Sheng Siong FY11 Earnings Slump 36.1%
Local supermarket chain, Sheng Siong Group, reported FY11 earnings of $27.3 million on revenue of $578.4 million, a slump of 36.1 percent and 8 percent respectively over FY10 figures. The closure of outlets at the Ten Mile Junction and Tanjong Katong contributed to the dip in revenue as both buildings were sold for redevelopment. However, the addition of four new outlets – Elias Mall, Tech Whye, Woodlands Industrial Park and Thomson Imperial Court, helped to negate some of the losses. The slump in earnings in FY11 was chiefly due to a reduction in other income as well as one-off IPO expenses. The decline in other income was mainly due to several one-off income sources including a $9.6 million gain from the divestment of listed equities booked in 2010 and the loss of retail rental of $1.5 million from the Ten Mile Junction outlet. The firm has recommended a cash dividend of $0.0177 per share, providing a dividend payout ratio of around 90 percent. As of December 2011, the firm has in operations a total of 25 outlets, an increase of two outlets over 2010, thus expanding retail area by 3.3 percent year-on-year.
Significance: The retail market in Singapore is expected to remain steadfastly challenging in view of uncertain global economic outlook, limited population growth and competition. However, Sheng Siong expects its FY12 performance to be boosted by contributions from new outlets as well as the one-off gain from the sale of its Marsiling warehouse.
Petra Foods’ FY11 Results Boosted By Strong Demand
Petra Foods, a major manufacturer and supplier of cocoa and other confectionary products, registered robust results in its FY11 earnings report card. For its financial year ended on 31 December 2011, Petra filed a 36.2 percent jump in earnings to US$60.6 million ($76 million). The firm’s strong FY11 performance was underpinned by US$1.7 billion ($2.1 billion) in sales generated as revenue was boosted by strong demand globally for customised cocoa ingredients and increased regional consumption. Petra has proposed a final dividend of $0.0261 per share, if approved will result in a FY11 total cash dividend of $0.0484 per share.
Significance: In anticipation of a global economic downturn, Petra has taken to further stimulate consumer demand through the expansion of its product portfolio, increasing production and distribution capacity as well as exploring strategic alliances.
ST Engineering Nails 7.4% Growth For FY11 Earnings
Singapore Technologies Engineering (ST Engg), announced on 23 February 2012, that it had recorded steady growth of 7.4 percent in earnings to $527.5 million as compared to FY10’s $491 million. This was despite flat growth in sales. In 4Q11, ST Engg’s revenue was $0.15 billion higher than that achieved in 3Q11, rising by 11 percent. With the exception of the Marine sector, all other sectors grew sequentially over 3Q11. The Marine sector was dragged down by the reversal of shipbuilding revenue following the Ropax contract termination. It registered $91 million in revenue, 64.3 percent lower than in 3Q11. ST Engg is proposing a final dividend of $0.125 per share, bringing total dividend for FY11 to $0.155 per share.
Significance: It is expected that the firm will experience higher revenue and pre-tax profit for 2012 in view of its record order book of $12.3 billion. One third of the order backlog, or $3.9 billion will be set for delivery in 2012.