Following the economy’s reopening in June, most of the Singer products have sold well and the company turned around in business
Absorbing the shutdown shocks in the April-June quarter, Singer Bangladesh Limited has successfully avoided any major sales disruption in the third quarter.
The longest serving player in the local appliances and electronics market, having its presence in every corner of the land, had missed the opportunity in Eid-Ul-Fitr season this year due to complete shutdown in April and partial shopping opportunities in May, according to a company statement.
Singer sales team achieved half of their monthly target in May and the company's consolidated sales dropped by 42% in the April-June or second quarter, compared to that of the previous year. Meeting all the unavoidable expenses, the company's profit for the three months dropped by nearly 80%.
However, following the economy's reopening in June, most of the Singer products with their increasing relevance in people's everyday life have sold well and the company turned around in business.
Talking about the company's third quarter business success, Singer Bangladesh CEO MHM Fairoz told The Business Standard, "Despite difficult time for all businesses in the second quarter, we have come back well in the third quarter, mostly due to our ability to remain relevant to the lives of our consumers even amid the rapidly changing socio-economic scenario.''
Singer's business strategy was to focus on appliances related to consumers' hygiene and products that assisted them to fulfil a good part of their daily needs staying at home. Sales of washing machines, televisions, microwave ovens, other kitchen appliances and laptops increased significantly during this period, he added.
Besides, a reliable and quick online shopping experience, very convenient payment options and schemes as well as free home delivery maintaining safety measures had been very effective to satisfy our customers, Fairoz continued.
In the third quarter, the company earned Tk627 crore in revenue, against less than Tk540 crore over the same three months a year ago, and less than Tk300 in the second quarter this year.
The increased sales helped the company post net profit over Tk45.7 crore in third quarter, which was Tk43.9 crore a year ago, and less than Tk8 crore in the April-June quarter this year.
However, the turnaround failed to help the company recover its lost sales and profits in the second quarter. Singer's sales stood at Tk1,226 crore in January-September period, which is still nearly Tk100 crore less than that of a year ago.
Analysts are curiously observing the last quarter business to learn if the company can recover from the shutdown shocks at the end of the year.
However, MHM Fairoz's confidence is reflected in Singer's corporate social responsibility activities even in the adverse business days.
"In the middle of a very unfavourable business environment during the lockdown period, Singer did not hesitate to stand by the society," he said.
Singer washing machines, microwave ovens and other products had been donated to a number of hospitals in and outside Dhaka to facilitate doctors and nurses treating Covid-19 patients. Singer also distributed relief among the distressed people who suffered due to the cyclone Amphan.
''We put the people of our society above profit'', the Singer CEO said.
Singer, the once global giant for sewing machines, is present here for a century. In the early 1980s the company emerged here as a home appliances marketer.
Over decades of journey, the company now offers a complete range of affordable and also reliable home appliances and electronics products across Bangladesh.