Sasa International’s annual profit surges 276 percent
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Sasa International‘s annual attributable profit surged 275.8 percent to HK$218.9 million (US$28 million), as mainland Chinese tourists returned as the borders between Hong Kong, Macau, and Mainland China reopened.
During the year, turnover rose 24.8 percent to HK$4.37 billion as sales in Hong Kong and Macau, its largest market, soared 31.4 percent to $3.41 billion.
Mainland China sales grew 9.7 percent to $581.6 million, but Southeast Asia sales fell 1.7 percent to $365.8 million.
Sales in other markets swelled 126.1 percent to $10.4 million.
Moving forward, the beauty retailer is looking to introduce exclusive brands via livestream platforms in Mainland China to improve the company’s gross margin profile. It is also planning to expand in Hong Kong and is looking at high-traffic malls in Malaysia and Singapore.
The company maintains a cautious outlook for China amid continued geopolitical tensions and said it has to consolidate its position in the region before making further moves.
However, in the early weeks of the new financial year—from April 1 to June 16—the company’s turnover declined 9.5 percent year over year to $812.5 million.
Questions & Answers
Q.What specifically caused Sasa International’s significant profit increase this year?
What specifically caused Sasa International’s significant profit increase this year?
The substantial profit surge was primarily due to the return of mainland Chinese tourists following the reopening of borders between Hong Kong, Macau, and Mainland China, boosting sales in the region.
Q.How did Sasa International's sales perform across its different geographical markets?
How did Sasa International's sales perform across its different geographical markets?
Sales in Hong Kong and Macau rose 31.4 percent to $3.41 billion, while Mainland China sales increased 9.7 percent to $581.6 million. Southeast Asia sales fell 1.7 percent to $365.8 million.
Q.What are Sasa International's strategic plans for future growth?
What are Sasa International's strategic plans for future growth?
The retailer plans to introduce exclusive brands via livestream platforms in Mainland China and expand in Hong Kong. It is also considering high-traffic malls in Malaysia and Singapore for new locations.
Q.What is the company's performance like in the early part of the new financial year?
What is the company's performance like in the early part of the new financial year?
Turnover declined 9.5 percent year over year to $812.5 million in the period from April 1 to June 16. This suggests a challenging start to the new financial year.
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