Sheng Siong's profits surge 25.7% to $19.7m in Q3

Its new stores pulled revenue up by 3.9%.

Sheng Siong Group (SSG) is on a roll as its Q3 profits grew 25.7% YoY to $19.7m.

According to OCBC Investment Research, the increase was driven mainly by higher gross profit contributed largely to an increase in revenue of 4.2% to $210.9m and $2.2m in a refund of prior years’ taxes.

Higher revenue was driven by new stores, which rose 3.9%, and same store sales, which rose 1.7%. The new 4,000 sqft store at Bukit Panjang opened on August 17.

They were offset by a 1.4% YoY decline in revenue from Loyang Point and The Verge stores.

The 41,500 sqft store at Woodlands which contributed 4.5% of nine-month revenue, will be permanently closed on 17 November as HDB is redeveloping the land.

The fitting out of the new store in Kunming is not completed and subjected to regulatory approvals with operations targeted to commence before the end of 2017.