Singer’s Profit Declined By 70.1% In Q3’212 min read
Singer Bangladesh Ltd one of the leading manufacturers & retailer of home appliances and consumer electronics have recently published its’ Q3 (Jul-Sep) financial report for the year 2021. As per the report, the revenue of the company was Tk 4,615.1 Mn in Q3’21 from Tk 6,272.0 Mn in Q3’20. Profit after tax decreased by 70.1% YoY to Tk 127.3 Mn in Q3’21 from Tk 426.4 Mn in Q3’20.
Revenue of Singer Bangladesh decreased by 26.4% YoY mainly due to strict lockdown imposed by the government. During Q3’21, Bangladesh went through the third and the most severe Covid-19 phase till now. As a result, government-imposed lockdown during the whole month of July and till 10th August. Business activities were adversely affected due to the lockdown.
Singer still posted 8.2% YoY revenue growth for the nine months of 2021. The growth was mainly driven by the revenue growth of Q1’21. During the first three months of 2021, consumer demand rebounded which increased the sale of cooling products than expected.
Gross profit also decreased by 26.4% YoY mainly due to lower revenue. Gross Profit was Tk 1,126.6 Mn in Q3’21 from Tk 1,531.2 Mn in Q3’20. Gross Profit margin stayed the same at 24.4% despite lower sales in the quarter.
Net Profit decreased by 70.1% YoY in Q3’21. The decline in profit is mainly driven by lower revenue. Operating Expense increased by 1.6% YoY from Tk 838.9 Mn in Q3’20 to Tk 852.2 Mn in Q3’21. Net Profit margin decreased by 4.0% from 6.8% in Q3’20 to only 2.8% in Q3’21. Net profit after Tax only declined by 5.2% YoY in the nine months of 2021.
As expected, Singer went through a tough third quarter due to the third phase lockdown. The covid-19 infection rate has gone down drastically since August. As the business activities have started to move at full speed it is expected that consumer demand will again rise. Hence, the revenue of the company is expected to grow if the business activities are not hindered by Covid-19.
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