Sheng Siong Group Q3 net profit surges to $43.8m

The group had a net profit of $116.1m for the past nine months.

Supermarket chain operator Sheng Siong Group reported a net profit of $43.8m in the third quarter, a 12% increase compared to the same period last year.

Revenue for Q3 FY2025 increased by 14.4% year-on-year (YoY) to $415.5m, compared to $363.2m in Q3 FY2024. This growth was primarily driven by the net increase in total stores to 90, up from 79 in the same period last year. In addition, comparable same-store sales improved by 4.4% on a YoY basis.

In line with the increase in revenue, the gross profit increased by 15.2% YoY to $131.1m in Q3 FY2025. The group’s gross profit margin improved marginally by 0.2 percentage points to 31.5%, mainly attributed to continual improvements in the sales mix whilst navigating the rising business operation costs.

The group expects grocery demand to remain resilient. Singapore’s Retail Sales Index rose 5.2% YoY in August, with Supermarkets & Hypermarkets up 8.7%, whilst Food & Beverage Services declined 0.4%, indicating caution on out-of-home spending even as overall retail holds firm.

Consumer spending in supermarkets and heartland shops continued to be supported by CDC and SG60 vouchers. However, competition within the supermarket and heartland retail segments remains intense and may exert pressure on margins.

Sheng Siong said it will continue to diversify its supply chain to build resilience against external disruptions, optimise efficiency through automation and technology enhancements, as well as improve its sales mix to support sustainable growth.