Better margins, higher revenue boost Sheng Siong's Q2 results

HIGHER revenue and an improved margin lifted results for supermarket operator Sheng Siong in its second quarter ended June 30, 2016.

Net profit rose 11.3 per cent to S$15.17 million from the previous year, the group said in a Singapore Exchange filing on Tuesday evening.

Revenue rose 5.5 per cent to S$188.76 million from the previous year. Revenue growth from new stores and same store sales were offset by the temporary closure of the Loyang store. Three new stores in Circuit Road, Upper Boon Keng Road and Fernvale were opened in the quarter, while same store sales were up 1.3 per cent.

Gross margins improved to 26.1 per cent from 25.2 per cent a year ago, mainly because of suppliers' rebates and reduction in input costs. Cost reductions came mainly from bulk handling, facilitated by continuous improvements from the firm's central warehouse at Mandai.

Q2 earnings per share climbed to 1.01 Singapore cents from 0.91 Singapore cent in the previous year.

Dividend per share grew to 1.9 Singapore cents from 1.75 Singapore cents in the year-ago period.

Sheng Siong shares closed at S$0.96 on Tuesday, up a cent or one per cent.