SSI 2025 profit down 47.5% on sluggish demand for luxury brands

MANILA, Philippines — Tantoco-led retailer SSI Group Inc. saw its net income fall 47.5 percent to P1.32 billion in 2025, amid weaker margins and higher operating costs.

In its annual report, SSI Group — distributor of such high-end brands as Hermes, Bottega Veneta, Cartier, Givenchy and Burberry —  said that for the fourth quarter alone, net income had declined 45.7 percent to P677 million from P1.2 billion a year earlier.

Gross profit rose slightly to P13.9 billion, but margin slipped to 45.1 percent due to increased discounting during weak consumer demand.

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Operating expenses climbed 14 percent to P12 billion, driven by higher depreciation, personnel and rental costs tied to store expansion.

As a result, operating income dropped to P1.9 billion from P3.2 billion, while earnings before interest, taxes, depreciation and amortization declined 24.8 percent to P4 billion.

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Despite earnings pressure, total assets grew to P29.5 billion, supported by higher inventory and receivables.

The group’s financial position remained stable, although rising costs and soft demand weighed on profitability during the year. /dda