Singer March sales soar reflecting robust demand for consumer durables

Singer (Sri Lanka) PLC reported some solid top and bottom-line performances for the three months ended March 2025, on the back of strong demand for its durable products as well as at its financial services business, amid the declining interest rates.  

The consumer durables juggernaut reported revenues of Rs.24.14 billion for the January-March quarter, up by as much as 50 percent from the same period in 2024.

This sharp increase in the sales, which was broad-based across all its business segments, was a testament that the company is seeing that the consumers for durable goods are returning in strides, as the borrowing costs are lower, incomes are improving while the costs they may have to incur are relatively lower, due to the stronger rupee compared to a year ago.

The breakdown of its sales portfolio across its main business lines showed that the company’s consumer electronics saw a 56.0 percent increase from a year ago period to Rs.2.45 billion.

The home appliances sales too grew by 40.0 percent to Rs.8.62 billion, followed by the furniture sales, which rose by 30.4 percent from a year ago to Rs.1.25 billion.

Home appliances remain the company’s largest by revenue but the IT products segment, which sells smartphones, laptops and other digital appliances, reported the highest growth in sales during the quarter, with its revenues rising by as much as 104.0 percent to Rs.5.60 billion.

Meanwhile, the Singer’s eponymous sewing machines sales saw a 59.1 percent increase to Rs.799.32 million.

The financial services sector revenue, which is coming from its finance subsidiary, saw its revenue rising by Rs.4.05 billion, up 34.1 percent from the same period a year ago.

The company reported a gross profit of Rs.7.48 billion, up 51 percent from a year ago.

The operating profit meanwhile surged 117 percent to Rs.2.49 for the quarter, despite the 26 percent increase in the selling and administration expenses.

The net finance meanwhile fell by 31 percent to Rs.249.38 million for the quarter, predominantly on the declining borrowing costs, despite the rise in borrowings.

Against this backdrop, the company reported earnings of Rs.1.15 a share or Rs.1.35 billion for the quarter ended March 2025, up substantially from the 32 cents a share or Rs.361.74 million reported in the year earlier period.

For the full financial year concluded March 2025, the company reported earnings of Rs.3.43 a share or Rs.4.00 billion, compared to a loss of 14 cents a share or Rs.159.81 million in the financial year ended March 2024.