Sheng Siong Group (OV8) Q2 2025 earnings summary

Executive summary

• Revenue rose 7.1% year-over-year to S$764.7 million for the six months ended 30 June 2025, driven by 11 new store openings in Singapore and China.

• Net profit increased 3.4% year-over-year to S$72.3 million, with improved gross profit margin and higher operating income.

• Store count in Singapore reached 82 by July 2025, with further expansion planned.

Financial highlights

• Gross profit margin improved to 30.8% from 30.1% year-over-year, reflecting a better sales mix and cost management.

• Operating profit rose 4.7% to S$84.8 million; profit before tax up 2.9% to S$87.5 million.

• Cash and cash equivalents increased to S$367.2 million as at 30 June 2025, up S$13.8 million from 31 December 2024.

• Interim dividend of 3.20 cents per share declared, same as prior year.

Outlook and guidance

• Inflationary risks and global uncertainties may impact consumer spending, but government support and value-focused shopping are expected to sustain supermarket sales.

• Expansion to continue with new stores opening and tenders for additional locations underway.

• Focus on efficiency, automation, and supply chain diversification to mitigate cost pressures.