Supermarket operator Sheng Siong Group posted net profit of S$44.6 million for the third quarter ended Sep 30, up 1.8 per cent from a year earlier, the company said on Oct 29.
Revenue for the quarter climbed 6.2 per cent to S$441.5 million from S$415.5 million, driven mainly by a net increase in the number of stores. The group said growth moderated against a high base in the same quarter of 2025, when SG60 vouchers were distributed in July.
Margins and costs
Gross profit rose 8.6 per cent to S$142.3 million, and gross margin widened 0.7 percentage point to 32.2 per cent. The company attributed the improvement mainly to a better sales mix, which helped offset higher operating costs.
Other income increased 5.6 per cent to S$6.2 million, helped by a one-off recognition of supplier rebates.
Selling and distribution expenses rose 11.4 per cent to S$77.2 million, while administrative expenses grew 12.1 per cent to S$18.0 million. Sheng Siong said the increases reflected more staff for new stores, higher variable bonuses, higher depreciation on new leases and higher merchant fees from digital payments and its quick commerce business.
Operating cash flow fell 25.9 per cent to S$66.0 million, mainly because of earlier settlements to vendors. Cash and cash equivalents stood at S$388.9 million as at Sep 30.
Store network
The group opened three stores during the quarter, in Hougang, Rivervale and Woodlands, taking its new openings for the first nine months of 2026 to seven. It now runs 92 stores in Singapore, up from 84 a year earlier.
Chief executive Lim Hock Chee said the results over recent quarters reflect the group’s resilience amid rising business costs and a competitive operating environment.
Outlook
Sheng Siong said it expects grocery demand to remain resilient but costs to stay elevated, citing Progressive Wage Model wages, higher diesel-related transport costs and possible higher electricity costs when its energy contract is renewed.
It also pointed to the Johor Bahru-Singapore Rapid Transit System Link, now expected to start passenger service in February 2027, which it said may increase cross-border shopping and price competition, though the impact is uncertain.
The group said it plans to strengthen its supply chain, invest in automation and technology, and prioritise expansion in areas where it has limited presence. Its new distribution centre in Sungei Kadut is designed to support more than 120 supermarkets. The company said it remains cautiously optimistic.
