Hong Kong-listed beauty retailer Sa Sa International has tipped a substantial increase in first-half profit as sales in core markets improved.

Based on its preliminary review of unaudited management accounts, the group expects to record attributable profit of more than HK$150 million (US$19.1 million) for the six months ending September 30 – three times the HK$50.2 million surplus in the year-ago period.

Management attributed the uplift to a significant increase in same-store sales in dollar terms, total transactions, average sales per transaction, and number of items per transaction in Hong Kong and Macao. The group’s B2C online sales and profitability also grew rapidly. 

Sa Sa previously reported a 29 per cent increase in offline sales in the first quarter, driven by 31 per cent growth in Hong Kong and Macao and a 15 per cent improvement in Southeast Asia. Online sales fell by a modest 2.9 per cent.

In the last fiscal year, the group lifted its profit by 160.5 per cent to HK$200.5 million, with sales up 14.2 per cent.

Management attributed the achievement to improved regional operational efficiency after the group closed its offline operations in Mainland China to focus on online sales and operations in its key markets.