Sheng Siong posts 5.7% rise in Q4 profit

SUPERMARKET chain Sheng Siong Group on Thursday reported a 5.7 per cent increase in net profit for the fourth quarter on higher sales, but warned of lacklustre demand ahead.

Net profit for the three months ended Dec 31, 2016 stood at S$15.4 million, up from S$14.6 million a year ago.

Revenue rose 5.3 per cent to S$197 million for the quarter, due to the addition of new stores.

"Retail sales, which had been generally weak in fiscal 2016 are not expected to improve spectacularly," Sheng Siong said in its financial statement.

"Likewise, sales at supermarkets had not been exciting and going forward the group anticipates continuing lacklustre demand. Competition in the supermarket industry is expected to remain keen as consumers are expected to be more cost conscious, which may affect the group's ability to pass on any increases in input cost in full to the customers."