Supermarket operator Sheng Siong racks up higher earnings, revenue

Supermarket operator Sheng Siong Group rang up a 30.3 per cent rise in net earnings to $11.1 million for the second quarter. -- PHOTO: ST FILE 
Supermarket operator Sheng Siong Group rang up a 30.3 per cent rise in net earnings to $11.1 million for the second quarter. -- PHOTO: ST FILE 

SINGAPORE - Supermarket operator Sheng Siong Group rang up a 30.3 per cent rise in net earnings to $11.1 million for the second quarter.

Revenue for the three months to June 30 was up 7.4 per cent at $171.6 million.

Of the increase, 2.7 per cent was contributed by eight new stores that opened in 2012.

The other part of the gain was from comparable same store sales.

"This was achieved notwithstanding the closure of the Chin Swee store for almost a month during the second quarter for a total makeover," said Sheng Siong in a statement.

If the decline in sales from the Bedok Central and The Verge stores, which were affected by ongoing construction works in the vicinity, were excluded, comparable same store sales would have risen by 5 per cent, it added.

Refurbishment work done to some stores, longer operating hours as well as marketing initiatives were the main reasons for the improvement in comparable same store sales.

For the half year, net profit climbed by 24.2 per cent to $23.6 million on the back of a 6.5 per cent rise in revenue to $361.3 million.

Quarterly earnings per share firmed to 0.8 cent from 0.61 cent previously while net asset value per share increased to 11.13 cents compared to 10.83 cents as at Dec 31.

The company will pay out an interim dividend of 1.5 cents a share, up from 1.2 cents last year.

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