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These 2 Companies Recently Announced Growth In Their Quarterly Earnings

We’re at the start of a new earnings season. As is common with every earnings season, there will be some real companies posting growth, some posting mixed numbers, and some experiencing declines.

So, which are the businesses that have recently shown growth? Let’s look at two of them:

1. Stock exchange operator Singapore Exchange Limited (SGX: S68) released its latest earnings two weeks ago. It was for the first quarter of its financial year ending 30 June 2018 (FY2018). The reporting period was from 1 July 2017 to 30 September 2017.

Singapore Exchange had a strong quarter in all. Revenue was up 7% year-on-year to S$204 million, while net profit climbed 9% to S$91 million. The company also kept its interim dividend unchanged at 5 cents per share.

Loh Boon Chye, the chief executive officer of Singapore Exchange, gave a good summary of the company’s performance in the earnings release:

“We are starting the financial year on a firm footing, with improved performance and healthy participation from customers across all business segments. We also saw record trading activity in our key foreign exchange (FX) futures contracts and traction in our fixed income business, which reaffirm our diversification strategy into these asset classes.”

Regarding Singapore Exchange’s outlook, the company expects momentum in market activity to continue and return to higher levels of past years. It is also seeking opportunities to collaborate with other exchanges to expand its business, as well as evaluating investments and partnerships to grow its foreign exchange, fixed income, and commodities businesses.

2. Sheng Siong Group Ltd (SGX: OV8) also released its latest 2017 third quarter results two weeks ago.

As a quick introduction, Sheng Siong is one of the largest supermarket chains in Singapore. The company’s network of 43 stores are primarily located in the heartlands of the island.

During the quarter, Sheng Siong experienced a 4.2% increase in revenue to S$210.9 million. Its profit climbed by 25.3% to S$19.6 million; if a one-off tax refund of S$2.2 million was excluded from the company’s results in the reporting quarter, its net profit would have increased by 11.5% year-on-year instead.

As for Sheng Siong’s future plans, Lim Hock Chee, the company’s chief executive officer, shared the following comments in the earnings release:

 “We have successfully opened a new store of 4,000 sq feet in Fajar 446 this quarter, expanding the Group’s total retail square footage to 431,000 sq feet. Our store expansion plans are on track as we have successfully bid for three new HDB shops at Woodlands Street 12, Edgedale Plains Block 660A and Anchorvale Crescent Block 338.

Moving ahead, we will remain focused on our store expansion plans in Singapore, particularly in areas where our potential customers are residing. Concurrently, we will continue to drive growth of our new and existing stores. Besides this, we remain committed to improve cost efficiencies through lowering input costs and operating overheads.”

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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. The Motley Fool Singapore has a recommendation for Singapore Exchange.

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. Motley Fool has a recommendation for Singapore Exchange Limited.