(Source: Business World | Nov. 13, 2015)
SSI Group, Inc.’s net profit fell in the third quarter, dragged down by the losses from new retail ventures, even as nine-month earnings got a lift from strong sales.
The Tantoco-owned specialty retailer posted an annual 38% decline in net profit to P115.25 million in the three-month period, according to a regulatory filing.
Weighing on earnings were foreign exchange losses, higher interest expenses and widening of the losses arising from the group’s share in joint ventures.
“Despite a more competitive environment in the third quarter, the group was able to post strong sales growth during the period,” SSI President Anthony T. Huang was quoted in the disclosure as saying.
Mr. Huang was referring to the 15% uptick in sales to P3.87 billion in the three-month period, which pushed the nine-month tally by 17% to P11.8 billion.
“Amidst an evolving landscape, we are focused on continuing to grow our market share and on optimizing the efficiency of our store network and our brand portfolio,” he said.
For the nine-month period, net profit rose 4% year-on-year to P700.98 million. Excluding losses from joint ventures, earnings grew at a faster pace of 9% to P865 million.
Mr. Huang said in June the company was looking at growing profits and sales by 19-22% this year.
At end-September, SSI was operating 781 specialty stores covering more than 143,000 square meters, a 22% year-on-year increase in the company’s retail footprint. It had 115 brands in its portfolio.
Likewise, SSI was operating 113 FamilyMart stores, 31 of which were franchised, through its joint venture with Ayala Land, Inc. and FamilyMart Co. Ltd. The retailer also runs two Wellworth department stores as part of another partnership with Ayala Land.
Shares in SSI lost 34 centavos or 8% to end at P3.91 each on Friday. — Krista Angela M. Montealegre