Sheng Siong posts 12.4% revenue growth in first quarter of FY2026
Singapore supermarket chain Sheng Siong Group reported a 12.4% rise in revenue to S$452.8 million for the first quarter of FY2026, with net profit climbing 12.6% to S$43.4 million, driven by new store openings and festive sales.
- Sheng Siong's revenue rose 12.4% to S$452.8 million, driven by new stores and festive sales.
- Net profit climbed 12.6% to S$43.4 million, with gross profit margin improving to 31.0%.
- Three new stores secured, with two opening in Q2 and one in Q3 FY2026.
Sheng Siong Group Ltd. reported a net profit of S$43.4 million for the three months ended 31 March 2026, an increase of 12.6% year-on-year, according to a press release issued by the company on 29 April 2026.
Revenue for the first quarter of FY2026 rose 12.4% year-on-year to S$452.8 million, compared with S$403.0 million in the same period a year earlier.
The group attributed the growth primarily to contributions from 12 new stores opened during FY2025, as well as stronger consumer spending tied to Lunar New Year in February and Hari Raya Puasa in March.
Gross profit improves on better sales mix
Gross profit grew 15.0% year-on-year to S$140.3 million. The gross profit margin improved by 0.7 percentage points to 31.0%, up from 30.3% in the same quarter last year.
The company said the improvement was supported by continued enhancements to its sales mix, which helped offset higher operating costs during the quarter.
Net profit margin held steady at 9.6%, unchanged from the corresponding period in FY2025. Earnings per share rose 11.7% to S$2.87 cents from S$2.57 cents in the prior year.
Operating costs rise with store network growth
Operating costs increased during the quarter. Administrative expenses rose 12.8% year-on-year to S$17.8 million, while selling and distribution expenses increased 15.6% to S$76.1 million.
The company said the higher costs were principally attributable to increased staff headcount to support a larger store network, higher variable bonuses linked to improved financial performance, and greater depreciation arising from additional store leases and the land lease at Sungei Kadut for a new Distribution Centre.
Other income increased 26.6% year-on-year to S$6.0 million, driven by higher government grants from the enhanced Progressive Wage Credit Scheme (PWCS), reduced net exchange losses, and growth in miscellaneous income.
Cash position strengthens
Cash flow from operating activities increased by S$11.6 million compared with the same period last year, a result the company attributed to higher profit and greater non-cash and digital payment receipts.
As of 31 March 2026, the group's cash and cash equivalents balance stood at S$461.1 million, up 5.9% year-on-year from S$435.5 million recorded as at 31 December 2025.
Three new stores secured for 2026
Chief Executive Officer Lim Hock Chee said the group had secured two new outlets at Block 336 Smith Street and Block 120 Canberra Crescent, both targeted to open in the second quarter of FY2026. A third store at 11 Rivervale Crescent is expected to open in the third quarter of FY2026.
Lim said the group was also awaiting five tender results to be released by the Housing and Development Board (HDB).
"The Group remained resilient amid macroeconomic uncertainties and delivered steady performance in the first quarter, reflecting our operational strength and solid fundamentals," Lim said. He added that the group remained committed to prudent cost management and would continue efforts to optimise its sales mix.
Macro headwinds cited as key risk
Looking ahead, the group flagged a range of macroeconomic risks. It cited ongoing geopolitical tensions, particularly conflicts in the Middle East and the war in Ukraine, as sources of potential supply chain disruption and energy cost pressure.
The Ministry of Trade and Industry (MTI) has revised Singapore's GDP growth forecast for 2026 to between 2.0% and 4.0%. The Monetary Authority of Singapore (MAS) has projected core inflation to rise to between 1.5% and 2.5%, up from an earlier estimate of between 1.0% and 2.0%.
The group said these conditions were making consumers more price-sensitive and shifting purchasing behaviour toward essential goods offering greater value. It identified this trend as consistent with Sheng Siong's positioning as a value-for-money retailer.
The company said it was responding to the uncertain environment by refining its sales mix, diversifying its supplier base to improve supply chain resilience, and investing in automation to manage rising labour costs.
Sheng Siong currently operates 87 outlets across Singapore, primarily in residential heartland areas. The group offers fresh produce, packaged goods, and general merchandise, and maintains 28 house brands spanning more than 2,035 products.
