- Sheng Siong (SGX:OV8) reported solid quarter, but wages and utilities continue to weigh on profits.
- 9M23 results tracking our FY23 estimates on sustained gross margins and same-store sales resuming growth.
3Q23 revenue increased 3.7% y-o-y to S$345.8m.
- - Read this at SGinvestors.io -
- Same-store sales grew 1.8% in 3Q23 and 0.2% in 9M23, marking a return to growth after five consecutive quarters of decline.
- New store openings also contributed a 2.2% y-o-y sales uplift in 3Q23. Growth was offset by the closure of its Yishun Central store, as the lease expired (-0.2%), and relatively flat performance in China (-0.1%).
3Q23 earnings rose 6.0% y-o-y to S$34.7m.
- - Read this at SGinvestors.io -
- In terms of gross margin, it expanded y-o-y from 29.4% in 3Q22 to 30.3% in 3Q23.
- Net interest income also increased substantially from S$1m in 3Q22 to S$2.8m in 3Q23, as Sheng Siong was able to obtain ~4% interest on its substantial cash reserves.
Company continues to maintain high cash balance, at S$289m.
- Read more at SGinvestors.io.
