Singapore supermarket operator Sheng Siong Group prospered from Covid-19-related social-distancing measures and restrictions on dining out last year, reporting a boost of 84 per cent in pet profit to S$139.1 million.
Revenue surged 40.6 per cent to $1.394 billion and gross margin improved slightly to 27.4 per cent despite the impact of higher operating expenses during the pandemic.
Grocery demand rose during the first half of last year as Covid-19 caused a lockdown in the city state, forcing consumers to load up their pantries and dine at home. However Sheng Siong said that demand “remained elevated” compared to pre-Covid levels, even though restrictions were eased later in the year.
CEO Lim Hock Chee said that while the pandemic has delayed the opening of some new stores, the company’s expansion plan remains on track.
“We opened five new stores and closed one in FY2020, bringing our total store count to 63 and expanding our total retail area to 571,150 sq ft,” he said in a statement.
“Moving ahead, we remain committed to further expand our footprint by searching for suitable retail outlets in Singapore, particularly in areas where our customers reside but we do not have a presence. We will continue to nurture the growth of the new stores. Our focus is to improve profitability by enhancing gross margin through better cost efficiency in the supply chain as well as changing the sales mix to more fresh produce.”