Sheng Siong Group (OV8) Q2 2025 earnings summary

Executive summary

• Revenue for 1H FY2025 increased by 7.1% year-over-year to S$764.7 million, driven by new store openings in Singapore and China.

• Net profit rose 3.4% to S$72.3 million, supported by improved gross profit margin and higher operating income.

• Gross profit margin improved by 0.7 percentage points to 30.8% due to better sales mix and cost management.

• Store network expanded with 5 new stores in 1H FY2025, reaching 82 outlets by July 2025, with further expansion planned.

• Interim dividend maintained at 3.20 Singapore cents per share.

Financial highlights

• Gross profit increased 9.6% year-over-year to S$235.6 million.

• Operating expenses increased by 12.2% to S$158.7 million, mainly from higher selling and distribution costs.

• Cash and cash equivalents increased to S$367.2 million as of 1H FY2025.

• Operating profit rose 4.7% to S$84.8 million; profit before tax up 2.9% to S$87.5 million.

• Cash flow from operating activities decreased to S$86.4 million from S$93.0 million year-over-year.

Outlook and guidance

• Focus remains on value-for-money offerings amid macroeconomic uncertainties and subdued consumer sentiment.

• Expansion to continue with new stores opening and tenders for additional locations underway.

• Plans to enhance efficiency and productivity through technology, automation, and supply chain diversification.

• Expects government support measures to sustain consumer spending and supermarket sales.

• Prudent expansion planned in China, with ongoing efforts to build brand presence in Kunming.