Singer Bangladesh Limited Sees 60% Decline In H1 2024 Net Profit Amid Rising Costs

Singer Bangladesh Limited (SBL), one of the leading consumer electronics and home appliance retailers in Bangladesh, has reported a notable financial performance for the first half of 2024, showcasing strong growth across key financial metrics.

Impressive Sales Growth

For the period from January to June 2024, SBL reported total sales of BDT 11.86 billion, a 9% increase from BDT 10.91 billion in the same period of 2023. This robust growth is attributed to increased consumer demand and successful marketing campaigns, coupled with an expansion in product offerings.

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Strong Gross Profit Margins

The gross profit for H1 2024 stood at BDT 3.07 billion, marking a slight decrease from BDT 3.08 billion in H1 2023. Despite the marginal dip, SBL managed to maintain a solid gross profit margin amidst rising cost pressures, with the cost of sales increasing by 12% to BDT 8.81 billion from BDT 7.84 billion in the previous year.

Operating Profit and Net Finance Costs

SBL’s operating profit for the first half of 2024 was BDT 907 million, down from BDT 1.22 billion in H1 2023. The decline in operating profit can be attributed to higher operating expenses, which rose to BDT 2.27 billion from BDT 1.96 billion a year ago. Net finance costs remained steady at BDT 525 million, mirroring the previous year’s figures.

Profit Before and After Tax

The company’s profit before taxation for H1 2024 was BDT 364 million, significantly down from BDT 886 million in H1 2023. This decrease was influenced by increased contributions to the workers’ profit participation fund and higher operating expenses. The income tax expense for the period was BDT 128 million, resulting in a net profit after tax of BDT 236 million, compared to BDT 583 million in the same period of the previous year.

Quarterly Performance

In the second quarter of 2024, SBL reported sales of BDT 7.86 billion, up from BDT 7.17 billion in Q2 2023. The gross profit for the quarter was BDT 2.06 billion, slightly below BDT 2.08 billion in Q2 2023. Operating profit for the quarter was BDT 728 million, a decrease from BDT 918 million in the previous year. Notably, the company recorded a net profit after tax of BDT 258 million for Q2 2024, an improvement from BDT 471 million in Q2 2023.

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