Sheng Siong issues profit guidance for Q4, says it has computed bonuses the same way since 2007

SUPERMARKET operator Sheng Siong said that it expects its revenue and net profit for its fourth quarter to vary by less than 5 per cent from the figures recorded for the previous quarter, in a profit guidance after trading hours on Wednesday.

This comes as demand in the fourth quarter of 2020 was stable compared with the quarter before; Covid-19 restrictions were similar, except that Phase 3 started on Dec 28, 2020, it said.

Sheng Siong also clarified that there has been no change to the system and method of calculating the group's employee bonus payments, which has been in place since FY2007.

Accordingly, staff bonus payments for FY2020 were calculated by factoring in the group's financial performance, it said.

The clarification came in the wake of earlier reports that total bonuses for eligible Sheng Siong staff (inclusive of the annual wage supplement) ranged from 4.68 months for eligible part-time staff to 15.72 months for those ranked as assistant managers and above.

This was due to the company performing "tremendously well" in FY2020, as a result of elevated demand on the back of Covid-19.

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Eligible employees are entitled to 20 per cent of the group's profit before tax as variable bonus, said the memo.

For its nine months ended Sept 30, 2020, Sheng Siong's net profit jumped 83.3 per cent to S$107 million from the year before; its revenue was up 44.6 per cent to S$1.07 billion.

Sheng Siong will announce its fourth-quarter and full-year results on Feb 24.

Its shares closed at S$1.61, up 2 Singapore cents or 1.26 per cent on Wednesday.