Retailer SSI Group reported a 383 percent jump in net income to P491 million in the first half of the year from a P173.7 million net loss in the same period of 2021 as second quarter 2022 sales, gross profit margins and net income exceed pre-COVID levels.
In a disclosure to the Philippine Stock Exchange, SSI said it generated sales of P10.03 billion in the first half of 2022, 56 percent more than the P6.42 billion in the same period last year and were 99.7 percent higher than first half 2020 sales.
Sales reached P5.6 billion during the second quarter, an increase of 91 percent year-on-year, and an increase of 13 percent, as compared to second quarter 2019.
The SSI Group performed strongly during the first half of 2022, driven by significant increases in second quarter sales, gross profit margins and net income.
The firm said its results during the second quarter of the year reflect strong consumer demand for the Group’s brands and continue to highlight the resilience of SSI’s core customer base and brand portfolio, combined with the execution of strategies meant to optimize expenses and to build new channels through which to reach the Group’s customers.
The Group’s luxury and bridge and casual wear categories continued to perform strongly, with increases of 33.2 percent and 50.0 percent, respectively, as compared to the same period last year.
The Group also saw a significant turnaround in the sales of the fast fashion and footwear, accessories, and luggage categories.
Fast fashion grew by 113.4 percent versus first half of 2021 while footwear, accessories, and luggage sales grew by 64.0 percent versus the first half of 2021. The Group’s1H2021totalsalesincreasedby56.2% as compared to 1H 2021 sales and The Group’s sales performance during the first of the year also reflects strong demand for the Group’s products given the easing of COVID 19 restrictions and cases.
Its e-commerce sites posted first half 2022 sales growth of 19 percent, accounting for 8.2 percent of total sales.
“As operating conditions began to normalize during the second quarter of 2022, the Group saw a marked turn around in sales and net income,” said SSI President Anthony T. Huang.
He added that, “Strong consumer demand during the period allowed the Group to capitalize on strategies put in place in order to ensure responsiveness to changing market conditions, and to convert improving consumer confidence and mobility into sales and profitability.”
Apart from a return to pre-COVID sales and profitability, Huang said the Group saw extremely strong cash flow generation during the first half of 2022.”
“The Group enters the second half of 2022 well equipped to deal with possible headwinds in the form of higher inflation and a weaker peso, and we continue to be confident that SSI has put in place the tools to deal with changing market conditions,” noted Huang.