Sheng Siong Group has reported earnings of $67.4 million for the 1HFY2022 ended June, 2.2% higher than earnings of $65.9 million in the same period the year before.
The higher earnings came despite a 0.7% y-o-y dip in 1HFY2022 revenue of $676.8 million as Covid-19 measures were lifted in the 2QFY2022.
Amid the lifting of measures, this led to an increase in outdoor dining and overseas travel, which saw sales revenue returning to more normalised levels before the pandemic.
That said, gross profit for the period increased by 3.4% y-o-y to $199.1 million on the back of a 1.2 percentage point increase in gross profit margin (GPM).
GPM for the 1HFY2022 stood at 29.4%.
During the period, other income fell by 27.3% y-o-y to $5.5 million mainly due to the reduction in government grants.
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Net profit for the half-year period increased by 2.1% y-o-y to $67.5 million on the back of a 0.3 percentage point increase in net profit margin (NPM), which stood at 10.0%.
As at June 30, cash and cash equivalents stood at $234.3 million.
Looking ahead, the group says it sees the global inflationary pressures as leading to consumers tightening their belts.
This, in turn, may lead to consumers preparing meals at home more frequently or look towards house brand products for affordable value to ease the inflationary pressures.
The group has declared an interim dividend of 3.15 cents per share for the 1HFY2022, up from the previous interim dividend of 3.1 cents per share.
The dividend will be payable on Aug 31.
“The group continues to prospect for potential spaces, especially in new HDB estates where it does not have a presence. With the loosening of Covid-19 restrictions and the gradual recovery of the Singapore economy, construction of HDB projects is back on track and bringing about more store-opening opportunities,” says Lim Hock Chee, CEO of the group.
“The group is also seeking to continuously improve on its operating efficiency and productivity to counter competition and rising costs from global inflationary pressures,” he adds.
Shares in Sheng Siong closed flat at $1.60 on July 28.
