Sheng Siong's third-quarter net profit grew 1.9%, trailing 6.2% revenue growth, as its shares dropped as much as 9.4% on Nov. 2, The Straits Times reported.
For the quarter ended Sept. 30, the Singapore grocer recorded S$44.6 million in net profit, compared with S$43.7 million a year earlier. Revenue reached S$441.5 million, up from S$415.5 million. Sheng Siong credited the sales gain to an expanded store base in Singapore and stronger performance at comparable stores.
The Straits Times said the stock ended Oct. 30 at S$2.67, down 4.6% that day, before touching S$2.42 during trading on Nov. 2, when its decline reached 9.4%.
At the results briefing, management said persistent discounting amid strong grocery competition could weigh on revenue and margins. It also flagged higher labor costs, including wage increases associated with Singapore's Progressive Wage Model and National Wages Council guidance for 2026 to 2027. The Straits Times reported that Sheng Siong raised retail workers' salaries in September 2025 to meet Progressive Wage Model requirements for the sector.
DBS analyst Chee Zheng Feng expects earnings growth to slow further in the fourth quarter, The Straits Times reported, citing an Oct. 30 note. Chee pointed to a prior-year comparison boosted by SG60 vouchers and the full-quarter effect of the Thomson Imperial Court store closure on Sept. 25. He also cited higher utility and staff costs as potential pressures on profitability. DBS kept its hold rating and S$3 target price, the newspaper reported.
Sheng Siong said it would adjust its strategy as plans for the Johor Bahru-Singapore Rapid Transit System (RTS) Link develop, according to The Straits Times. The paper reported that the cross-border service is due to begin in February 2027 and may draw more shoppers across the border, adding price pressure for some packaged foods and household goods.
