Sheng Siong Group net profit up 23.1%, announces dividend

Sheng Siong Group on Thursday, July 23, 2015, reported a 23.1 per cent year-on-year increase in its net profit for the quarter ended June 30.
Sheng Siong Group on Thursday, July 23, 2015, reported a 23.1 per cent year-on-year increase in its net profit for the quarter ended June 30. PHOTO: ST FILE

SINGAPORE - Sheng Siong Group has reported a 23.1 per cent year-on-year increase in its net profit to S$13.6 million for the quarter ended June 30, over higher revenue and improved gross margin.

The company declared interim dividend of 1.75 cent per share, according to a release issued Thursday.

Revenue increased by 4.3 per cent in the second quarter over the corresponding period in the previous year, 4 per cent of which was contributed by its five new stores.

Same store sales growth for the second quarter was lower than the 2.9 per cent in previous quarter due to tepid post Chinese New Year demand and intensified competition resulting from retailers making sales offers, the company said.

Due to the various initiatives taken by the Group, Sheng Siong¡¯s gross margin has been improving steadily over the past quarters.

Administrative expenses increased by 5.5 per cent to S$30.1 million in the second quarter of 2015, due to increase in staff costs over increased headcount in new stores, rentals and depreciation expenses.

The Group is still looking to expand.

"We remain committed to our store expansion plans, particularly in locations where we do not have a presence, so as to reach out to our customers," Group chief executive Mr Lim Hock Chee said.

"At the same time, we will continue to nurture the growth of both our new and old stores, improve the sales mix and work towards reducing input costs by capitalising on our Mandai distribution centre."