Singer to begin trial export of wire harnesses

Singer Bangladesh Ltd yesterday said that its board had approved the trial export of wire harnesses to its sister company Beko Romania, marking the official start of its export operations.

This move follows the launch of commercial production at Singer's new home appliance plant in the Japanese Economic Zone in Narayanganj.

In the second quarter of this year, Singer reported a loss due to higher production costs that squeezed its gross profit margin.

According to financial statements, Singer posted a loss of Tk 31 crore for the April-June period, compared with a profit of Tk 25.71 crore in the same quarter last year.

Loss per share stood at Tk 3.11, a decline from earnings per share of Tk 2.58 recorded in the second quarter of 2024.

Despite a 15.4 percent rise in turnover during the quarter, the company's gross profit margin fell as it struggled to offset climbing production costs.

"The selling price could not be increased or adjusted to absorb the increased average product cost, which led to a decrease in gross profit margin in order to remain competitive," the company said in the statements.

In the second quarter of this year, Singer reported a loss due to higher production costs that squeezed its gross profit margin

Singer pointed to various promotional offers and discounts, among other reasons, for the rise in product costs.

Operating profit fell by 5.1 percent year-on-year, with operating expenses jumping 14 percent. The increase was driven by heavier spending on advertising and sales promotions, higher bank charges, warranty claims, and demurrage fees.

Singer said its net finance costs soared by 175.1 percent, fuelled by a 15.9 percent increase in short-term borrowings. Rising interest rates added further pressure.

Additionally, foreign exchange movements worsened the situation as the euro depreciated by 4.2 percent against the taka since May 2025.

Singer Bangladesh and Beko Romania are both subsidiaries of Arçelik AŞ, based in Turkey.

As of June 30, 2025, sponsors and directors held 57 percent of Singer's shares, institutional investors 30.36 percent, and the general public 12.64 percent, according to DSE data.