Sheng Siong profits up on network expansion
In this article (4)
Singaporean supermarket chain Sheng Siong has reported a 16.4-per-cent year-on-year increase in net profit to SG$20.6 million (US$15.1 million) for the third quarter.
The increase is largely attributed to an increase in gross profit arising from the growth in revenue, slightly improved gross margin, and higher other income – but was partially offset by higher operating expenses and net finance expense.
“We are pleased that we have opened two new stores at Block 182 Woodland Street 13 and Block 602A Tampines Ave 9 with retail areas of 8500sqft and 9000sqft respectively while another store at Block 202 Marsiling Drive which we have secured will be operational by the first quarter of next year,” said the group’s CEO Lim Hock Chee. “Going ahead, we will continue with our efforts in expanding our retail network in Singapore, especially in areas where our potential customers reside.
“Besides placing focus on nurturing the growth of our new stores in Singapore and China, we remain committed to enhancing the gross margin and lowering input cost by improving the sales mix with a higher proportion of fresh produce and deriving more efficiency gains in the supply chain.”
Questions & Answers
Q.What is the primary reason for Sheng Siong's increase in net profit for the third quarter?
What is the primary reason for Sheng Siong's increase in net profit for the third quarter?
The increase in net profit is largely attributed to a rise in gross profit, stemming from revenue growth, a slightly improved gross margin, and higher other income during the period.
Q.What initiatives does Sheng Siong plan to undertake to enhance its gross margin in the future?
What initiatives does Sheng Siong plan to undertake to enhance its gross margin in the future?
Sheng Siong plans to enhance its gross margin by improving the sales mix with a higher proportion of fresh produce and by deriving more efficiency gains within its supply chain operations.
Q.Where has Sheng Siong recently opened new stores, and when will another new location become operational?
Where has Sheng Siong recently opened new stores, and when will another new location become operational?
Sheng Siong recently opened new stores at Block 182 Woodland Street 13 and Block 602A Tampines Ave 9. Another store at Block 202 Marsiling Drive is expected to be operational by the first quarter of next year.
Reader pulse
Sheng Siong's expansion strategy:
21,583 votes so far