Prime Minister Lawrence Wong delivered his Budget 2025 speech on 18 February and also announced a slew of goodies to celebrate Singapore’s 60th anniversary (SG60).
In short, everyone will receive something to celebrate the nation’s 60th year of independence.
The handouts also help to alleviate the burden of high inflation which has plagued households over the past three years.
The government will dish out SG60 vouchers that can be claimed in the same way as CDC vouchers – these can be spent at eligible hawker stalls, coffee shops, and supermarkets.
Here are four Singapore businesses that stand to benefit from these SG60 vouchers.
Sheng Siong operates one of the largest supermarket chains in Singapore and has 74 outlets spread across the island.
The group sells a wide assortment of products which includes live and chilled produce along with general merchandise such as toiletries and essential household items.
The SG60 vouchers are eligible for use at Sheng Siong’s stores and will help to boost the retailer’s revenue this year.
For the first nine months of 2024 (9M 2024), Sheng Siong reported a 4% year-on-year increase in revenue to S$1.1 billion.
Gross profit improved by 6% year on year to S$328.8 million, with gross margin increasing from 29.9% the year before to 30.5%.
Net profit came in at S$109.1 million, up 8.7% year on year.
The supermarket operator also churned out higher free cash flow of S$141.3 million for 9M 2024, up 12.9% year on year.
The group opened four new stores in 9M 2024 and aims to open at least three new stores per year.
HDB released 17 shops for tender in 9M 2024 of which Sheng Siong was awarded four.
Four are still pending results and could be added to Sheng Siong’s store count in 2025.
Meanwhile, Sheng Siong’s China subsidiary remained profitable for 9M 2024 and opened a new store in June 2024.
DFI Retail Group is a pan-Asian retailer with more than 11,000 outlets across 13 countries and territories.
Some of the brands under the group’s umbrella include Cold Storage, Giant, 7-Eleven, and Guardian Health and Beauty.
Like Sheng Siong, DFI should also benefit from the usage of SG60 supermarket vouchers within its Cold Storage, Giant, and CS Fresh brands.
The retailer provided a mixed business update for the third quarter of 2024 (3Q 2024).
Hong Kong saw overall retail sales falling by around 10% year on year because of outbound travel and weak consumer sentiment.
However, the group reported an underlying profit growth of 4% year on year for 3Q 2024.
Outbound travel is expected to normalise in 1Q 2025 and help retail sales in Hong Kong.
For Singapore, an improved product mix along with effective cost control led to divisional profit climbing over 30% year on year.
Over at Guardian, improved gross margins and better cost control led to profit growth of over 30% for the quarter.
Jumbo is a food and beverage company renowned for its chilli crab.
The group also operates a diverse portfolio of brands such as Jumbo Seafood, Ng Ah Sio Bah Kut Teh, and Kok Kee Wanton Noodles.
With the feel-good effect from Budget 2025 spilling over, people may start spending more on Jumbo’s various brands, thereby providing an uplift for the business.
The group reported a mixed set of results for its fiscal 2024 (FY2024) ending 30 September 2024.
Revenue rose 6.5% year on year to S$190.4 million while gross profit improved by 6.8% year on year to S$125 million.
However, net profit declined by almost 16% year on year to S$11.9 million because of higher staff costs and rental expenses.
Despite the lower profit, Jumbo Group still generated a positive free cash flow of S$32 million for FY2024.
A final dividend of S$0.005 was paid out, half of the S$0.01 paid out in FY2023.
Jumbo intends to expand into new markets across Southeast Asia and extend its geographical reach.
The group will also invest in infrastructure and IT to improve operating efficiency and is optimistic about its performance for FY2025.
Kimly operates a network of 86 food outlets, 176 food stalls, and several restaurants and food kiosks under the Tonkichi and Tenderfresh brands.
The group also operates a central kitchen that supplies sauces, marinades, and semi-finished products.
The use of SG60 vouchers will be allowed at its various food stalls and help to boost its overall sales.
For FY2024, revenue inched up 1.8% year on year to S$319.4 million while gross profit edged up 1.9% year on year to S$90.6 million.
Net profit, however, tumbled 6.8% year on year to S$31.7 million.
The business churned out a positive free cash flow of S$82 million for FY2024.
A final dividend of S$0.01 was declared and paid, lower than the previous year’s dividend of S$0.0112.
Management intends to expand its food outlet network in Singapore for FY2025 while also growing it Halal business to cater to the rising demand for Halal-certified products.
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