Sheng Siong Group (OV8) Q1 2025 earnings summary

Executive summary

• Revenue rose 7.1% year-over-year to S$403.0 million, driven by eight new stores and festive sales.

• Net profit increased 6.1% to S$38.5 million compared to the same quarter last year.

• Comparable same store revenue in Singapore grew marginally by 0.1%; China revenue up 0.7%.

Financial highlights

• Gross profit increased 10.2% to S$122.0 million; gross margin improved to 30.3% from 29.4%.

• Operating income rose 7.1% to S$45.1 million; profit before tax up 6.0% to S$46.8 million.

• Other income grew 18.1% to S$4.7 million, mainly from higher rental income and government grants.

• Cash and cash equivalents increased to S$366.9 million as at 31 March 2025.

Outlook and guidance

• Consumers remain cautious amid low inflation and global uncertainties, favoring value-driven supermarkets.

• Government support measures expected to sustain consumer spending and benefit supermarket sales.

• Group will focus on supply chain expansion, operational efficiency, and targeted store growth.

• Prudent approach in China, focusing on improving existing store performance.