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Sheng Siong Net Profit Grew 16.8% for 1Q2016

Sheng Siong Show

On 27th April 2016. Sheng Siong announced its 1Q2016 financial results. Net Profit grew 16.8% due to higher revenue and higher other income. Sheng Siong’s other income comes from Rental income (leasing of retail space to external parties), sale of scrap materials and government grants (wage credit and special employment credit schemes). Government grants for 1Q2016 was S$2,252,000 as compared to S$817,000. This is a significant increase.

Administrative expenses increased by S$1.6 million in 1Q2016 compared with 1Q2015 due to higher staff costs. More headcount are required to operate the new stores as highlighted below.

Cash flow remains strong at S$113.9 million as at 31 March 2016.

Financial Highlights

(S$ ‘million)

1Q2016 1Q2015 Change
Revenue 208.5 198.4 5.1%
Gross Profit 51.0 48.5 5.2%
Gross Profit Margin 24.5% 24.4% 0.1 percentage points
Other Income 3.8 2.2 70.8%
Net Profit 16.4 14.1 16.8%
Net Profit Margin 7.0% 7.1% 0.8 percentage points
EPS (cents) 1.09 0.94 16.0%

Debt

Sheng Siong is still debt free.

New Stores

As of 1Q2016, Sheng Siong has 39 stores as compared to 35 stores in 1Q2015. 4 more stores are expected to open in 2Q2016.

They are

  1. Yishun Junction 9
  2. Circuit Road
  3. Upper Boon Keng Road
  4. Fernvale Street, Sengkang

The subsidiary in Kunming China, has signed a lease for their first store which is approximately 54,000 sq. ft and the supermarket should open in 4Q2016.

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