Local supermarket operator Sheng Siong announced that its FY2025 ended Dec 31, 2025, earnings have increased by 8.7% y-o-y to $149.5 million from $137.5 million.
This comes on the back of a 9.9% gain in revenue to $1.57 billion from $1.43 billion a year ago. This growth was primarily driven by the opening of 12 new stores in FY2025 and six comparable new stores opened in FY2024 in Singapore, as well as the improved performance of the existing stores.
In line with revenue, gross profit grew 12.9% to $491.6 million for FY2025 with a 0.8 ppts increase in gross margin to 31.3%. This was primarily attributed to the improvement in sales mix while navigating the rising business operation costs.
Other income dipped 16.5% to $16.0 million, as the group received lesser grants under the Progressive Wage Credit Scheme, as well as lesser unrealised exchange gain from USD-denominated fixed deposits. This was partly offset by higher operating income, as more retail space was rented out.
Administrative expenses increased by 5.1% to $61.5 million for FY2025, while selling and distribution expenses increased 14.3% to $270.4 million. This was mainly attributable to higher staff costs, arising from an enlarged workforce to support new store openings, increased bonus provisions in line with improved financial performance, and salary adjustments implemented in 2025 pursuant to the Progressive Wage Model for the retail sector. The group also incurred higher professional and advisory fees in connection with expanded business and operational activities.
On a 2HFY2025 basis, earnings were 14.0% higher y-o-y at $77.1 million, while revenue was 12.7% higher at $805.3 million.
As at end December 2025, cash and cash equivalents stood at $435.5 million.
Sheng Siong has proposed a final dividend of 3.8 cents per share. Along with the 3.2 cents interim dividend, the total dividend for FY2025 stands at 7 cents per share, up from 6.4 cents paid out last year. The payout ratio comes up to 70.4%.
Group CEO Lim Hock Chee says: "Despite the macroeconomic headwinds in 2025, the group delivered a strong financial performance and continued our store network expansion. Our commitment to provide quality products at affordable prices has continued to resonate with consumers, while our diversified supply chain supports effective cost management and allow us to provide a wide and reliable product selection to customers."
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Lim adds that as part of the group's expansion strategy, a new store at 11 Rivervale Crescent has been secured and expected to open in 3Q2026. The group is also awaiting the tender results for four stores released by HDB. Two stores – Elias Mall and THomson Imperial Court – are expected to close this year due to the end of their leases.
"Having opened 12 new stores and entering an agreement with JTC to establish a new distribution centre in FY2025, we remain confident in future expansion opportunities to deepen our presence across Singapore," adds Lim.
Shares in Sheng Siong closed at $2.63. The counter is up 59.4% in the past 12 months.
