Sheng Siong Group (OV8) Q1 2026 earnings summary

Executive summary

• Revenue rose 12.4% year-over-year to S$452.8 million, driven by 12 new stores opened in FY2025.

• Net profit increased 12.6% to S$43.4 million, with comparable same store sales in Singapore up 3.5%.

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

• China operations accounted for 2.1% of revenue and achieved breakeven.

Financial highlights

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

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

• Selling and distribution expenses rose 15.6% due to higher staff costs and depreciation from new stores.

• Administrative expenses increased 12.8%, mainly from higher headcount and bonuses.

• Effective tax rate was 17.4%, slightly above the statutory rate due to non-deductible expenses.

Outlook and guidance

• Retail environment in Singapore remains mixed, with inflation and geopolitical risks impacting costs.

• Continued focus on supply chain optimization, sales mix improvement, and automation.

• Two new stores to open in 2Q 2026, one in 3Q 2026; some store closures and lease extensions planned.

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