Sheng Siong’s Q2 income rises 11.3% to $15.2m

Thanks to new store growth.

Sheng Siong Group (SSG) saw an auspicious close to 2Q16, as profits for the quarter jumped 11.3% to $15.2m thanks to store expansions boosting topline.

According to a report by OCBC, revenue rose 5.5% YoY to $188.8m, driven by new store growth of 6%. This was partly mitigated, however, by 2.7% YoY from the temporary closure of Loyang Point store.

Moreover, same store sales growth (SSSG) of 2.2% was partially on back of the inclusion of the McNair store, which was closed in 2Q15.

Excluding the McNair store, SSSG would would have been 1.3%, which remains above the 0.5% contraction from Q1.

Meanwhile, gross profit margin also improved from 25.2% to 26.1% thanks to suppliers’ rebates and reduction in input cost from bulk handling.