RETAIL | Staff Reporter, Singapore

Sheng Siong’s net profit jumps by 19.3% to $56.8m

Reaping time has come for its new stores.

Its expansion plan is finally paying off for the retail group, as contributions from new stores ultimately boosted Sheng Siong’s earnings by 5.3% to $764.4m.

According to a press release by Sheng Siong, gross profit margin increased from 24.2% to 24.7%, while selling prices were mostly stable.

“Opportunities to improve input costs continued to exist in FY2015, aided mostly by the global over-supply situation, weakening of emerging currencies leading to price discounts in cases where the suppliers invoice in Singapore Dollar and various margin enhancing initiatives taken by the Group,” the press release said.

Meanwhile, administrative expenses increased by $7.8m in 2015, due to the increase in staff costs to operate the new stores. A higher bonus provision was also accounted for arising from the improved financial performance of the group.

Rental expenses, on the other hand, remained at 2.7% of revenue due to the new stores.

“Cash generated from operating activities before working capital changes and payment of tax amounted to $79.9 million in FY2015, which was in line with the improved operating performance,” the press release said.

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