Sheng Siong’s first quarter net profit up 13.9%, will continue e-commerce efforts

SINGAPORE (THE BUSINESS TIMES) – Supermarket operator Sheng Siong reported a 13.9% increase in net profit on Tuesday (April 26) to $35.1 million for its first quarter ended March 31, 2022, from 30, $8 million a year ago.

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

This was due to an increase in same-store same-store sales of 4.7% year-on-year in Singapore and 1% year-on-year in China, he noted. He added that his new store in Singapore contributed 0.3% to the total revenue increase. Sheng Siong now has 64 stores in Singapore and four stores in China.

Gross profit also increased 9.8% year-on-year to $102.7 million, with gross profit margins improving 1 percentage point to 28.7% in the first quarter of Fiscal 2022. which the group attributed to a change in the sales mix.

Meanwhile, other income was down $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, it said. indicated the group.

As inflationary pressures rise, Sheng Siong noted that consumers are “increasingly concerned about the higher cost of living and may choose to dine at home more,” which could continue to support sales in their markets. supermarkets.

Going forward, the group will “double” its efforts to find differentiated and reliable supplies, ensure a stable supply of essential goods and “bring value to its customers with competitive prices and affordable products”.

Mr. Lim Hock Chee, Managing Director of Sheng Siong, also said that the group secured the leases for three stores last year and aims to open three to five new stores per year over the next three to five years, in emphasizing areas where it is not yet present in.

“For areas without a physical group presence, we continue to leverage our e-commerce capabilities to be able to offer all of our customers the same convenience of our products,” he added.

Shares of Sheng Siong closed at $1.53 ahead of the earnings release.