Singer's earnings increase 30pc

Singer Bangladesh's earnings rose 30.3 percent year-on-year to Tk 900 crore in 2016 recording strong sales in all key product categories, the company said. 

Its gross profit increased 40.7 percent in the year with gross profit margins rising to 28.8 percent from 26.7 percent a year ago. 

Profit after tax went up 48.2 percent to Tk 54.63 crore. Its earnings per share rose to Tk 7.1, according to a statement of the company.

In addition, there was a gain on revaluation of property, plant and equipment amounting to Tk 17.19 crore.

The company announced 70 percent cash dividends, maintaining its long history of robust dividend payments. Gavin Walker, chairman of Singer Bangladesh, said, “2016 was a phenomenal year for the company, with record sales in all key product categories.”

“We now look forward to carrying this momentum into 2017. We have many exciting growth initiatives and new products to bring to the market.”

Throughout 2016, Singer continued to build upon the success of its factory operations for refrigerators, panel televisions, air conditioners and furniture, with further substantial increases in output and capacity being planned in 2017 and beyond.

The statement said Singer refrigerator range, with its modern R600a gas refrigerant, allows savings in electricity running costs up to 50 percent compared to most refrigerators available in Bangladesh that use R134a gas.

The number of Singer hire purchase accounts increased 50.8 percent in 2016. About two-thirds of the retail sales are conducted using the hire purchase system. Hire purchase related losses were below 0.5 percent of the revenue.

Last year 48 retail stores of the company were renovated. Some stores were enlarged. 

“Singer's main focus for 2017 is to continue to renovate and enlarge existing stores to allow for more products to be displayed, particularly furniture,” said the company.

The company expects to renovate over 60 stores in 2017. Some new stores will also be opened in key locations. The number of wholesale dealers is expected to increase significantly in the years ahead.

The financial services products offered from the Singer retail stores, like Western Union, bKash, Grameen airtime reloads and utility bill payments, increased in value by 110 percent in 2016, with nearly 55,000 customers visiting the outlets each month on average to take the services.

Singer, famous for sewing machines and hire purchase finance, is the largest retailer of consumer durables in Bangladesh, with 374 company-owned stores.

It commenced operations in the region in 1905. Today Singer sells all categories of consumer durables under Singer and third party brands. The company has over 425 wholesale dealers.

Singer Bangladesh is 70.1 percent owned by Retail Holdings Bhold BV of the Netherlands. Its shares are traded on both Dhaka and Chittagong bourses.