Sheng Siong Group has reported a net profit of $70 million for its 1HFY2024 ended June, a 6.8% increase from the previous corresponding period.
Revenue increased 3.4% to $714.2 million, from $690.5 million recorded in 1HFY2023. This was largely driven by a longer sales period prior to the Lunar New Year which fell in February.
Gross profit grew 4.8% y-o-y to $215 million, while profit margins recorded a slight 0.4 percentage points growth to 30.1%.
In 1HFY2024, Sheng Siong’s selling and distribution expenses increased by 3.5% to $113.5 million while administrative expenses increased by 14.1% to $27.9 million. These were largely attributed to higher staff variable bonuses due to stronger financial performance.
Cash flow from operating activities increased to $93 million compared to $77.8 million in the same period last year where more funds were utilised to pay suppliers.
As at June, Sheng Siong’s cash position stood at $349.6 million, which increased from S$324.4 million as at Dec 31, 2023.
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Following the resilient financial performance, Sheng Siong plans an interim dividend of 3.2 cents per share.
Elaborating on its expansion strategy in Singapore, the company notes that it has opened two new stores and expanded the retail area of one store in 1HFY2024, aside from opening another two in July.
“The group has also tendered for three new stores and is awaiting the results. Meanwhile, the supply pipeline of new stores is promising, with an expected seven stores put up for tender by HDB in 2HFY2024. In China, as planned, we opened one store in June 2024, bringing the total number of stores to six,” says its CEO Lim Hock Chee.
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Shares in Sheng Siong closed at an unchanged $1.50 on July 29.
