Sheng Siong H2 internet revenue rises 4.8% to S$66.9m on increase from new retailer openings

SUPERMARKET operator Sheng Siong Group noticed earnings for the second half of fiscal 12 months 2021 ended December rise 4.8 per cent to S$66.9 million, from S$63.8 million within the corresponding year-ago interval.

Nevertheless, for the total 12 months, internet revenue was down 4.2 per cent to S$132.8 million from S$138.7 million in FY2020, as income fell 1.7 per cent to S$1.4 billion from a “excessive base” in FY2020 underpinned by elevated demand in H1 that 12 months as a result of Covid-19 pandemic.

Comparable same-store gross sales for the total FY2021 had been additionally down 4.8 per cent 12 months on 12 months, however this was partially offset by a 2.9 per cent increment from the full-year operations of 5 new shops that had been opened in FY2020, stated the corporate.

Income for H2 was up 6.4 per cent to S$688.1 million. The group attributed this to the opening of three new shops in Singapore in H2 FY2020 which collectively constituted 23.9 per cent of the increment. A brand new retailer was additionally opened in August and November every in China, which amounted to 9.7 per cent of the income increment.

Price of gross sales for H2, in the meantime, was up 3.4 per cent to S$487.3 million.

Following what was termed a “strong monetary efficiency”, Sheng Siong’s board of administrators has proposed a ultimate dividend of S$0.031 per share, up barely from a dividend of S$0.03 per share within the corresponding year-ago interval.

This may deliver the group’s whole money dividend for FY2021 to S$0.062 per share, down from S$0.065 per share in FY2020.

The dividend, if accredited by shareholders on the group’s annual common assembly on Apr 26, will probably be paid out on Might 20.

In its outlook assertion, Sheng Siong stated the emergence of the Omicron variant continues to impression the Singapore economic system, and the resultant uncertainty may have an effect on the corporate’s enterprise outlook.

Additional easing of restrictions in Singapore, coupled with an growing proportion of the inhabitants being vaccinated, might also consequence within the “elevated demand” to taper down as shoppers enhance their spending on different social actions or worldwide journey, stated the corporate.

Sheng Siong additionally famous that there have been growing provide chain pressures and better power costs leading to greater enter prices, though it stated there have been no main disruptions to the meals provide chain in FY2021 as a result of pandemic.

The group stated it should proceed its efforts to diversify provide sources, and work with its suppliers to minimise these disruptions.

Competitors within the grocery store trade can be anticipated to stay eager among the many “brick-and-mortar and on-line gamers”, stated the corporate, including that it’ll proceed to search for retail areas in new and present estates, notably in these the place the group has no presence. The corporate stated it should additionally optimise its provide chain to make sure larger effectivity and a beneficial gross sales combine to reinforce its gross margins.

Shares of Sheng Siong ended Wednesday flat at S$1.52.