SINGAPORE (Apr 27): Sheng Siong Group saw its earnings grow 6.6% to $18.3 million for the 1Q ended March, from $17.1 million a year ago.

1Q18 revenue rose 5.1% to $228.3 million, from $217.1 million a year ago.

This was mainly due to an increase in contribution from the opening of seven new stores and higher comparable same store sales, partially offset the closure of the Verge and Woodlands Block 6A stores in FY17.

Gross profit climbed 10.0% to $59.8 million during the quarter, as gross profit margin improved by 1 percentage point to 26.2%.

This was mainly because of suppliers’ rebates as well as a higher sales mix of fresh products which command a higher gross margin compared to non-fresh products.

The group says the improvement in the sales mix was the result of marketing efforts.

As at end March, cash and cash equivalents stood at $78.6 million

Looking ahead, Sheng Siong says it will continue to nurture the growth of the new stores, rejuvenate the old stores, and build on the lessons learnt from the e-commerce project, amid an environment that is expected to remain competitive.

The group adds that it has successfully bid for two new stores at Bukit Batok Block 440 and Yishun Block 675, which are expected to be operational in 2Q18.

“Moving ahead, we will continue with our efforts in expanding the network of outlets in Singapore, especially in areas where our potential customers reside, and build our brand in China,” says group CEO Lim Hock Chee.

“In line with our gross margin enhancement initiatives, we remain committed to work towards a sales mix with a higher proportion of fresh produce and reducing the input costs by increasing direct purchasing and bulk handling,” he adds.

Share of Sheng Siong closed 2 cents higher at $1.02 on Friday.

Sheng Siong posts 6.6% rise in 1Q earnings to $18.3 mil

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