Sheng Siong Group has reported earnings of $39.1 million for 3QFY2024 ended September, up 12.4% y-o-y from the same period last year.
Earnings per share stood at 2.6 cents, up from 2.3 cents in 3QFY2023.
For the same period, the group’s revenue saw a 5% y-o-y increase to $363.2 million. This came on the back of the net increase in total stores to 79, up from 74 in the same period last year. In addition, the group says comparable same store sales rose by 1.5% y-o-y.
Accordingly, gross profit for 3QFY2024 stood at $113.8 million, up 8.4% y-o-y. The group’s gross profit margin saw a slight increase by 1.0 percentage points (ppt) to 31.3%, due to an improvement in sales mix, which offset elevated business costs.
Additionally, other income for the period increased by 96.5%, driven by the receipt of the progressive wage credit scheme grant in 3QFY2024.
Administrative expenses rose by 15.9% y-o-y to $15.3 million in 3QFY2024, while selling and distribution expenses increased by 6.4% y-o-y to $59.1 million.
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For 3QFY2024, the group’s generated cash flow from operating activities rose by 7.6% y-o-y to $59.1 million, due to higher profit reported in this period. As at Sept 30, the group ended the quarter with a cash and cash equivalents balance of $350.1 million.
Moving forward, the group expects competition in Singapore's supermarket industry to remain high. Additional uncertainties such as rising labour and energy costs and the increasing focus on sustainability, which could contribute to higher operational expenses, are also expected.
In response, the group says it remains focused on “strengthening its core competencies and diversifying its supply chain to build a more resilient network capable of withstanding external disruptions’.
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Lim Hock Chee, CEO of Sheng Siong Group OV8 , says: “Looking ahead, we will continue to focus on driving sustainable growth by enhancing our operational efficiency, expanding our product offerings, and strengthening strategic partnerships.”
He adds that the group has since opened five new stores, which include an addition at Blk 512 Bishan Street 13, as part of its ongoing efforts to strengthen Sheng Siong’s presence.
Shares in Sheng Siong Group closed 1 cent higher, or up 0.64%, at $1.58 on Oct 29.
