Sheng Siong Group (OV8) investor relations material

Executive summary

• Revenue for 1H FY2026 rose 11.9% year-over-year to S$855.4 million, with net profit up 11.9% to S$81.0 million and earnings per share rising 11.9% to 5.38 cents.

• Gross profit increased 15.6% to S$272.4 million, with gross margin improving to 31.8% from 30.8% a year ago.

• Four new stores opened and one closed in 1H FY2026, bringing the total to 90 stores in Singapore; three more openings and two potential closures expected in 2H FY2026.

• The Group continues to focus on operational resilience, productivity, and expanding its store network.

Financial highlights

• Operating profit rose 15.7% year-over-year to S$98.04 million, while operating expenses increased 15.4% to S$183.1 million.

• Cash and cash equivalents decreased by S$33.2 million to S$402.3 million as at 30 June 2026.

• Interim dividend declared at 3.75 cents per share, up from 3.20 cents last year.

• Net asset value per share increased to 40.70 cents from 39.11 cents at end-2025.

• Revenue per square foot for Singapore operations was S$1,098 in 1H FY2026, slightly down from S$1,101 in 1H FY2025.

Outlook and guidance

• Core inflation in Singapore is projected at 1.5%–2.5% for 2026, with consumers expected to remain cautious and favor budget-friendly supermarkets and house brands.

• The Group will continue to expand its store network, invest in automation, and enhance its online presence.

• Wage, compliance, and sustainability costs are expected to rise due to regulatory changes.

• Sungei Kadut distribution centre is under construction to support long-term expansion.

• Johor Bahru-Singapore RTS Link may intensify cross-border price competition in 2027.