Sheng Siong Group has reported earnings of $72.35 million for the 1HFY2025 ended June 30, up 3.4% y-o-y.
The group’s revenue for 1HFY2025 rose 7.1% y-o-y to $764.7 million, driven by the opening of eleven new stores in the first half of the year and in 2024.
For 1HFY2025, gross profit increased 9.6% y-o-y to $235.6 million, and gross profit margin improved to 30.8%. This was mainly attributable to improvements in the sales mix while navigating the rising business operation costs, the group says.
Other income increased to $7.8 million in 1HFY2025, supported by higher operating lease income and more government grants received.
Meanwhile, operating expenses recorded a y-o-y increase of 12.2% to $158.7 million, driven by a 13.9% y-o-y increase in selling and distribution expenses, primarily attributed to an increase in number of employees from newly opened supermarket stores, and higher variable bonuses resulting from better financial performance.
Cash flow generated from operating activities decreased to $86.4 million in 1HFY2025, due to increased funds utilised to settle outstanding payments to suppliers.
Cash and cash equivalents stood at $367.2 million as at end June.
The board has proposed an interim dividend of 3.20 cents per share.
Sheng Siong says that it will prioritise improving its sales mix while enhancing efficiency and productivity through technology enhancements, automation and supply chain diversification.
It is actively pursuing expansion opportunities, particularly in areas where it currently has limited presence, and is awaiting tender results for three new stores. In China, competition in the supermarket sector remains keen. The group will exercise prudence in opening new stores, with a continued focus on improving the performance of existing stores.