SUPERMARKET chain Sheng Siong on Tuesday (Feb 27) reported a 3.6 per cent increase in net profit to S$68.3 million for the second half of 2023, from S$65.9 million in the year-ago period.

This comes as the group doubled its finance income in the half year to S$5.8 million, from S$2.9 million in the corresponding period a year ago.

Sheng Siong said it generated higher interest income from placing more cash in fixed deposits at higher interest rates.

Staff costs, utilities and other expenses rose S$9.1 million on the half year, however.

H2 revenue, meanwhile, rose 2.2 per cent to S$677.2 million, from S$662.7 million in the year before, on the opening of six new stores in FY22 and FY23 in Singapore. The stores’ opening contributed 1.9 per cent to the growth, the company noted.

Earnings per share for the half was 4.54 Singapore cents, increasing from 4.38 cents.

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The board thus proposed a final one-tier cash dividend of 3.2 Singapore cents per share, higher than the 3.07-cent-per-share dividend announced in the previous year.

The dividend will be paid on May 17, if approved by shareholders at an annual general meeting to be held on Apr 25, the group declared.

With the final dividend, the group’s total dividend for the year would come up to 6.25 Singapore cents per share, higher than FY22’s 6.22 Singapore cents, it noted. This takes into account the interim dividend of 3.05 Singapore cents per share, which the company has already paid out.

For the full year ended Dec 31, 2023, Sheng Siong’s net profit was up 0.3 per cent on the year to S$133.7 million, while its revenue climbed 2.1 per cent to S$1.4 billion.

These were as operating profit after tax came in at S$134 million, higher than the previous year’s operating profit of S$133.6 million.

Staff costs in FY23, in particular, rose S$6.6 million as the company raised salaries in FY22 in response to the tight labour market. Utility expenses for the year grew S$13.8 million as the group had to renew its electricity supply agreement at the prevailing market rate at the end of FY22, the group added.

Meanwhile, new stores bumped up total sales slightly, by 2.5 per cent, while the closure of the Yishun Central store in July 2022 due to lease expiry caused sales to fall 0.3 per cent. 

As at Dec 31, 2023, Sheng Siong runs 69 stores in Singapore, and five stores in China, up a total of three stores from a year ago.

Shares of Sheng Siong closed flat at S$1.56 on Tuesday, before the results’ release.