Sheng Siong Group has reported a net profit of S$149.2 million for the 12 months ended Dec 31 2025, up 8.5 per cent year-on-year, supported by contributions from 12 newly opened outlets and firmer same-store sales.
Earnings per share rose 8.6 per cent to 9.94 Singapore cents. The board has proposed a final dividend of 3.80 cents a share, bringing the full-year payout to 7.00 cents, compared with 6.40 cents a year earlier. The proposed distribution represents a payout ratio of 70.4 per cent.
Revenue increased 9.9 per cent YoY to S$1.57 billion, while gross profit climbed 12.9 per cent to S$491.6 million as a richer sales mix lifted the gross margin by 0.8 percentage point to 31.3 per cent. Other income fell 16.5 per cent to S$16.0 million owing to lower government grants and foreign-exchange gains. Administrative costs rose 5.1 per cent to S$61.5 million and selling and distribution expenses expanded 14.3 per cent to S$270.4 million, reflecting higher headcount, wage adjustments under the Progressive Wage Model and larger bonus provisions.
As a result, the net profit margin was broadly stable at 9.5 per cent, easing by 0.1 percentage point. Operating cash flow strengthened 8.1 per cent to S$236.6 million, lifting cash and equivalents to S$435.5 million at end-December from S$353.4 million a year earlier.
Cost pressures from labour and supply-chain disruption remained a headwind, while reduced government support trimmed other income. Management noted that these factors partially offset the gains from higher sales and improved product mix.
Looking ahead, Sheng Siong plans to open a 5,344-square-metre outlet at 11 Rivervale Crescent in the third quarter of 2026 and is bidding for four new Housing & Development Board sites. Two existing stores—at Elias Mall and Thomson Imperial Court—are slated to close on lease expiry, but the group expects to maintain net store growth, supported by the 2025 agreement with JTC Corporation to develop a new distribution centre aimed at boosting logistics efficiency and margins.
Chief executive officer Lim Hock Chee said the company delivered “strong financial performance” despite macroeconomic headwinds, attributing the gains to the group’s value-for-money proposition and diversified supply chain. He indicated that Sheng Siong will focus on expanding its store network, refining its sales mix and enhancing cost efficiencies to sustain growth amid potential global trade uncertainties and inflationary pressures.