Sheng Siong reports 2021 net profit edged down

Sheng Siong Supermarket in Singapore’s Little India area; taken October 2018.Sheng Siong Supermarket in Singapore’s Little India area; taken October 2018.

Supermarket chain Sheng Siong reported Wednesday its 2021 net profit declined 4.3 percent on-year to S$133.1 million after Covid-19 lockdowns in 2020 led to elevated demand a year earlier.

Revenue for the 12 months ended 31 December slipped 1.7 percent on-year to S$1.37 billion, the supermarket operator said in a filing to SGX.

The net profit margin for the year came in at 9.7 percent, down 0.3 percentage point on-year, Sheng Siong said.  

Comparable same store sales fell 4.8 percent on-year, partly offset by the full year operations of five new stores opened in 2020, the filing said.

Other income tumbled 70.6 percent on-year in 2021 to S$12.1 million on lower government grants as the environment stabilised as the pandemic progressed, the filing said. Government grants in 2021 were S$4.8 million, compared with S$34.9 million in 2020, the filing said.

Sheng Siong proposed a final dividend of 3.1 Singapore cents a share, taking 2021’s total dividend to 6.2 Singapore cents a share. For 2020, Sheng Siong paid a final dividend of 3.0 Singapore cents a share, for a total 2020 dividend of 6.5 Singapore cents.

Outlook

In its outlook, Sheng Siong noted that expectations for further easing of Covid-related measures may result in the elevated demand in grocery stores declining as consumers increase spending on social activities and travel.

“Although there were no major disruptions to the food supply chain in FY2021 due to Covid-19, we observe increasing supply chain pressures and higher energy prices resulting in higher input costs,” Sheng Siong said. 

“There are also risks of disruptions from climate or geo-political events that may affect input prices. We continue with our efforts in diversifying our sources of supply and work closely with our suppliers to minimize these disruptions,” the company added.

Read more details on Sheng Siong’s results.