Sheng Siong posts 14% jump in H2 profit to S$77.1 million; proposes dividend of S$0.038

[SINGAPORE] Supermarket operator Sheng Siong delivered a 14 per cent higher net profit of S$77.1 million for H2 FY2025 from S$67.6 million previously.

This comes as an improved sales mix and higher revenue offset rising operating costs.

In the financial results published on Friday (Feb 27), the operator posted a revenue of S$805.3 million for H2 FY2025, up 12.7 per cent from S$714.5 million in the previous corresponding period.

Administrative expenses and selling and distribution expenses also rose during the period. Administrative expenses were up 4.9 per cent at S$32.2 million, while selling and distribution expenses were 14.8 per cent higher at S$141.1 million.

It attributed these higher expenses to a larger workforce from new store openings, higher variable bonuses due to improved financial performance, and a salary hike for retail worker in September 2025 to meet Progressive Wage Model requirements.

Earnings per share for H2 FY2025 stood at S$0.0513, higher than the S$0.045 in the prior year.

A final dividend per share of S$0.038 was recommended – up from S$0.032 in FY2024. It will be paid out on May 15, subject to shareholders approval.

The total dividend for the year, inclusive of the interim dividend of S$0.032, is S$0.07, compared with S$0.064 for FY2024.

For FY2025, revenue was 9.9 per cent higher at S$1.6 billion from S$1.4 billion previously, primarily driven by the opening of 12 new stores in FY2025 and six in FY2024 in Singapore, as well as the improved performance of existing stores.

The earnings for the full year increased by 8.7 per cent to S$149.5 million from S$137.5 million in FY2024.

As at end of 2025, Sheng Siong had a total of 87 stores in Singapore, and aims to open three to five new stores every year.

Meanwhile, the tender results for another four stores from the Housing & Development Board are pending, while another three tenders are open for bidding. The company noted it will close two stores at Elias Mall and Thomson Imperial Court by mid-2026 as their leases end; these outlets accounted for 2.8 per cent of revenue last year.

“Having opened 12 new stores and entering an agreement with JTC to establish a new distribution centre in FY2025, we remain confident in future expansion opportunities to deepen our presence across Singapore,” said Lim Hock Chee, CEO of Sheng Siong.

Sheng Siong noted that consumers in Singapore are expected to remain cautious in their spending amid concerns about the high cost of living, which bodes well for its house brands and promotional items.

It added that government support measures in Budget 2026, including various vouchers, are expected to sustain consumer spending momentum.

The Progressive Wage Model requirements will increase labour costs over time and the implementation of the Beverage Container Return Scheme, along with sustainability-related initiatives and regulations will add complexity and costs.

The opening of the Johor Bahru-Singapore Rapid Transit System may influence consumer expending patterns.

Sheng Siong said that it would monitor developments and assess implications of the new cross-border transit system when it opens.

It added that it will “exercise prudence” in opening new stores in China, given the competitive landscape, and will focus on improving the performance of existing stores.

Shares of Sheng Siong closed up 0.4 per cent or S$0.01 to S$2.63 on Friday.