SSI Group Inc., the country’s largest specialty retailer controlled by the Tantoco family, said Wednesday net income soared 383 percent in the first half to P491 million from a year ago, on the back of a strong rebound in sales.
SSI said in a disclosure to the stock exchange revenues in the first half climbed 56 percent to P10.1 billion. Net income in the second quarter jumped 671 percent to P424 million, as revenues surged 91 percent to P5.6 billion.
The company said second-quarter net income, sales and gross profit margins exceeded the pre-pandemic levels in 2019.
SSI said the positive second-quarter results reflected strong consumer demand for the group’s brands and continued resilience of core customer base and brand portfolio.
SSI president Anthony Huang said the group saw a significant turnaround in sales and net income as operating conditions began to normalize in the second quarter.
“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,” Huang said.
“Apart from a return to pre-COVID sales and profitability, the group saw extremely strong cash flow generation during the first half of 2022,” Huang said.
Sales from e-commerce platform increased 19 percent in the second quarter and accounted for 8.2 percent of total sales.
Huang said the company was well equipped to deal with possible headwinds in the form of higher inflation and a weaker peso in the second half of the year.
“We continue to be confident that SSI has put in place the tools to deal with changing market conditions,” Huang said.
SSI entered signed a P350-million joint venture with G Distribution B.V. (Gucci) in May to accelerate the growth of the Gucci brand in the Philippines.
Share price of SSI rose 3.3 percent Wednesday to P1.56.