Sheng Siong Group (OV8) Q3 2026 earnings summary

Executive summary

• 3Q FY2026 revenue rose 6.2% YoY to S$441.5m and profit increased 1.8% to S$44.6m; 9M revenue grew 9.9% to S$1,296.8m and profit rose 8.1% to S$125.5m.

• Growth reflected new store openings, while gross margin expanded YoY in both 3Q and 9M.

Financial highlights

• 3Q gross profit was S$142.3m (+8.6%), operating profit S$53.4m (+3.4%) and profit before tax S$53.5m (+2.4%).

• 9M gross profit rose 13.1% to S$414.7m and operating profit increased 11.0% to S$151.4m.

• 3Q basic and diluted EPS was 2.96 Singapore cents (+1.7%); 9M EPS was 8.34 cents (+8.0%).

• 3Q administrative expenses rose 12.1% to S$18.0m and selling and distribution expenses increased 11.4% to S$77.2m.

• 9M cash generated from operations fell to S$120.8m from S$175.4m, mainly due to earlier vendor settlements.

Outlook and guidance

• Value-conscious consumers, elevated living costs and CDC vouchers are expected to support demand for affordable groceries and house-brand products.

• Expansion will prioritize underrepresented areas; four public tenders await results, private lease opportunities are being explored, and the Serangoon North lease renewal is under discussion with JTC.

• Focus remains on supply-chain strength, sales-mix optimisation, resilience and productivity through automation, technology and operational improvements.

• China growth will focus on improving existing stores and supermarket operations in Kunming, with prudent new-store openings amid keen competition.