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10 Quick Things Investors Should Know From Sheng Siong Group Ltd’s Latest Earnings

Last week, Sheng Siong Group Ltd (SGX: OV8) announced its 2017 fourth-quarter earnings. As a quick introduction, Sheng Siong is one of the largest supermarket chains in Singapore. The company’s network of 47 stores are primarily located at the heartlands of the island.

Here, I will look at 10 things that investors should know from its latest earnings update:

1. Quarterly sales revenue improved 1.7% year-on-year to S$200.3 million. Full-year revenue grew 2% year-on-year to S$829.9 million.

2. Gross profit for the quarter rose 6.3% year-on-year to S$55.1 million. Full-year operating profit was up by 6.2% to S$217.4 million.

3. Quarterly net profit grew 8.1% year-on-year to S$16.7 million. Full-year net profit was up by 10.9% to S$69.5 million.

4. Earnings per share (EPS) for the quarter was up by 9.8% year-on-year to 1.12 cents. Full-year EPS was improved by 11.3% to 4.64 cents.

5. Quarterly gross margin was 26.5%, marginally higher than previous year’s 26.3%. Full-year gross margin was at 26.2%, up from 25.7% a year ago.

6. Year-to-date, Sheng Siong generated an operating cash flow of S$78.5 million, up from S$78.1 million last year.

7. Sheng Siong had no borrowings while its cash and cash equivalents stood at S$73.4 million, as at 31 December 2017.

8. The expansion of the warehouse is on track and should be completed before the end of this year, adding around 97,000 square feet of storage area.

9. The company recommended a final dividend of 1.75 cents, bringing total dividends for the year to 3.30 cents.

10. The company said the following on its future plans:

“We are delighted to remain on track for our store expansion plans with the opening of three new stores in Fajar Road, Edgedale Plains and Woodlands Street 12 in FY2017. In addition, we have also opened three new stores in Fernvale Street, Anchorvale Crescent and Canberra Street in the early part of 2018 and we are expecting another new store in ITE Ang Mo Kio to be operational in early April 2018.”

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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.