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These 2 Companies Recently Announced Growth In Their Quarterly Earnings

We’ve come to the tail-end of the 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.

Sheng Siong Group Ltd (SGX: OV8) is the first company to be featured.

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 in the heartlands of the island.

For the fourth quarter ended 31 December 2017, revenue was up by 1.7% year-on-year to S$200.3 million. Along with it, gross profit improved 6.3% year-on-year to S$55.1 million. With that, net profit improved 6.3% year-on-year to S$ 55.1 million.

For the whole of 2017, Sheng Siong generated operating cash flow of S$78.5 million, up from S$78.1 million a year ago. On its balance sheet, it had a cash balance of S$73.4 million with no debt, as at 31 December 2017.

Lim Hock Chee, the firm’s chief executive, provided some updates on the 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.

Moving forward, we remain committed to expanding our retail network in Singapore to reach out to our potential customers in areas where we do not have a presence. Besides nurturing the growth of our new stores and improving comparable same store sales, improving cost efficiency remains as one of our priorities. To achieve greater cost efficiency, we will focus on increasing direct and bulk purchasing, driving for a high mix of fresh produce and reducing overheads as a percentage of revenue.”

iFAST Corporation Ltd (SGX: AIY) is another company that announced positive results recently.

The firm is an Internet-based investment products distribution platform that has a presence in Singapore, Hong Kong, Malaysia, China and India. It has two main business divisions – one that caters to consumers (B2C) and the other that caters to businesses (B2B).

For the fourth quarter ended 31 December 2017, net revenue was up by 21.4% year-on-year to S$13.17 million while profit attributable to investors rose by 70.3% year-on-year to S$3.64 million. As a result, earnings per share grew from 0.43 cents a year ago to 0.93 cents. As at 31 December 2017, iFAST had cash and cash equivalents and other investments of S$55.91 million with zero debt.

The strong quarterly improvement was due to growth in iFAST’s asset under administration (AUA). Its AUA climbed 24.3% year-on-year to hit a record high of S$7.58 billion, as at 31 December 2017.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of iFAST Corporation Ltd. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.