Asian cosmetics group Sa Sa has posted a profit of HK$826 million (US$106.5 million) for the year to March, up 19.7 per cent.
The group’s turnover rose by the same rate to HK$7.7 billion, compared to HK$6.4 billion the previous year. The group said it benefited from the strong performance of its Hong Kong and Macau core markets.
While the group described the year’s business environment as challenging due to the slowdown in the mainland and other Asian countries, the growth of medicines and cosmetics remained solid as mainland tourist arrivals to Hong Kong continued to increase.
Sa Sa saw a retail sales increase of 20.8 per cent in Hong Kong and Macau, which remained the largest contributor to the group’s turnover and profits.
Meanwhile, turnover in mainland China increased by 22.6 per cent, driven by new store openings and continuous improvements in store and frontline staff productivity.
Turnover in Singapore, Malaysia and Taiwan grew 5.5 per cent, 24 per cent and 12.7 per cent, respectively.
Sa Sa expects the coming fiscal year to be challenging as there are still no signs of any strong recovery in the Chinese economy, however, it says the cosmetics business remains resilient, particularly in Hong Kong.
Sa Sa says it will increase its retail space in tourist locations in Hong Kong. In mainland China, it plans to boost penetration in lower-tier cities while continue closing underperforming stores and counters.
“Although we have seen moderation in the growth of the mainland China economy, as well as in our other markets, we are confident that our proven strategies, our commitment to forward planning and our inherent flexibility will enable Sa Sa to continue to deliver sustained growth for the coming fiscal year and beyond,” said chairman and CEO Simon Kwok.
Sa Sa operates more than 260 stores and counters in Asia that sell more than 600 brands of make-up, skin care, fragrance and hair care products including its own brands and international brands.
