Sheng Siong posts 1.9% rise in third-quarter profit

Singapore supermarket operator Sheng Siong reported a profit of S$44.6 million for the quarter ended Sep 30, a 1.9 per cent increase from S$43.7 million a year earlier. The company announced the results on Oct 29.

Quarterly revenue reached S$441.5 million, compared with S$415.5 million a year earlier. Sheng Siong said the growth reflected an expanded Singapore store network and better comparable same-store sales. Earnings per share increased 1.7 per cent, reaching S$0.0296 against S$0.0291 previously.

The group's Singapore network comprised 92 outlets, compared with 84 a year earlier, while retail space increased to 799,775 square feet from 723,648 square feet. Its China store count was unchanged at six.

Management cautioned that continuing promotions in a competitive grocery market could weigh on sales and margins. It also identified potential competition from cross-border shopping once the Johor Bahru-Singapore Rapid Transit System Link opens, which is expected in February 2027.

Sheng Siong said the link could intensify price competition for certain packaged groceries and household products, and that it would adjust its strategies as circumstances develop.

The group also highlighted wage-related cost pressures under the Progressive Wage Model and National Wage Council guidelines for 2026-2027. Staff costs for the quarter rose to S$71.6 million from S$65.5 million.

Group CEO Lim Hock Chee said expansion would remain focused on locations where Sheng Siong has a limited presence. Before the results were announced, its shares finished Oct 29 at S$2.80, down 1.4 per cent or S$0.04.