Sheng Siong's Q1 net profit up 13.9%, will continue e-commerce efforts

Sheng Siong's revenue for the quarter rose 6 per cent to $358 million. PHOTO: ST FILE

SINGAPORE (THE BUSINESS TIMES) - Supermarket operator Sheng Siong on Tuesday (Apr 26) posted a 13.9 per cent rise in net profit to $35.1 million for its first quarter ended March 31, from $30.8 million a year ago.

Revenue for the quarter rose 6 per cent to $358 million, from $337.5 million a year ago, according to the mainboard-listed group in a business update.

This was due to an increase in comparable same store sales by 4.7 per cent year on year in Singapore and 1 per cent year on year in China, it noted.

The company added that its new store in Singapore contributed 0.3 per cent increment to the total revenue increase.

Sheng Siong has 64 stores in Singapore and four stores in China today.

Gross profit also grew 9.8 per cent year on year to $102.7 million, with gross profit margins improving by 1 percentage point to 28.7 per cent in the first quarter of financial year 2022, which the group attributed to a change in sales mix.

Meanwhile, other income fell by $0.7 million year on year to $3.3 million for the quarter, due to a reduction in government grants received in line with Singapore's economic recovery, the group said.

As inflationary pressures mount, Sheng Siong noted that consumers are "increasingly concerned with the higher cost of living and may choose to dine in more at home", which may continue to support sales at their supermarkets.

Moving forward, the group will "redouble" its efforts in sourcing for differentiated and reliable supplies to ensure a stable supply of essential goods and to "bring value to its customers with competitive pricing and affordable products", it said.

Mr Lim Hock Chee, Sheng Siong's chief executive, also shared that the group secured the leases of three stores last year and is targeting to open three to five new stores per year for the next three to five years, with a focus on areas where it is not present in yet.

"For areas without the group's physical presence, we are continuing to build on our e-commerce capabilities to be able to provide to all our customers the same convenience of our products," he added.

Shares of Sheng Siong closed flat at $1.53 before the results release.

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