Sheng Siong Group has reported earnings of $66.9 million for the 2HFY2021 ended December, 4.8% higher than earnings of $63.8 million in the same period the year before.
Earnings per share (EPS) for the 2HFY2021 stood at 4.45 cents, up from the 4.25 cents in the 2HFY2020.
2HFY2021 revenue increased 6.4% y-o-y to $688.1 million as three new stores, which were opened in the 2HFY2020, contributed 23.9% to the increment. Two new stores that were opened in August and November 2021 in China also contributed to the revenue growth.
Gross profit increased 14.4% y-o-y to $200.1 million as gross profit margin (GPM) increased 2.1 percentage points to 29.2%.
The higher GPM offset the 2.2% y-o-y increase in operating expenses, which resulted in a profit before tax of $81.2 million, up 7.5% y-o-y.
In the FY2021, the group reported earnings of $132.8 million, down 4.2% y-o-y on the back of a higher base in the FY2020.
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FY2021 revenue fell 1.7% y-o-y to $1.37 billion as well, from the high base in FY2020. In FY2020, the group saw elevated demand arising from the Covid-19 pandemic.
As at end-December, cash and cash equivalents stood at $246.6 million.
The group has proposed a final dividend of 3.1 cents in the 2HFY2021, bringing the total dividend for the FY2021 to 6.2 cents per share, or a dividend payout ratio of 70%.
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Looking ahead, the group expects the elevated demand from the pandemic to taper down on the easing of the Covid-19 measures.
“Although there were no major disruptions to the food supply chain in FY2021 due to Covid-19, we observe increasing supply chain pressures and higher energy prices resulting in higher input costs,” says the group in its Feb 23 statement.
On the group’s future plans, group CEO Lim Hock Chee says, “We were successful in our bid and secured leases of three stores in FY2021, with two stores to begin operations in 1HFY2022. Moving forward, we will continue to search for suitable retail outlets in Singapore, particularly in areas where we do not have a presence. We are also committed to diversifying our supply sources to reduce risks of disruptions and ensure stable input prices.”
Shares in Sheng Siong closed flat at $1.52 on Feb 23.
Photo: Albert Chua/The Edge Singapore
