Singer’s Q3 profit crashes
Profits of Singer Bangladesh, a listed multinational home appliance manufacturer, suffered a year-on-year crash in the July-September period of the current year for a slump in sales amidst the pandemic.
Net profit nosedived 70 per cent to Tk 12.72 crore from Tk 42.63 crore in the same period the previous year, according to the company's quarterly financial report published yesterday after a board meeting.
Meanwhile, sales dropped 26 per cent to Tk 460 crore from Tk 625 crore. Earnings per share stood at Tk 1.28 whereas it was Tk 4.28 a year earlier.
In the first quarter of the year, sales exceeded expectations thanks to positive customer behaviour and turnouts, the company said in its financial report.
Sale of cooling products and demand for computers, sewing machines and others were higher than anticipated.
Promotional activities were also run to actualise market demand and increase sales.
"But second wave of the COVID-19 pandemic has struck again during April and the government has imposed various restrictions, including lockdown which was continuing during June and July, 2021, on stage by stage which adversely affected all the business activities," said the company.
Due to the district-wise lockdowns, sales targets were not achieved for the month of April and May. It again happened in June and July for the continuation of the lockdown.
With restriction easing from August 11, business returned to normalcy and August's results were higher than expected, it said.
Positive customer behaviour was noticed after the relaxation and higher sales were made compared to expectations for September, it added.
A fall of the company's profit and sales was also witnessed in the previous year.
Sales dropped to Tk 1,495 crore in 2020, which was TK 1,537 crore in the preceding year. Profits also slid to Tk 80 crore from Tk 103 crore.
Yesterday, stocks of Singer Bangladesh dropped 0.60 per cent to Tk 183.
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