Sheng Siong has reported a leap in net profit for the second quarter to June.

The Singapore-based supermarket chain said profit rose 20.8 per cent to S$8.5 million (US$6.7 million)

The company attributed the gain on higher revenue and better gross profit margin.

Revenue increased 8.7 per cent, largely because of the increased contribution from new stores, it says.

Sheng Siong says competition in the supermarket industry is likely to remain keen. Competition for retail space has not abated and securing new retail outlets could be challenging going forward, it says.

However, it says it remains focused on increasing its retail presence as well as enhancing its product sales mix and improving on its processes to achieve cost savings.

“We will remain prudent in this uncertain environment,” said CEO Lim Hock Chee.

“The key driver of our strategy will be to expand our retail presence in Singapore, particularly in areas where we do not have a presence and to nurture the growth of the new stores,” he said.

As at June 30, Sheng Siong had operated 33 stores.