Sheng Siong H1 net profit rises 11.7% to S$80.8 million on improved sales mix

[SINGAPORE] Supermarket operator Sheng Siong posted an 11.7 per cent increase in net profit for the first half of the 2026 financial year to S$80.8 million, from S$72.3 million in H1 FY2025.

Revenue for the period grew 11.9 per cent on the year to S$855.4 million, from S$764.7 million. This was mainly driven by the opening of 16 new stores in FY2025 and H1 FY2026, and higher comparable store sales, it said on Wednesday (Jul 29).

Gross profit rose 15.6 per cent to S$272.4 million, from S$235.6 million. Gross profit margins increased by one percentage point to 31.8 per cent from 30.8 per cent in the year-ago period.

The improvements were driven by a better sales mix and efforts to mitigate rising business operation costs.

The board of directors declared a higher interim dividend of S$0.0375 per share for H1 FY2026, up from S$0.032 per share for the previous corresponding period. It will be payable on Aug 28.

Sheng Siong said it continues to prioritise improving its sales mix while looking to technology to enhance efficiency and productivity.

On Jul 13, the group broke ground on its new Sungei Kadut distribution centre, which is slated for completion in 2029. It is designed to support more than 120 supermarket stores.

“The retail grocery industry remains competitive, and with the Johor Bahru-Singapore Rapid Transit System Link set to open in 2027, we stand ready to adapt our pricing, promotions and product mix... to remain competitive,” said Lim Hock Chee, Sheng Siong’s CEO.

He added that the group is expected to open three new stores in the third quarter.

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Shares of Sheng Siong closed 0.3 per cent or S$0.01 higher at S$3.26 on Wednesday, before the results were released.