Sheng Siong's profits drew an impressive 52.9% jump to S$41.7m.

But here's why it's not resting on its laurels just yet.

Sheng Siong Group Ltd. has released its financial statement for FY2012. It registered a 52.9% year-on-year increase in net profit to S$41.7 million for the 12 months ended 31 December 2012 . 

The increase in net profit was due mainly to contribution from the new outlets, improvement in comparable same store sales and a one-off gain of S$10.5 million from the disposal of the Marsiling warehouse. Stringent control over costs resulted in stable operating margins.

Revenue increased 10.2% yoy to S$637.3 million for FY2012 because of the opening of new outlets in FY2011 and FY2012 and improved comparable same store sales. This was partially offset by the closure of the Katong store in 3Q2011.

In FY2012, the Group opened 8 new stores adding a 14.9% yoy increase in retail area to 400,000 sq. ft. Located mostly in areas without a presence previously, the new stores are spread out across the island which includes Toa Payoh, Yishun Central, Jalan Besar, Geylang, Bukit Batok, Bedok North, Ghim Moh and Clementi.

With the macro environment still volatile and uncertain, the operating environment remains challenging.

The Group remains vigilant in its cost management and will strive to enhance margins by continued efforts in bulk handling, direct sourcing, improving sales mix and the introduction of additional housebrand products.

Mr. Lim Hock Chee, Chief Executive Officer of Sheng Siong, said “Our growth strategy over the longer term is clear. We will look to improve performance by expanding our store footprint and improving same store sales.

While we are pleased to achieve new highs in our expansion this year, we will continue to exercise prudence and caution in opening new outlets.

Given the defensive nature of our business and strong balance sheet, we are well-positioned to weather potential challenges in both the local and global economy.”