SINGAPORE – Supermarket chain Sheng Siong posted a 12.6 per cent increase in net profit to $39.1 million for the third quarter ended Sept 30, from $34.7 million the year before.
Revenue grew 5 per cent year on year to $363.2 million, driven by the opening of five new outlets over the same period, Sheng Siong said in a business update on Oct 29.
Comparable same-store sales improved 1.5 per cent on a year-on-year basis, it added.
Sheng Siong chief executive officer Lim Hock Chee said that although the retail market remains in the doldrums, the company is hopeful that there will be improvements in the remainder of financial year 2024.
“The reduction of the US interest rate may potentially drive domestic interest rates downwards, which will provide relief to the household budget on the back of lower mortgage costs,” he added.
With Singapore’s supermarket industry expected to see higher operational expenses, Mr Lim said that the group will focus on strengthening its core competencies and diversifying its supply chain to withstand external disruptions.
“At the same time, we will further optimise our sales mix and continue to work with good suppliers to provide customers with high-quality products at competitive prices,” he added.
In line with the increase in revenue, the supermarket’s gross profit grew by 8.4 per cent year on year to $113.8 million in the third quarter.
Earnings per share stood at 2.6 cents, 12.6 per cent higher than in the year-ago period.
Cash flow generated for the third quarter ended Sept 30 rose by 7.6 per cent from the year before to $59.1 million, supported by higher profit posted during this period.
The group’s administrative expenses and distribution expenses both grew due to higher staff costs and higher variable bonuses issued to employees on the back
