Sheng Siong : Q1 2023 Business Update

SHENG SIONG GROUP LTD.

1Q FY 2023 Business Update

A. Consolidated Statement of Profit or Loss and Other Comprehensive Income

	The Group
	1st Quarter ended
	31 Mar 2023	31 Mar 2022	Change
	S$'000	S$'000	+/ (-)%
Revenue	356,545	357,955	(0.4%)
Cost of sales	(253,714)	(255,215)	(0.6%)
Gross profit	102,831	102,740	0.1%
Other income	2,434	3,321	(26.7%)
Distribution expenses	(1,879)	(2,105)	(10.7%)
Administrative expenses	(63,241)	(59,375)	6.5%
Other expenses	(1,285)	(1,337)	(3.9%)
Results from operating activities	38,860	43,244	(10.1%)
Finance income	2,741	388	606.4%
Finance expenses	(1,043)	(788)	32.4%
Profit before tax	40,558	42,844	(5.3%)
Tax expense	(7,206)	(7,655)	(5.9%)
Profit for the period	33,352	35,189	(5.2%)
Other comprehensive income
Item that is or may be reclassified
subsequently to profit or loss:
Foreign currency translation differences
- foreign operations	33	(94)	n.m
Total comprehensive income for the
period	33,385	35,095	(4.9%)

n.m denotes not meaningful

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SHENG SIONG GROUP LTD.

1Q FY 2023 Business Update

	The Group
	1st Quarter ended
	31 Mar 2023	31 Mar 2022	Change
	S$'000	S$'000	+/ (-)%
Profit net of tax for the period
attributable to:
Owners of the Company	33,243	35,115	(5.3%)
Non-controlling interest	109	74	47.3%
	33,352	35,189	(5.2%)
Total comprehensive income
attributable to:
Owners of the Company	33,263	35,058	(5.1%)
Non-controlling interest	122	37	229.7%
	33,385	35,095	(4.9%)

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SHENG SIONG GROUP LTD.

1Q FY 2023 Business Update

B. Statements of Financial Position

The Group	The Company
31 Mar 2023	31 Dec 2022	31 Mar 2023	31 Dec 2022
S$'000	S$'000	S$'000	S$'000

Assets

Property, plant and equipment Right-of-use assets Investment in subsidiaries Non-current assets

Inventories

Trade and other receivables

Cash and cash equivalents

Current assets

Total assets

Equity

Share capital

Merger reserve

Foreign currency translation reserve Statutory Reserve

Accumulated profits

Equity attributable to owners of the Company

Non-controlling interest

Total equity

Liabilities

Deferred tax liabilities

Lease liabilities

Non-current liabilities

Trade and other payables

Current tax payable

Lease liabilities

Current liabilities

Total liabilities

Total equity and liabilities

289,073	291,608	-	-
92,313	97,286	-	-
-	-	82,261	82,261
381,386	388,894	82,261	82,261
88,316	101,182	-	-
12,312	19,540	200,233	200,221
283,114	275,499	212	202
383,742	396,221	200,445	200,423
765,128	785,115	282,706	282,684
235,373	235,373	235,373	235,373
(68,234)	(68,234)	-	-
(570)	(590)	-	-
156	156	-	-
318,784	285,541	46,895	46,960
485,509	452,246	282,268	282,333
3,049	2,927	-	-
488,558	455,173	282,268	282,333
1,323	1,540	-	-
57,273	62,598	-	-
58,596	64,138	-	-
151,663	197,455	435	347
32,389	35,297	3	4
33,922	33,052	-	-
217,974	265,804	438	351
276,570	329,942	438	351
765,128	785,115	282,706	282,684

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SHENG SIONG GROUP LTD.

1Q FY 2023 Business Update

C. Consolidated Statement of Cash Flows
		The Group
		1st Quarter ended
		31 Mar 2023	31 Mar 2022
		S$'000	S$'000
Operating activities
Profit for the period	33,352	35,189
Adjustments for:
Depreciation of:
- property, plant and equipment	4,493	5,020
-	right-of-use assets	8,572	8,134
Loss/(gain) on disposal of property, plant and equipment	2	(2)
Unrealised exchange gains	(3)	(271)
Interest income	(2,741)	(388)
Interest expense	1,043	788
Tax expense	7,206	7,655
		51,924	56,125
Changes in:
-	inventories	12,866	11,522
- trade and other receivables	7,228	1,785
- trade and other payables	(45,791)	(42,780)
Cash generated from operations	26,227	26,652
Taxes paid	(10,332)	(4,942)
Cash flows from operating activities	15,895	21,710
Investing activities
Proceeds from disposal of property, plant and equipment	68	84
Purchase of property, plant and equipment	(2,023)	(1,608)
Interest received	2,741	388
Cash flows from/(used in) investing activities	786	(1,136)
Financing activities
Repayment of term loan	-	(5,000)
Interest paid	(990)	(737)
Payment of lease liabilities	(8,108)	(7,667)
Cash flows used in financing activities	(9,098)	(13,404)
Net increase in cash and cash equivalents	7,583	7,170
Cash and cash equivalents at beginning of the period	275,499	246,642
Effect of exchange rate changes on balances held in foreign	32	150
currencies
Cash and cash equivalents at end of the period	283,114	253,962

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SHENG SIONG GROUP LTD.

1Q FY 2023 Business Update

D.	Notes to Consolidated Financial Statements
1.	Significant items
			The Group
			1st Quarter ended
		Note	31 Mar 2023	31 Mar 2022
			S$'000	S$'000
	Depreciation of property, plant and equipment		(4,493)	(5,020)
	Depreciation of right-of-use assets	1	(8,572)	(8,134)
	Exchange gain, net		311	321
	Loss/(gain) on disposal of property, plant and equipment		(2)	2
	Staff costs	2	(50,927)	(49,734)
	Contribution to defined contribution plans, included
	in staff costs		(2,303)	(2,055)
	Interest income	3	2,741	388
	Interest expense	4	(1,043)	(788)
	Finance income/(expense), net		1,698	(400)
	Other income:
	Rental income		964	626
	Sale of scrap materials		464	908
	Government grants		653	1,019
	Miscellaneous income		353	768
			2,434	3,321

Notes

1. Four new leases for supermarket stores were entered in FY 2022, and one new lease was entered in the first quarter of 2023, which resulted in the increase in depreciation of right-of-use assets.
2. Due to the competitive labour market and the requirements of the Progressive Wage Model, the Group increased employees' salaries in FY 2022.
3. Higher interest income mainly resulted from the higher fixed deposit interest rate during 1Q FY 2023.
4. Interest expense pertained to the interest on lease liabilities.

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