Sheng Siong Group Ltd’s Annual Report: 15 Key Numbers Investors Should Know

Sheng Siong Group Ltd  (SGX: OV8) released its 2015 annual report a few months ago.

The retailer might be best known for its namesake chain of 39 supermarket stores around Singapore. But, there is much more to learn about Sheng Siong’s business. With this in mind, here are 14 figures from the annual report that investors might want to know:

  1. Sheng Siong has been developing its own housebrands over the last eight years. The retailer has created over 400 products under 10 housebrands.
  2. In 2015, Sheng Siong generated over $44 million in free cash flow. The retailer also spent over $30 million in capital expenditure, the majority of which was for the purchases of new shop lots at Yishun and the retrofitting of five new outlets.
  3. Sheng Siong has recently entered into a lease agreement for a 54,400 square feet retail space in Kunming, China. The supermarket chain expects to have its China soft opening in the fourth quarter this year.
  4. Elsewhere, Sheng Siong ended 2015 with $126 million in cash and equivalents on its balance sheet. Around $85 million is in fixed deposits, while another $36 million is kept in the bank. The remainder is considered cash on hand.
  5. The supermarket chain is also working hard to improve its productivity. Take its check-out system for instance. Sheng Siong implemented a hybrid self-payment system in 2015 where the company will help with the packing but let shoppers make the payment by themselves. This will save Sheng Siong 15 to 30 seconds per transaction.
  6. Sheng Siong paid out 3.5 cents per share in dividends for 2015. This amounted to over 92% of its net profit after tax. Sheng Siong has committed to pay out 90% of its net profit after tax for 2015 and 2016.
  7. Notably, Sheng Siong might need to pay over $52 million to fund its dividend for 2015. This amount exceeds the free cash flow generated for the year, which is $44 million.
  8. A survey by the National Environment Agency (NEA) revealed that over 687,000 tonnes of food was wasted in 2014. Sheng Siong has implemented strict food handling and storage procedures to minimize wastage.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.