Sheng Siong Group (OV8) Q2 2026 earnings summary

Executive summary

• Revenue for 1H FY2026 rose 11.9% year-over-year to S$855.4 million, driven by new store openings and higher same store sales.

• Net profit increased 11.9% to S$81.0 million, with earnings per share up 11.9% to 5.38 cents.

• Gross profit margin improved to 31.8% from 30.8% a year ago, reflecting a better sales mix and cost management.

• The Group operates 90 stores in Singapore, with four new stores opened and one closed in 1H FY2026; three more stores are expected in 3Q FY2026.

• Interim dividend increased to 3.75 Singapore cents per share, up from 3.20 cents a year ago.

Financial highlights

• Gross profit increased 15.6% year-over-year to S$272.4 million.

• Operating profit rose 15.7% year-over-year to S$98.04 million.

• Cash and cash equivalents stood at S$402.3 million as of 30 June 2026, down S$33.2 million from end-2025.

• Operating expenses rose 15.4% year-over-year to S$183.1 million.

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

Outlook and guidance

• Core inflation in Singapore is projected at 1.5%–2.5% for 2026, with GDP growth forecasted at 2.0%-4.0%.

• Focus remains on expanding the store network, improving operational efficiency, and leveraging technology.

• Three new stores are expected to open in 3Q FY2026, with further tenders anticipated in the next 6–12 months.

• Sungei Kadut distribution centre under construction to support long-term expansion, expected completion by 2029.

• Partnership with Foodpanda launched to strengthen online retail presence and drive incremental sales.