SSI Group trims income to P133 M

MANILA, Philippines — Specialty store retailer SSI Group Inc. reported a 1.5 percent decline in its net income in the first quarter of the year as the weaker peso impacted on its gross profit margins.

In a disclosure to the Philippine Stock Exchange, SSI said its net income for the first three months of the year amounted to P132.9 million, from P134.5 million in the same period a year ago.

Gross profit amounted to P1.9 billion in the first three months, a year-on-year decrease of six percent, while gross profit margins registered at 42.1 percent as compared to 48.3 percent during the same period last year.

“The decrease in gross profit margins reflects among others, the continuing impact of the weaker peso as well as efforts to reduce inventory levels during the period,” SSI Group said.

SSI, however, reported a 7.8 percent rise in net sales during the quarter to P4.6 billion.

This was driven by same-store sales growth during the period.

“SSI experienced robust growth in net sales during the first quarter, driven by strong consumer demand. This is despite the fact that the group continues to operate within a highly competitive environment and that the group’s total selling space declined by 7.4 percent,” the company said.

As of the end of the first quarter, the company’s store network consisted of 626 stores covering 126,575 square meters, a 7.4 percent decline from the previous year.