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Sheng Siong posts 4.2% rise in Q4 net profit on higher sales

SUPERMARKET chain operator Sheng Siong Group posted on Monday a 4.2 per cent increase in its fourth-quarter net profit on stronger gross profit. 

Net profit for the three months ended Dec 31, 2018 stood at S$17.53 million, compared with a net profit of S$16.82 million posted the same period a year ago. 

The results translate to earnings per share of 1.17 Singapore cents, against earnings per share of 1.12 Singapore cents.

Revenue was up 10.7 per cent to S$221.8 million, while gross profit rose 9.2 per cent to S$60.19 million.

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"Competition in the supermarket industry is expected to remain keen among the traditional brick and mortar, exacerbated by the proliferation of new supermarkets in HDB residential areas, as well as the push by new and existing e-commerce players for market share," said Sheng Siong in its financial results. 

"The group will also continue to look for retail space in new and existing HDB housing estates, particularly in estates where there is no presence. Since the beginning of 2019, six HDB shops which were won by the competitors via online bidding in 2017 and 2018 are now vacant and have been released for re-tender."

Shares of Sheng Siong closed on Monday unchanged at S$1.08.