Net profit of SSI surged 63% to P998.7B in 2014

SSI Group Inc., the country’s biggest specialty store retailer, said its net profit surged in 2014 as it sustained margins and opened more stores.

SSI said in a stock exchange filing Friday that unaudited net income last year hit P998.7 million, up 63 percent over the same period in 2013. It added that revenues during the period hit P15.2 billion, up 19 percent. For the fourth quarter alone, a traditionally strong period for retailers due to the Christmas season, SSI Group said revenues rose 26 percent to P5.2 billion.

The company, best known for caring luxury and mid-range labels like Gucci, Hermes and GAP, said gains were driven by its ‘’store expansion program, the depth of its brand portfolio and sustained gross profit margins.’’

SSI noted in its filing that it expanded its store network by a net of 126 stores, or 35,500 square meters of new retail space, increasing its retail footprint by 36 percent. Earnings before interest, taxes, depreciation and amortization for the period was P2.9 billion, up 88 percent over the same period in 2013, it said.

SSI Group president Anton Huang described 2014 as a ‘’landmark year.’’

‘’We continue to leverage on a brand portfolio that resonates with consumers, on the availability of prime retail space, and on evolving consumption patterns and consumer tastes. We expect that these factors will continue to drive our performance in 2015,’’ he said in the filing.

The company in 2014 launched a P6.5-billion initial public offering (IPO), which was well taken up by domestic and international investors.

IPO proceeds would mainly finance the company’s expansion.

SSI said in its prospectus that it had 655 stores with a gross selling space of 111,585 square meters, mostly in Metro Manila, as of end-June 2014. In its filing, SSI said it ended 2014 with 106 brands in its portfolio and was operating 723 specialty stores covering 134,000 sqm of retail space as well as 90 Family Mart convenience stores.

Apart from apparel, the company is expanding its joint-venture retail formats with Ayala Land Inc. for the Family Mart and Wellworth brands, it had said.