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Singapore's Sheng Siong Q3 revenue rises 6.2% on store expansion

By Reuters News


Overview

  • Singapore supermarket retailer's Q3 revenue rose 6.2% yr/yr, driven by new store openings

  • Net profit for Q3 increased 1.8% yr/yr

  • Gross margin improved to 32.2% due to a better sales mix


Outlook

  • Company expects grocery demand to remain resilient amid steady domestic economy

  • Sheng Siong anticipates value-conscious consumer spending amid rising costs and supply chain risks

  • Company will strengthen supply chain, optimise sales mix, and invest in automation and technology


Result Drivers

  • STORE EXPANSION - Revenue growth was driven by new store openings, with the total number of stores rising to 92

  • SALES MIX IMPROVEMENT - Gross margin improved to 32.2% due to a better sales mix

  • HIGHER OPERATING COSTS - Increased expenses from new store openings and higher variable bonuses


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

S$441.5 mln

Q3 Net Income

S$44.6 mln

Q3 Gross Margin

32.2%

Q3 Gross Profit

S$142.3 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the food retail & distribution peer group is "buy."

  • Wall Street's median 12-month price target for Sheng Siong Group Ltd is S$3.31, about 16.5% above its October 28 closing price of S$2.84

  • The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 29 three months ago


Reuters Recommended Reads

  • Oct 27 - Australia's Woolworths first-quarter sales up as discounted goods fill cash-strapped carts

  • Oct 26 - South Africa's Pick n Pay narrows first-half loss as turnaround gains traction

  • Oct 29 - Finland's Kesko Q3 net sales rise 5.2%; lifts profit forecast


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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