Profits for the Hong Kong based group rose 35.4%
Turnover for Hong Kong based cosmetics retailing group Sa Sa International Holdings, rose 30.7% to HK$6.4bn, compared to the previous fiscal year, the company reported in its annual results for the year ending 31 March 2012.
Profit for the year increased 35.4% to HK$689.7m while gross profit margin grew from 45.1% to 45.2%. Net profit margin for the year ending 31 March 2012 was 10.8%, up on 2011’s 10.4%.
Growth in Sa Sa’s retail and wholesale business was led by mainland China where turnover increased by 99.8% (90.5% in local currency) to HK$290.7m, driven by rapid expansion. As of 31 March 2012, there were 48 ‘Sasa’ stores and 20 Suisse Programme counters in 26 cities across 11 provinces in mainland China.
Turnover in Hong Kong and Macau increased by 29.8% year on year to HK$3.9bn and same store sales rose 22.2%. Growth was mainly driven by a 24% increase in tourists from mainland China to the region. As at 31 March 2012, the Sa Sa International Holdings had 87 ‘Sasa’ stores, one Suisse Programme specialty store and one La Colline specialty store in Hong Kong and Macau.
In other regions, turnover for the Singapore and Malaysia markets grew by 16.7% to HK$498.7m, while turnover in the Taiwan market rose by 30.3% (25.4% in local currency) to HK$225.8m.
In addition, turnover for sasa.com grew by 27.8% to HK$297.2m.
Sales of its own branded, sole agent and exclusively distributed products increased by 29.9%, remaining at approximately 42% of the company’s total retail sales.
The company said it expects the next fiscal year to be challenging and that current market conditions will compromise its growth rate, however it remains “cautiously optimistic about the future”.
Chairman and ceo Dr Simon Kwok said: “The Group has long been able to maintain consistent growth through both positive and more challenging economic times.”
He added: “We are confident that we will continue to drive sustainable growth across the regions in Asia where we have an established presence.”