Sheng Siong Group (OV8) Q4 2024 earnings summary

Executive summary

• Revenue for FY2024 rose 4.5% year-over-year to S$1.43 billion, driven by new store openings and higher comparable store sales.

• Net profit after tax increased 2.6% to S$137.5 million for FY2024, despite higher operating expenses.

• Eight new stores opened in Singapore and China, bringing the total to 81 stores as of year-end.

• Gross profit margin improved to 30.5% from 30.0% in FY2023, reflecting a favorable sales mix and cost management.

• Final dividend of 3.20 cents per share proposed, total dividend for FY2024 at 6.40 cents per share.

Financial highlights

• Revenue: S$1,428.7 million in FY2024, up from S$1,367.7 million in FY2023.

• Net profit: S$137.5 million, up from S$134.0 million, with EPS at 9.15 cents (FY2023: 8.89 cents).

• Gross profit: S$435.5 million, gross margin at 30.5% (FY2023: 30.0%).

• Cash and cash equivalents increased to S$353.4 million from S$324.4 million.

• Total assets grew to S$935.1 million, with equity at S$538.3 million.

Outlook and guidance

• Supermarket and hypermarket segment in Singapore continues to grow despite overall retail sales decline.

• Sector outlook remains positive with GDP growth forecasted at 1–3% and core inflation expected to ease.

• Company plans to expand store network, with two new stores opened in early 2025 and more tenders pending.

• Focus on operational efficiency, productivity, and supply chain diversification to mitigate risks.