SINGAPORE (Feb 22): Sheng Siong reported a 9.3% rise in 4Q17 earnings to $16.8 million compared to $15.4 million in 4Q16.
This brings FY17 earnings to $69.8 million, 11.4% higher than $62.7 million in FY16, mainly attributable to contributions from the group’s new stores, as well as higher contributions from comparable same store sales.
Revenue for the quarter was 1.7% higher at $200.3 million from $197.0 million a year ago.
As cost of sales remained flat at $145.2 million, gross profit for 4Q17 stood at $55.1 million, 6.3% higher than $51.8 million last year.
Other income saw a 68.5% increase to $3.99 million from $2.37 million in the previous year, due increased income from sale of scrap material and government grants, but was partially offset by a decrease in rental and miscellaneous income.
Government grants for the quarter increased to $2.56 million, compared to $0.73 million a year ago. The government grants were from various Government agencies in partial support of productivity improvement programs as well as grants under the Wage Credit, Special Employment Credit and Temporary Employment Schemes.
As at Dec 31 2017, the group’s cash and cash equivalents stood at $72.4 million.
The group has declared a final cash dividend of 1.75 cents per share, which will be payable on May 17.
Lim Hock Chee, CEO of Sheng Siong, says, “Moving forward, we remain committed to expanding our retail network in Singapore to reach out to our potential customers in areas where we do not have a presence. Besides nurturing the growth of our new stores and improving comparable same store sales, improving cost efficiency remains as one of our priorities. To achieve greater cost efficiency, we will focus on increasing direct and bulk purchasing, driving for a high mix of fresh produce and reducing overheads as a percentage of revenue.”
Shares in Sheng Siong closed at 92 cents on Thursday.
