Singer Bangladesh Ltd one of the leading manufacturers & marketer of home appliances and consumer electronics have recently published its annual report for the year 2020. As per the report, the revenue of the company was Tk 15,046.3 million which is a de-growth of -2.8% from 2019 (Tk 15,485.2 million).
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The decline in revenue is mainly due to the impact of Covid-19. Since the country was economically impacted by the pandemic the first spending which usually gets cut is the consumer durable products. Profit after tax was Tk 782.4 million in 2020 which was Tk 1,031.8 million in 2019 (De-growth of 24.2% YoY).
The above graph clearly indicates that the companyโs revenue was growing at an average rate of 22.5% before the Covid pandemic. The company was most affected in the second quarter (April- June) due to country-wide lockdown restrictions in the country. Effectively no sales were made during April & May and few sales were made during June. In Q2โ20, Singerโs revenue was declined by 23.7% YoY due to the lockdown restrictions. The company recovered very well in the second half of 2020 through aggressive sales initiatives for which the revenue decline was only 2.8%.
Singer Bangladesh Ltd is clearly focusing on its wholesale network to increase distribution around the country. Although retails outlets have increased by 70 within 5 years, the dealer number has more than doubled within the same timeframe.
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Segment-wise Performance
- Home Appliances: Home Appliance which contributed to about 67.4% of the total revenue in 2020 decreased by 8.2% YoY in 2019. In 2020, the revenue from this segment was Tk 10,137.0 million which was Tk 11,049.8 million. Air Conditioner which falls into the home appliance segment decreased by 28.2% YoY in 2020. Revenue from Air conditioner in 2020 was Tk 1,468.4 which was Tk 2,044.2 in 2019.
- Consumer Electronics: The segment contributed to about 17.2% of the total revenue. The Consumer Electronics segment grew by 1.4% YoY driven by 0.7% YoY growth in Television sales.
- Others: Sewing & Furniture sales declined in 2020 compared to 2019. Furniture sales took the most hit by declining 97.6% YoY (2020: Tk 4.0 million, 2019: Tk 169.2 million). Other Appliances segment grew by 67.3% YoY.
Future Ahead
2021 looks to be another uncertain ride for the company. Till Februaryโ21 it looked like the economy will rebound again due to the vaccination program & low coronavirus infection count. However, since Marchโ21 it looks like the second wave of Covid-19 has started in the country. On April 1, 2021, new infections skyrocketed to 6,469 which is the highest recorded in Bangladesh till now. If the government imposes restrictions like last year, then Singer Bangladesh revenue might not be on the growth trajectory the management would hope for. The companyโs new focus on E-commerce distribution might help in continuing operations even if new restrictions are imposed by the government.
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