Retailer’s Revenue and Gross Profit Also See Positive Growth in the First Quarter
Supermarket chain Sheng Siong (OV8) has announced a 13.9% rise in net profit to S$35.1 million for the first quarter ending 31 March 2022, up from S$30.8 million a year earlier.
The company’s quarterly revenue grew 6% to S$358 million, compared to S$337.5 million in the same period last year. This growth was primarily driven by a 4.7% increase in same-store sales in Singapore and 1% in China. Additionally, Sheng Siong’s new store in Singapore contributed an incremental 0.3% to the overall revenue.
Gross profit for the quarter climbed 9.8% year-on-year to S$102.7 million, with gross profit margins improving by 1 percentage point to 28.7%. This was attributed to changes in the sales mix.
However, other income decreased by S$0.7 million to S$3.3 million, largely due to a reduction in government grants as Singapore’s economy recovered.
Despite inflationary pressures, Sheng Siong highlighted that consumers’ growing concerns about the rising cost of living may drive more people to dine in, a trend that could support continued supermarket sales.
Looking ahead, the company plans to intensify its efforts in sourcing differentiated and reliable supplies to maintain stable stocks of essential goods and offer competitive pricing. Sheng Siong also plans to open 3 to 5 new stores annually over the next 3 to 5 years, focusing on areas where it currently has no presence. Additionally, the company continues to enhance its e-commerce capabilities to ensure that all customers enjoy the same convenience and access to products.
Sheng Siong’s shares ended the trading session at S$1.53, unchanged before the results were announced.
