Sheng Siong delivers double‑digit Q1 net profit growth from store expansion

Gross margin improves whilst costs rise as Singapore same-store sales gain offsets weaker China contribution.

Sheng Siong Group Ltd reported a 12.6% year-on-year (YoY) increase in net profit to $43.4m for the first quarter ended 31 March, supported by higher revenue and improved gross margin, whilst earnings per share increased 11.7% from $2.57 to $2.87.

Revenue rose 12.4% to $452.8m, driven mainly by contributions from 12 new stores opened in the financial year (FY) 2025 and higher festive demand during Lunar New Year and Hari Raya Puasa periods.

Gross profit increased 15.0% to $140.3m, with gross margin improving to 31.0% from 30.3% a year earlier, supported by changes in sales mix that helped offset higher operating costs.

Operating expenses increased during the quarter, according to the company’s financial statement.

Selling and distribution expenses rose 15.6% to $76.1m, whilst administrative expenses increased 12.8% to $17.8m.

The group attributed the increases mainly to higher staff costs from additional headcount, wage adjustments under the Progressive Wage Model, and higher depreciation from new store leases and infrastructure investments.

Other income rose 26.6% to $6.0m, supported by higher government grants, lower net exchange losses, and increased miscellaneous income.

Cash generated from operating activities rose to $39.4m from $27.9m a year earlier. Cash and cash equivalents increased 5.9% YoY to $461.1m as at 31 March.

Comparable same-store sales in Singapore rose 3.5%, reflecting growth in existing outlets. 

China operations, which accounted for 2.1% of total group revenue, recorded a 0.4% decline in revenue but remained at break-even level for the quarter, with no material impact on overall group performance.

The group said it secured three additional store sites, with two targeted to open in the second quarter of FY2026 and one in the third quarter of the same timeframe.