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Growth year for Sheng Siong supermarkets

Net profit rose last year for Singaporean supermarket chain owner Sheng Siong Group.

The 10.9 per cent rise to S$69.5 million was the result of a 6.2 per cent increase in gross profit brought about by 4.2 per cent growth in revenue. Gross margin improved to 26.2 per cent. A $2.2 million tax refund was offset by higher running costs.

Excluding the tax refund, the increase in net profit was 7.5 per cent.

Revenue growth was driven by new stores, however same-store sales increased 2.1 per cent, offset by a 2.4 per cent reduction arising from the temporary closure of the Loyang Point store and the permanent closure of The Verge and Woodlands Block 6A stores.

Same-store sales improved in the second half of the year as Singapore consumer sentiment improved.

Fourth-quarter revenue increased by 1.7 per cent, with new stores up 2.7 per cent, and same-store sales up 3.2 per cent.

With Singapore’s economy expected to grow moderately this year and recovery of retail sales likely to continue, competition in the supermarket industry is expected to remain keen, says Sheng Siong.

The group opened a supermarket in Kunming in November, but its impact has been limited as many shops in the new mall have yet to open.

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