Sheng Siong Group rings in higher profit in Q3 thanks to new stores contribution

Supermarket operator Sheng Siong Group registered a 7.8 per cent increase in net profit to $10.6 million for the third quarter, mainly due to higher revenue and better gross profit margin. -- ST FILE PHOTO: KEVIN LIM
Supermarket operator Sheng Siong Group registered a 7.8 per cent increase in net profit to $10.6 million for the third quarter, mainly due to higher revenue and better gross profit margin. -- ST FILE PHOTO: KEVIN LIM

Supermarket operator Sheng Siong Group registered a 7.8 per cent increase in net profit to $10.6 million for the third quarter, mainly due to higher revenue and better gross profit margin.

Revenue for the three months to Sept 30 rose by 4.8 per cent to $177.8 million, largely from increased contribution from new stores of $12.6 million.

This was partially offset by a contraction in comparable same store sales of $4.5 million.

Declining sales in the group's matured stores in older housing estates, competitors' activities and renovation works affecting Bedok Central and The Verge stores were the main reasons for the lower comparable same store sales.

Of the $4.5 million contraction in comparable same store sales, $3.5 million was attributed to the drop in sales for Bedok Central and The Verge stores.

Gross profit margin at 23.2 per cent was 0.3 percentage point higher than the corresponding period last year, mainly due to slightly lower input costs brought about by savings derived from the distribution centre.

Earnings per share climbed to 0.76 cent from 0.71 cent previously while net asset value per share eased to 10.15 cents compared to 10.96 cents as at Dec 31.