Here’s How Singer Achieved 614.1% YoY Profit Growth In 20231 min read

Singer, a leading consumer durables retailer in Bangladesh, has demonstrated impressive financial performance for the year 2023. After facing challenges in maintaining profitability due to the global coronavirus pandemic, the company is now evidencing signs of resurgence amid the tough macroeconomic climate of Bangladesh.

In 2023, Singer announced a profit of Tk 522.1 million, a figure sixfold greater than that of 2022. Let’s explore the key factors behind this remarkable recovery.

Double-digit Gross Profit Growth

Despite a slight decline in sales, Singer achieved substantial growth in gross profit in 2023. The company reported sales amounting to Tk 17,033.1 million for the year, marking a modest 0.4% decrease from 2022.

Read more: Singer Bangladesh Launches The Country’s First Concept Store

This trend isn’t unexpected, given the significant macroeconomic challenges faced by the country, including high inflation, increased interest expenses, and the depreciation of the local currency. In such periods of high inflation, consumers often postpone purchases of durable goods, prioritizing essential items instead.

White and Brown Minimalist Real Estate Business Card49

White and Brown Minimalist Real Estate Business Card50

Yet, the company managed to secure double-digit growth in gross profit, primarily driven by an enhancement in gross profit margins. These margins rose from 23.0% in 2022 to 28.8% in 2023. The lower gross profit margin in 2022 was a result of the company providing greater discounts to boost sales.

White and Brown Minimalist Real Estate Business Card51

Heightened Operational Efficiency Fuels Sixfold Profit Increase

In the face of rising inflation, the company successfully managed its operating expenses, which saw a 13.6% year-over-year increase in 2023. Consequently, Singer’s operating profit soared by 56.8% year-over-year, reaching Tk 1,478.2 million in 2023.

White and Brown Minimalist Real Estate Business Card52

The substantial increase in operating profit, coupled with a modest rise in financing expenses, culminated in a profit of Tk 522.1 million in 2023. Financing expenses grew by just 10.0% year-over-year to Tk 604.1 million in 2023.

White and Brown Minimalist Real Estate Business Card53

For more updates, be with Markedium.

Check Out
0 0 votes
Article Rating

Get real time updates directly on you device, subscribe now.

You might also like
Subscribe
Notify of
guest

0 Comments
Inline Feedbacks
View all comments
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

0
Would love your thoughts, please comment.x
()
x
SUBSCRIBE TO OUR NEWSLETTER

SUBSCRIBE TO OUR NEWSLETTER

Join our mailing list to receive the latest news and updates from Markedium!

You have Successfully Subscribed!