On May 5, the London-based asset manager sold just over 2.53 million shares on the open market for $3.97 million, or an average of $1.57 per share. With that, Mondrian is left with around 72.93 million shares, or 4.85%, down from 5.02% previously although it remains the second-largest shareholder.

Back in May 2018, Mondrian acquired a 6.58% stake, or 99 million shares, from the controlling Lim family for $99.99 million, which works out to $1.01 each.

Mondrian has been gradually paring its stake. As indicated in a regulatory filing dated Oct 30, Mondrian sold 885,100 Sheng Siong shares on the open market, collecting proceeds of just over $1.45 million. This works out to an average selling price of $1.63 per share. The Lim family, with nearly 50% stake, remains the controlling and largest shareholders of the company.

Sheng Siong shares enjoyed a good run last year as people stock up on essential items amid the Covid-19 pandemic, sending its earnings up 83.7% for the whole of FY2020 ended December 2020. However, since the recent peak of $1.85 reached last August, Sheng Siong shares have eased off to close at $1.53 on May 10, barely unchanged year to date.

For 1QFY2021, the company reported earnings of $30.9 million, up 6.5%. Revenue in the same period was up 2.7% to $337.5 million.

 

In its April 26 earnings commentary, Sheng Siong notes that with the containment of Covid-19 infections as well as the progressive rollout of vaccinations in Singapore, it expects &ldquo elevated demand&rdquo caused by the pandemic to taper off. &ldquo Consequently, we are expecting lower revenue in 2QFY2021 compared to 2QFY2020 as elevated demand peaked, we achieved record revenue of $418.7 million. Going forward, there will also be comparatively lesser Covid-19 grants and rebates as the pandemic situation improves,&rdquo the company adds.

&ldquo The group remains focused on its goal to expand its retail network and improve same-store sales in Singapore and China. We will work on driving cost efficiencies, enhance gross margins by working towards a sales mix with a higher proportion of fresh produce and deriving more efficiency gains from the supply chain,&rdquo says CEO Lim Hock Chee in his earnings commentary.

SUPERMARKET operator Sheng Siong will continue to pay out about 70 per cent of its net profit as dividends, unless there is a need for cash due to operational reasons or major capital expenditures, chief executive officer Lim Hock Chee said on Friday.

 

The company had abided by this practice since FY 2017, when the payout ratio was reduced from 90 per cent to 70 per cent as the board felt it needed a " war chest" on hand and decided to conserve cash, Mr Lim said.

 

He was responding to questions from shareholders ahead of its annual general meeting, which will be held live via a non-interactive webcast on Monday (April 26).

 

Buoyed by increased demand amid the Covid-19 pandemic, Sheng Siong in February posted a 84.9 per cent jump in net profit to S$32.1 million for the fourth quarter ended December 31.

 

The board is proposing a final dividend of three Singapore cents per share, to be paid on May 20, which will bring the total dividend for FY2020 to 6.5 Singapore cents per share.

 

Mr Lim said in a bourse filing after trading hours on Friday that the company expects its net profit margin to come down to pre-pandemic levels when the " elevated demand" tapers.

 

Net profit margin was close to 8 per cent from 2016 to 2019, he said.

 

" The gradual relaxation of restrictions will reduce elevated demand, which will not benefit the supermarket industry. However, everyone is now trying to figure out how our way of life will change post Covid-19. With changes come opportunities, and we will leverage on these for growth," he said.

 

He noted that operating profits have grown at a compound annual growth rate of 19 per cent from 2013 to 2020.

 

" We grew because we were able to adapt to the rigors of competition in a changing market environment. Post pandemic, the market environment will change which will impact demand," he said.

 

" Whether it is pandemic or post pandemic, our people, leadership, corporate culture and innovativeness will continue to be drivers of our competitiveness, relevance and growth."

 

Asked about Sheng Siong' s business expansion plans, Mr Lim said the company is " actively seeking" new technologies and processes to improve operational efficiencies and productivity, such as leveraging on technology to improve last-mile delivery.