HKEX | 178
Sa Sa International FY2018/19 net profit HK$ 471M, up 7%
According to Simon Kwok, Chairman and Chief Executive Officer of Sa Sa International (178), from April to mid-June this year, the revenue was down 12% year-on-year, while same-store sales was down by 15% year-on-year. However, he stressed that the performance in April to mid-June was mainly dragged down by the performance in April, while the same-store sales in May and June only recorded a single digit drop. He said the company had lots of rooms for improvement, such as increasing the sales of health food products.
The company's gross profit margin fell from 41.7% to 40.4% last financial year, recording a decline of 1.3 percentage points, mainly due to the weak sales of exclusive agency brands. For this year's gross profit margin performance, he said that this year's gross profit margin will still be under pressure, as e-commerce competition intensifies. The company believes that maintaining passenger flow and sales is more important.
As for the plan to open stores next year, he said that there are at least 7-8 stores in Mainland China and at least 3-4 in Hong Kong and Macao. Therefore, it is believed that at least 10 new outlets will be opened in Hong Kong, Macau and the Mainland this year. Regarding the performance of renewing rents in the first quarter this year, he said that the average rents of 18 branches renewed from April to the present this year have fallen by nearly 19%, most of which are street shops.
Sa Sa International announced its full-year results for the fiscal year of 2018/19. The company's continuing operations turnover increased by 4.5% year-on-year to HK$ 8.376 billion; the profit attributable to shareholders was HK$ 471 million, up 7% year-on-year, and earnings per share was HK$ 0.154. The final dividend was HK$ 9 cents, compared with HK$ 11 cents in the same period last year.
As of the end of March this year, the total number of stores increased from 265 to 274, with a total of 118 stores in Hong Kong and Macau, and 54 stores in China. Sales of retail and wholesale in Hong Kong and Macau increased by 4.9% year-on-year to HK$ 7.792 billion, while same-store sales increased by 3%. The total number of transactions increased by 3.5%, and the average sales per transaction rose by 1.4%. The total turnover for the company’s operations in the mainland China slightly decreased by 1.9% in local currency to HK$287.8 million, while same store sales in local currency terms dipped by 1.1%.