By James A.Loyola
SSI Group, Inc., the country’s largest specialty store retailer, reported a 42 percent jump in net income to ₱521.3 million in the first nine months of the year on the back of healthy topline growth and higher margins.
In a disclosure to the Philippine Stock Exchange, the firm said nine month core recurring income, or income excluding one time write offs related to store rationalizations, increased 30 percent y-o-y to ₱566.1 million.
“During the third quarter, and through the first nine months of the year, the Group has benefited from a focus on strong execution, cost rationalization and the generation of operating efficiencies,” said SSI Group President Anthony T. Huang.
He noted that, “this focus has reinforced the Group’s ability to capture growing consumer spending within a highly competitive and evolving industry.”
SSI posted sales of ₱14.9 billion during the first nine months of 2019, an increase of 7.7 percent. The Group’s sales growth continues to be driven by healthy consumer demand, with same store sales growth of 6.8 percent.
Revenue growth was achieved against a 3 percent decline in the Group’s total floor area, as the Group continues with its strategy to strengthen its store network and focus store openings on developed brands in developed locations.
The Group also generated operating income of ₱926.5 million during the first nine months of 2019, with operating margin increasing by 90 basis points to 6.2 percent, as against the same period last year.
The SSI Group maintains a portfolio of 92 brands, which includes many of the world’s most recognizable brands, and a store network that is located in prime retail locations nationwide.
Apart from its extensive portfolio of fashion and personal care brands, the Group also operates TWG, SaladStop! and Shake Shack. The Group will be opening its second Shake Shack restaurant at SM Megamall on December 6.