Despite a noticeable growth in revenue during the first nine months of the current fiscal year, multinational electronics giant Singer Bangladesh has reported an increase in its net losses. According to the unaudited financial statements approved during a recent board meeting, the company's business expanded by more than 73 million BDT compared to the same period last year, yet heavy financial burdens dragged the final bottom line into the red. The company formally disclosed these crucial financial metrics through the country's stock exchanges for its shareholders and investors.
Financial data reveals that Singer Bangladesh generated a total revenue of 1,854 billion BDT in the first nine months of the year, up from 1,781 billion BDT recorded during the corresponding period last year. This represents an incremental growth of over 4 percent in turnover. Benefiting from this enhanced sales volume, the company's operational profit also experienced an upward tick, reaching approximately 97 billion BDT compared to 91 billion BDT in the previous year.
However, this operating profit was completely eroded by escalating non-operating expenses, primarily driven by hefty bank loan interest payments, government taxes, and mandatory allocations. In the first nine months alone, the company's expenditure on bank loan interests and principal repayment surged to 205 billion BDT, compared to 192 billion BDT in the previous year. This substantial jump of 13 billion BDT in interest burden alone severely impacted the company's profitability margins.
In addition to soaring financial costs, the company had to allocate massive funds toward the worker welfare fund, reaching 108 billion BDT during the nine-month span, alongside statutory corporate tax obligations. Market analysts note that while consumer demand and sales figures showed resilience, the skyrocketing cost of servicing debt and compliance expenses turned what would have been a profitable period into a wider net loss situation, raising concerns among institutional and retail investors alike.
