Sheng Siong posts higher Q2 profit

SUPERMARKET group Sheng Siong posted a 7.4 per cent year-on-year increase in net profit to S$18.42 million for the second quarter ended June 30.

Revenue was up 11.8 per cent to S$238.16 million after it opened 13 new stores, while earnings per share for the quarter clocked 1.23 Singapore cents, rising from 1.14 cents a year ago.

The group declared an interim dividend of 1.75 cents per share, payable on Aug 27. This is up from the dividend of 1.65 cents a year ago.

For the six months, net profit increased 6.6 per cent year-on-year to S$37.78 million, due to higher revenue, slightly improved gross margins and higher other income. Meanwhile, revenue was 11 per cent higher at S$489.59 million.

Sheng Siong warned that competition in the supermarket industry is expected to remain stiff, stemming from both brick-and-mortar stores as well as online retailers, while local consumer demand could be dented by the economic outlook.

Lim Hock Chee, the group's chief executive officer, said: "We remain focused on widening our reach by continuously looking for suitable retail space, particularly in areas where our customers reside but we do not have a presence."

The counter closed at S$1.11 on Monday, up one Singapore cent.