 billion, reflecting an 8.8% increase compared to Tk. 10.9 billion in the same period last year. This growth was driven by two Eid festivals and a hot summer during Q2 2024. Gross profit remained steady at Tk. 3.1 billion, similar to Q2 2023. However, the gross profit margin decreased to 25.9% from 28.2% last year, a decline of 2.3%, mainly due to increased costs and foreign exchange impacts.
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The margin was lower by 2.8% compared to the previous year, affected by higher sales of trade goods including locally sourced products, increased discounts, and promotional activities. The product SKU and sales channel mix also negatively impacted the margin. Operating expenses rose to 17.7% of turnover compared to 17.0% last year. This increase was due to higher advertisement and sales promotion costs, shop operating expenses including new shops, rent, repair and maintenance expenses of the new factory, and IT-related expenses.
Finance costs surged by 83.9% due to a more than 4% rise in interest rates, representing a 45.7% increase compared to last year, and a 27.5% increase in short-term borrowing utilization. Additionally, a significant currency depreciation in May 2024 (approximately 7%) resulted in a foreign exchange loss.
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Profit after tax decreased to Tk. 236 million from Tk. 583 million in Q2 2023. Earnings per share declined from Tk. 5.85 to Tk. 2.37. The effective tax rate for Q2 2024 was 35.2%, up from 34.2% in Q2 2023.
Net operating cash flow per share (NOCFPS) improved significantly to Tk. 5.93, compared to (Tk. 2.58) in Q2 2023. Singer Bangladesh Limited continues to navigate economic challenges while focusing on growth and efficiency improvements.
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