Sheng Siong Q3 profit rises 18.7% on back of new store sales

SHENG Siong Group on Thursday posted an 18.7 per cent growth in net profit for its fiscal third quarter, largely on the back of new-store sales.

Net profit in the three months ended September rose to S$14.5 million, or 0.96 Singapore cents per share, as revenue increased by 7.3 per cent to S$200 million.

For the first nine months of the year, cumulative net profit improved by 17.8 per cent to S$42.2 million, or 2.81 Singapore cents per share.

Five new stores that opened during 2014 and 2015 contributed 6.2 percentage points of revenue growth in the third quarter, outpacing the 1.1 percentage point growth contribution from same-store sales.

Sheng Siong said retail sales in Singapore were "unexciting" during the quarter.

"Competition in the supermarket industry is expected to remain keen and with the uncertain economic conditions, consumers would continue to be even more cost conscious," the company said. "This may affect the group's ability to pass on increases in input cost in full to the customers."

The company is still looking for retail space in areas where it does not have a presence, and is looking at potential sites in Kunming with a partner to operate the first supermarket there.