Sheng Siong Q3 profit up 1.9% at S$44.6 million

[SINGAPORE] Supermarket operator Sheng Siong posted third-quarter profit of S$44.6 million for the period ended Sep 30, up 1.9 per cent from S$43.7 million in the previous year.

On Thursday (Oct 29), the mainboard-listed company reported S$441.5 million in revenue, up 6.2 per cent from S$415.5 million in the year-ago period.

The group attributed the increase in revenue to a rise in total stores in Singapore, as well as improvements in comparable same-store sales.

Within the city-state, Sheng Siong currently has 92 stores, up from 84 stores in the same period the year before. Total retail area in Singapore stood at 799,775 square feet (sq ft), compared with 723,648 sq ft previously.

The total number of stores in China remains unchanged at six.

Earnings per share rose 1.7 per cent to S$0.0296, from S$0.0291 in the year-ago period.

Despite the improvement in results, the management of Sheng Siong acknowledged that the grocery retail landscape remains competitive, and sustained promotions may pressure revenue and margins.

Moreover, the upcoming Johor Bahru-Singapore Rapid Transit System (RTS) Link, which is expected to open in February 2027, may increase cross-border shopping and price competition for selected packaged groceries and household products.

To address the risks associated with the new RTS Link, the group will adapt its strategies as developments unfold.

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Another risk identified by the group was increased cost pressures from wage increases under the Progressive Wage Model, and the recent National Wage Council guidelines for 2026-2027.

Sheng Siong noted that it also raised retail workers’ salaries in September last year to meet the Progressive Wage Model requirements in the retail sector.

Q3 staff costs stood at S$71.6 million, up from S$65.5 million in the previous year.

“Looking ahead, we will continue to prioritise expansion in areas where the group has limited presence, to extend our reach to customers,” said Lim Hock Chee, group CEO of Sheng Siong.

Sheng Siong shares closed Thursday at S$2.80, down 1.4 per cent or S$0.04, before the results were released.