Sheng Siong Group (OV8) Q4 2025 earnings summary

Executive summary

• Revenue for FY2025 rose 9.9% year-over-year to S$1,570.0 million, with net profit up 8.5% to S$149.2 million, driven by new store openings and higher same store sales.

• Gross profit margin improved to 31.3% from 30.5% in FY2024, reflecting stable profitability.

• Retail network expanded with 12 new stores in FY2025, bringing the total to 93 stores, with further expansion opportunities being pursued.

• China operations contributed 2.4% to total revenue, with higher expenses from the 6th store impacting profitability.

• A new store at Rivervale Crescent is expected to open in 3Q2026.

Financial highlights

• 2H FY2025 revenue increased 12.7% year-over-year to S$805.3 million; net profit grew 13.8% to S$76.9 million.

• Gross profit for FY2025 reached S$491.6 million, up 12.9% year-over-year.

• Net profit margin for FY2025 was 9.5%, nearly unchanged from 9.6% in FY2024.

• EPS increased 8.6% year-over-year to 9.94 cents.

• Other income declined 16.5% to S$16.0 million due to lower government grants and exchange gains.

Outlook and guidance

• Core inflation in Singapore expected at 1–2% in 2026, with resilient economic growth and GDP projected at 2-4% for 2025.

• Consumers remain cautious, favoring budget-friendly and house-brand products.

• Continued focus on store expansion, operational efficiency, and supply chain diversification.

• Two stores to close in 2026; new distribution center to support up to 120 supermarkets.

• Sector outlook remains positive, but risks from global trade and geopolitical tensions persist.