SA SA INT'L Reported $7.44 Million Profit in FY23 with a Turnaround
- Chaileedo Press
- Jun 16, 2023
- 3 min read
SA SA INT'L, the China HK-based cosmetics retailer, released the annual results for the year ended 31 March 2023. The company’s annual turnover increased by 2.6% to HK$3,500.5 million ($447.52 million). The company turned around the business and recorded a profit for the year amounting to HK$58.2 million ($7.44 million).
SA SA INT'L, the China HK-based cosmetics retailer, has released its yearly financial results for the year ending on March 31st, 2023. The company reported a 2.6% increase in annual turnover, reaching HK$3,500.5 million ($447.52 million) in FY23.
As of March 31st, 2023, SA SA INT'L reported a 7.3% increase in offline retail sales and wholesale revenue in Hong Kong and Macau SARs, reaching HK$2,373.3 million ($303.32 million). However, offline sales in Mainland China dropped by 22.9% to HK$225.2 million ($28.78 million). On the other hand, offline sales in Southeast Asia surged by 64.9% (in original currency) to HK$300.0 million ($38.34 million). The company operated a total of 186 retail stores across all regions during the same period.
The company’s online business turnover decreased by 13.5% to HK$602.0 million ($76.94 million), mainly due to Covid-19 disruptions in Mainland China, where online sales declined by 33.4%. This was the only region that recorded a decrease in online sales. However, online sales contributed 17.2% to the Company's total turnover, a significant increase compared to the pre-pandemic period in the financial year that ended on March 31st, 2019. The total online business incurred a loss of HK$21.2 million ($2.71 million) in the Financial Year, compared to a profit of HK$6.9 million ($0.88 million) in the previous year.
During the reporting period, SA SA INT'L successfully turned its business around and achieved a profit of HK$58.2 million ($7.44 million) for the year, which is a significant improvement compared to the loss of HK$133.2 million ($17.02 million) incurred in the first half of the current year and the loss of HK$343.7 million ($43.93 million) recorded in the previous year.
Total online and offline sales in Hong Kong and Macau SARs amounted to HK$2,603.8 million ($332.78 million), accounting for 74.4% of the total Company sales for the Financial Year, which increased by 8.7% compared to the previous year. Within this, sales in Hong Kong SAR grew by 18.4%, while sales in Macau SAR decreased by 13.2%. While Offline Sales in Hong Kong and Macau SARs increased by 7.3% to HK$2,373.3 million ($303.32 million) for the Financial Year, while same-store sales increased by 13.5%.
After the relaxation of pandemic-related measures and the reopening of the boundary with Mainland China, offline sales in Hong Kong and Macau SARs in the fourth quarter that ended on March 31st, 2023, increased by 60.1% year-on-year and 41.1% compared to the previous quarter. The sales mix of Mainland Chinese tourists in Hong Kong and Macau SARs also recovered to 41.1% in the fourth quarter, which is an improvement from the pandemic period, but still lower than the pre-pandemic period when it was around 70%.
SA SA INT'L stated that Mainland China remains a key focus of the company's long-term strategy. With the easing of market uncertainty caused by the Covid-19 social distancing policy, the Company is now able to conduct business under normal, predictable operating conditions. The mainland China economy is recovering from the impact of Covid-19, and consumer sentiment is gradually improving. The Company is closely monitoring market conditions to align its strategy accordingly.
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