Listed Singaporean supermarket chain Sheng Siong’s profit soared 54.4 percent in the third quarter to US$23.27 million, riding a wave of increased sales in the grocery sector.
Revenue jumped 28.9 percent to $239.5 million, while gross profit grew 28.7 percent to $64.68 million, largely off the back of increased home cooking and stocking of pantries throughout, and beyond, the country’s Circuit Breaker period.
However, with stay-at-home orders easing across Sheng Siong’s markets, this elevated demand is likely to begin to stabilize in the following months, said CEO Lim Hock Chee.
“Competition in the supermarket industry is expected to remain keen and challenging among the traditional brick and mortar operations and e-commerce platforms, which have gained a larger share since the onset of Covid-19,” Chee said.
“The risks to supply chain disruption because of Covid-19 and other natural disasters are still there and may lead to higher input prices.”