Singapore supermarket operator Sheng Siong Group reported Tuesday its first quarter net profit rose 13.9 percent on-year to S$35.2 million on higher same-store sales and new stores.
Revenue for the January-to-March period rose 6 percent on-year to S$358 million, the company said in a filing to SGX.
Comparable same-store sales rose 4.7 percent on-year in Singapore in the quarter, while the China same-store sales rose 1 percent on-year, the filing said, adding new stores contributed 0.3 percent to the revenue base.
Sheng Siong issued a cautious outlook, despite the Singapore government easing many Covid-related restrictions.
“Although the outlook may look positive to society, it is necessary to remain cautious as these similarly optimistic views early 2021 were dampened by the new Covid-19 variants. There is still a risk of supply chain disruptions arising from any new COVID-19 variants, the growing climate concern and geo-political events,” Sheng Siong said. “In addition, a major concern lies with the global inflationary pressure from the supply chain disruptions and other factors.”
But the supermarket operator noted inflation could be positive for its grocery sales.
“On the back of inflationary pressures, consumers are increasingly concerned with higher cost of living, and may choose to dine-in more at home, and look at ways to stretch their dollar,” Sheng Siong said. “This may continue to support sales at the supermarkets. The group will re-double its efforts in sourcing for differentiated and reliable supplies, working with its suppliers closely to reduce disruptions.”
Sheng Siong said it was targeting opening three to five new stores a year for the next three to five years, with a focus on areas where it doesn’t currently have a presence. The company added it was also looking to build its e-commerce operations for areas it doesn’t have a physical presence.