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Sheng Siong Q3 profit up 8.2%, warns of competition

Wednesday, October 26, 2016 - 19:44

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SUPERMARKET chain Sheng Siong Group on Wednesday posted an 8.2 per cent jump in net profit for its third quarter as margins strengthened, but warned of keen competition.

SUPERMARKET chain Sheng Siong Group on Wednesday posted an 8.2 per cent jump in net profit for its third quarter as margins strengthened, but warned of keen competition.

Net profit for the three months ended Sept 30, 2016 stood at S$15.7 million, compared to S$14.5 million from a year ago.

Revenue inched up 1.2 per cent to S$202 million, but cost of sales dipped by 0.9 per cent to S$150 million. Correspondingly, gross profit margin stood at 25.9 per cent, stronger than the 24.3 per cent posted a year ago. The margin was boosted mainly by higher rebates for volume, display and for providing bulk handling services on behalf of the suppliers.

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

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