Sheng Siong Q3 revenue increases 28.9% year-on-year

Date : 03 November 2020

Soo-Eng Tan

Senior Retail Analyst

Strong demand due to COVID-19 carried over to Q3.

Increased volume due to work from home

Net profit increased by 54% in Q3 to SG$31.8m (US$23.3m) compared to last year. In the first half of 2020, shoppers loaded up their pantries due to restricted movement imposed by the Singapore government. Although the lockdown was lifted in June, the government continued to encourage working from homes. Shoppers continued to dine-in and buy more groceries for their own households.

Demand likely to remain elevated

Shoppers’ demand has been increased since February, peaking in April/May 2020. The retailer has seen volumes stabilised in Q3 at levels higher than pre-COVID-19 levels. There will be more relaxation of COVID-19 restrictions moving forward. However, we expect Q4 volumes to remain high as many workers continue to spend a proportion of their time working from home.