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These 2 Companies Recently Reported Growth In Their Latest Earnings

Photo credit: Rafael Matsunaga. Licence: http://creativecommons.org/licenses/by/2.0/

We’re nearing the end of the earnings season!

As is common with every earnings season, there will be some companies posting growth, some companies posting flat numbers, and some companies experiencing declines. So, which are the companies that have recently reported growth in their latest results? Let’s look at two of them:

1. In early May, Sembcorp Industries Limited (SGX: U96) released its 2017 first quarter earnings.

As a quick background, Sembcorp Industries is a bona-fide conglomerate given its three major operational business segments: Utilities, Marine, and Urban Development & Others.

During the reporting quarter, the company enjoyed 12.9% year-on-year revenue growth. Its profit attributable to shareholders was also up 11.3% year-on-year. But, the company’s balance sheet had weakened compared to a year ago and it generated negative free cash flow.

There may be changes to come for Sembcorp Industries. The company appointed a new CEO, Neil McGregor, on 1 April 2017 after its previous leader, Tang Kin Fei, stepped down at the end of March. In Sembcorp Industries’ 2017 first quarter earnings, McGregor announced that the company will be undertaking a complete review of its businesses and strategic direction.

2. Sheng Siong Group Ltd (SGX: OV8) is next on my list. The company released its 2017 first quarter earnings in late April.

In the reporting quarter, Sheng Siong experienced a 4.1% increase in revenue compared to a year ago. There was also slightly stronger 4.3% growth in profit. The company’s revenue growth was driven mainly by the opening of new stores (there was flat same store sales growth).

Speaking on its future, Sheng Siong said in the earnings release that it remains focused on expanding its retail network in Singapore, “especially in areas where [it does] not have a presence.” The company ended the first quarter of 2017 with a strong balance sheet that had S$68.3 million in cash and no debt. The strong balance sheet gives Sheng Siong the resources to pursue its growth strategy.

Sheng Siong is one of the largest supermarket chains in Singapore and currently has 43 stores across the island.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.