Sheng Siong’s Q3 net profit grows 5.7% to $34.8 million
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Sheng Siong said that sales contribution from its six new stores rose by 2.2 per cent.
PHOTO: ST FILE
Yong Hui Ting
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SINGAPORE – Supermarket operator Sheng Siong Group on Thursday posted a third-quarter net profit of $34.8 million, up 5.7 per cent from the $32.9 million posted the year before.
Revenue in the third quarter rose 3.7 per cent to $345.8 million, from $333.5 million last year.
Sheng Siong said that sales contribution from its six new stores rose by 2.2 per cent, which is more than the 1.8 per cent growth logged in its other comparable stores.
Earnings per share rose 5.9 per cent to 2.31 Singapore cents, up from 2.18 cents last year.
The group expects challenging economic and geopolitical conditions to linger. It also flagged climate risks from the onset of the El Nino weather pattern, which may threaten agriculture yields and drive up food prices amid smaller harvests and pricier animal feed.
Margins may also suffer as a result of fierce pricing action among major grocers, and higher energy and staff costs, Sheng Siong added.
However, the group expects a boost in sales from support packages distributed by the Government. It also noted that the higher GST rate and carbon taxes have created a growing preference for home-cooked meals.
“The group will explore potential technological improvements and focus on strengthening its core competencies to improve overall operational efficiency and productivity,” it said.
Shares in Sheng Siong closed flat at $1.47 on Friday. THE BUSINESS TIMES
