Higher revenue boosts Q3 net profit for Sheng Siong

SUPERMARKET Sheng Siong's net profit for the third quarter to September rose 8.3 per cent year on year to S$34.4 million from S$31.8 million on higher revenue and improved sales mix that included products with higher margin.

Revenue, driven by Covid-induced restrictions that fuelled higher demand and contributions from three stores that opened last year, amounted to S$348.1 million, up 6.4 per cent year on year from S$327.3 million.

In financial results filed to the Singapore Exchange on Oct 28, the mainboard-listed supermarket chain operator reported that its earnings per share improved from 2.21 Singapore cents to 2.29 cents for the quarter.

As it expects the government's Covid restrictions to be relaxed, given the stance on living with the endemic, the supermarket operator said that demand for its goods might taper off.

The company cautioned that input prices are subject to possible disruptions from the global impact of the pandemic, weather or geo-political events. But it said its core competencies will enable it to improve operational efficiency and increase gross margin.

It said that it seeks retail space in Housing Board estates in Singapore to open stores, particularly where it does not have a presence. The company also expanded its geographical footprint in China, where it is due to begin operations in its fourth store by year's end.

The counter was down by S$0.01 at S$1.42 on Thursday (Oct 28), before its financial results went public.