Sheng Siong Group (OV8) Q1 2026 earnings summary

Executive summary

• Revenue for 1Q FY2026 increased by 12.4% year-over-year to S$452.8 million, driven by new store openings and festive sales.

• Net profit grew 12.6% to S$43.4 million, reflecting operational resilience and stable net margin of 9.6%.

• Gross profit margin improved to 31.0% from 30.3% a year ago.

• Singapore operations outperformed national supermarket growth benchmarks, with comparable same store sales up 3.5%.

• China operations contributed 2.1% to total revenue and achieved breakeven in 1Q FY2026.

Financial highlights

• Gross profit rose 15.0% year-over-year to S$140.3 million.

• Operating expenses increased by 15.1% year-over-year to S$93.9 million.

• Other income increased 26.6% to S$6.0 million, mainly from higher government grants.

• Cash and cash equivalents rose to S$461.1 million as of 31 March 2026.

• EPS improved 11.7% year-over-year to 2.87 S$ cents.

Outlook and guidance

• Focus remains on value-for-money offerings amid cautious consumer spending and high cost of living.

• Singapore's core inflation projected at 1.5%–2.5% in 2026; GDP growth forecast at 2.0%-4.0%.

• Plans to open at least 3 new stores per year, with 2 new stores in 2Q FY2026 and 1 in 3Q FY2026.

• Ongoing initiatives to improve operational efficiency, automate processes, and enhance supply chain resilience.

• China strategy remains cautious, focusing on existing store performance.