Sheng Siong profits climbed 11.4% to $69.79m in 2017

The opening of its new stores contributed the most to its revenue of $829.88m.

Sheng Siong’s revenue rose 4.2% YoY to $829.88m. About 4.5% was contributed by the new stores, 2.1% by comparable same-store sales from the old stores, but was offset by a reduction of 2.4% arising from the temporary closure of the Loyang Point store and the permanent closure of The Verge and Woodlands Block 6A stores.

“Comparable same-store sales improved in the second half of the year as consumers’ sentiments improved probably because of Singapore’s better economic performance as well as the expansion of store space. The Loyang Point, Verge and Woodlands Block 6A stores were not included in computing comparable same-store sales as they were not fully operational either during the period under review or in the corresponding prior period,” Sheng Siong said.

Administrative expenses increased by $5.3m YoY mainly because of higher staff costs of $3.6m arising from higher bonus provisions because of the better financial performance in 2017, as well as higher headcount required to operate the new stores, notwithstanding the redeployment of staff from the closed Verge and Woodlands Block 6A stores.

Sheng Siong’s subsidiary in Kunming, China commenced operation in November 2017 in a limited manner as a number of the shops in the new shopping complex where the supermarket is situated have yet to open for business. Including pre-operating costs, the Group’s share of the losses was $0.4m.