Sa Sa records profit surge on tourism rebound

Cosmetics firm Sa Sa Holdings International has reported a profit growth of 34.7 percent for the year ending on March 31, driven by local consumption and more mainland tourists coming to Hong Kong and Macau.

Profit reached HKD440.1 million for the 12-month period, while the group’s turnover increased by 6.2 percent to HKD8 billion. Wholesale and retail sales in Hong Kong and Macau increased by 7.9 percent to HKD6.76 billion, with same store growth of 3.9 percent.

“The Hong Kong and Macau markets are showing clear signs of recovery,” the firm wrote in a statement. “The satisfactory economic environment, high employment rate, stable property and stock market, and bullish local consumer sentiment are all driving robust growth.”

A weak US dollar and stronger Renminbi earlier this year encouraged outbound travel and greater consumption by mainland tourists, the firm additionally noted.

“The buoyant local and regional economy together with a satisfactory employment situation benefited property and investment markets, as well as supporting the retail industry overall and boosting the Group’s sales growth,” the firm added.

Though mostly driven by a rise in local consumption and an increase in tourist arrivals to the two SAR cities, Sa Sa also introduced cost control measures such as the consolidation of logistics and warehouse operations. The consequence was a year-on-year decrease of 35 percent in terms of logistics costs, as well as an almost 50 percent cut in the lead time for importation from Hong Kong to mainland China.

In mainland China, total turnover for the Group in local currency increased by 5 percent to HKD298.7 million. In overseas markets, the Group’s turnover for the Singapore and Malaysia operations was HKD211.5 million and HKD362.5 million, up by 1.9 percent and 6.1 percent in local currency terms respectively.