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Which Singapore-Listed Supermarket Share Should Investors Buy Now? Part 2

There are two major listed supermarket shares in Singapore.

Dairy Farm International Holdings Ltd (SGX: D01) runs its retail business under brands such as GuardianCold StorageGiant Hypermarket, and 7-Eleven while Sheng Siong Group Ltd (SGX: OV8) operates its namesake-branded stores.

Interestingly, both company shares have outperformed the Straits Times Index (SGX: ^STI) in 2018. Given the interest in the companies, investors might want to know which of the two supermarkets they should consider investing now.

In my previous article here, I compared the recent earnings performance of both companies. The result was a tie between the two.

In this article, I will compare their track record of growth in the last five years. The objective is to find out which company did a better job in growing its business in the last five years.

The showdown

Let’s begin with Dairy Farm.

From 2013 to 2017, Dairy Farm’s revenue grew from US$10.4 billion to US$11.3 billion. Yet, net profit attributable to shareholders fell from US$500.9 million to US$403.5 million. The former was up by 9% while the latter was down by 19% during the time frame.

Next, we have Sheng Siong.

During the same period, Sheng Siong’s revenue improved from S$687.4 million in 2013 to S$829.9 million in 2017. Similarly, net profit attributable to shareholders climbed from S$38.9 million to S$69.5 million. The former increased by 21% while the latter jumped by 79% during the period.

The Foolish conclusion

In all, we can see that Sheng Siong performed better than Dairy Farm in the last five years, both in terms of revenue and net profit.

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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. Motley Fool has recommendations for Dairy Farm International Holdings Ltd and Sheng Siong Group Ltd.