Singer posts Tk 47.9 crore loss in Q3 as costs, weak taka hit profits

Singer Bangladesh Ltd reported a loss for the third quarter of 2025 as higher borrowing costs and a weaker taka wiped out the gains from increased sales.

The home appliance maker incurred losses of Tk 47.9 crore during the July-September period, up 159 percent year-on-year.

With this, the company's cumulative losses rose to Tk 114 crore in the nine months to September, reversing from a profit of Tk 5 crore in the same period a year earlier, as per its financial statement posted today.

Its earnings per share (EPS) stood at a negative Tk 4.81 for the third quarter, more than double the loss per share of Tk 1.86 recorded a year ago.

The financial statement notes that for the first nine months of 2025, Singer's loss per share widened to Tk 11.42. During the period, the company's finance costs more than doubled, rising by 116 percent year-on-year to Tk 191.95 crore.

The increase came mainly from higher interest charges on long-term foreign and syndicated loans, and from greater reliance on short-term borrowing. Interest expenses alone jumped 180 percent following the capitalisation of foreign loans in March this year.

Adding to the pressure, the depreciation of the taka by 4.2 percent against the euro since May caused large unrealised foreign exchange losses. A 23.5 percent gap between loan realisation and closing rates in September led to a big rise in finance costs, said the company.

According to its disclosure, the foreign loans were taken from Arçelik, Singer's parent company, to fund a new manufacturing plant at the Bangladesh Special Economic Zone. The facility is expected to triple production capacity in the coming years, though it has temporarily increased financial strain.

Singer's sales revenue has grown by 15.2 percent so far this year, but the gross profit margin, which measures a company's earnings relative to its revenue, fell by 1.8 percentage points compared with last year's third quarter.

It said higher input costs, promotional offers, and discounts reduced profitability.

Operating expenses also rose by 13.9 percent, mainly due to higher spending on marketing, warranty claims, depreciation, and bad debts.

Despite the earnings setback, Singer's net operating cash flow improved significantly, rising to Tk 14.48 per share in the January-September period from negative Tk 7.36 a year earlier.

The company attributed this to prudent supplier management and stronger sales collections.