Sheng Siong Group (OV8) Q3 2025 earnings summary

Executive summary

• Revenue for 3Q FY2025 increased by 14.4% year-over-year to S$415.5 million, driven by new store openings and improved same-store sales.

• Net profit for 3Q FY2025 rose 12.0% year-over-year to S$43.8 million, reflecting strong operational performance and expansion.

• Store network expanded with 9 new stores in 9M FY2025, reaching 90 stores, with four new stores opened in 3Q FY2025 and further expansion planned.

• Announced a major S$520 million investment in a new warehouse, distribution centre, and HQ at Sungei Kadut.

• 9M FY2025 net profit up 6.5% to S$116.1 million.

Financial highlights

• 9M FY2025 revenue grew 9.5% year-over-year to S$1,180.2 million; 3Q FY2025 revenue was S$415.5 million (+14.4% YoY).

• Gross profit margin for 3Q FY2025 was 31.5%, up 0.2 percentage points year-over-year.

• Net profit margin for 3Q FY2025 was 10.5%, down 0.3 percentage points year-over-year.

• EPS for 3Q FY2025 was 2.91 cents (+11.9% YoY); 9M FY2025 EPS was 7.72 cents (+6.5%).

• Cash and cash equivalents increased to S$393.7 million as at 30 Sep 2025.

Outlook and guidance

• Grocery demand expected to remain resilient, supported by government vouchers and easing inflation.

• Expansion to continue with new stores and a new distribution centre to support long-term growth, targeting at least 120 supermarkets.

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

• China operations contributed 2.5% to 9M FY2025 revenue, with ongoing efforts to nurture growth in Kunming, though the segment posted a deficit.

• External risks include US-China trade tensions, supply chain disruptions, and regulatory changes increasing costs.