Sheng Siong stock drops 7.9% as quarterly profit edges higher
The supermarket group reported a 1.9 per cent profit increase and cautioned that promotions, cross-border shopping and wage costs could pressure its business.
Sheng Siong shares touched S$2.46 during early trading on Nov 2, losing 7.9 per cent after the Singapore supermarket operator posted third-quarter net profit growth of 1.9 per cent. Management also warned of competition and increasing labour costs.
The stock began trading at S$2.48, a 7.1 per cent decline, and recovered to that level at 9.53 am after its earlier low. The preceding Friday’s session had ended at S$2.67, a loss of S$0.13, or 4.6 per cent. ShareInvestor figures put trading volume at about 4.7 million shares by 10.10 am.
Net profit for the quarter ended Sep 30 reached S$44.6 million, compared with S$43.7 million a year earlier. Revenue advanced 6.2 per cent, reaching S$441.5 million against S$415.5 million. Sheng Siong credited additional Singapore stores and improved comparable same-store sales for the revenue increase.
At its results briefing, management said continued grocery promotions could squeeze revenue and margins. It also identified possible competition from the Johor Bahru-Singapore Rapid Transit System Link. Expected to open in February 2027, the connection could draw more shoppers across the border and increase pricing pressure on selected packaged groceries and household products.
The group said it would adjust its approach as the rail link develops. It also highlighted wage increases associated with the Progressive Wage Model and National Wages Council guidelines covering 2026 to 2027. Chief executive officer Lim Hock Chee said store expansion would continue to target locations where Sheng Siong has a limited presence.
