Upload
others
View
8
Download
0
Embed Size (px)
Citation preview
0
Sa Sa International Holdings Limited
Annual Results FY10/11For the year ended 31 March 2011
June 2011
1
Agenda
Financial Results
Business Review
Outlook & Strategies
1
2
Financial Results(For the year ended 31 March 11)
3
Year ended 31 Mar 11
(HK$M)FY 10/11 FY 09/10
+/- %
Change
Turnover 4,901.4 4,111.3 +19.2%
Gross profit 2,211.9 1,814.9 +21.9%
Operating profit 608.3 459.3 +32.4%
EBITDA 692.7 528.1 +31.2%
Profit for the period 509.3 381.9 +33.4%
EPS – basic 18.2 cents* 13.8 cents* +31.9%
Return on equity 37.6% 32.2% +5.4%
GP margin 45.1% 44.1% +1.0%
Net profit margin 10.4% 9.3% +1.1%
Group Financial Highlights
* Adjusted for the 1:1 bonus issue
4
Year ended 31 Mar 11
(HK$)FY 10/11 FY 09/10*
+/- %
Change
Final dividend per share 2.5 cents 2.5 cents --
Final special dividend per share 7 cents 7 cents --
Total annual dividend per share
– basic
– special
14 cents
4 cents
10 cents
14 cents
4 cents
10 cents
--
--
--
Dividend payout ratio ~ 77% ~100% --
Dividends
* Adjusted for the 1:1 bonus issue
5
Year ended 31 Mar 11
(HK$M)FY 10/11 FY 09/10 +/- Change
– HK & Macau
– Mainland China
– Other markets (Singapore, Malaysia, Taiwan)
475.4
(22.5)
41.3
347.6
(18.6)
24.8
+127.8
-3.9
+16.5
494.2 353.8 +140.4
– sasa.com 15.1 28.1 - 13.0
Profit for the year 509.3 381.9 +127.4
Profit Centre Performance
— Contribution to Group
+/- %
Change
+36.8%
-21.0%
+66.5%
+39.7%
-46.3%
+33.4%
6
Year ended 31 Mar 11 FY 10/11 FY 09/10 +/- Change
(HK$M)
CAPEX 136.7 74.1 +62.6
Cash generated from
operating activities443.1 414.7 +28.4
Dividends for the year 392.4 389.6 +2.8
Cash and bank balance618.4
(as of 31 Mar 11)
646.3(as of 31 Mar 10)
-27.9
Key Financial Indicators
Group
7
Business Review
8
Group Turnover
— Geographical Analysis
Turnover
(HK$M)
% to Group
Turnover
Sales to
PRC
customers
at
Group Level
HK & Macau 3,922.6 80.0% (LY: 80.0%) 45.7%
Mainland China 145.5 3.0% (LY: 2.4%) 3.0%
Singapore 206.4 4.2% (LY: 3.9%) —
Malaysia 221.0 4.5% (LY: 4.2%) —
Taiwan 173.3 3.5% (LY: 3.6%) —
sasa.com 232.6 4.8% (LY: 5.9%) 1.9%
Total 4,901.4 100% 50.6%
Year ended 31 Mar 11
Total Turnover: HK4,901.4M (+19.2%)
9
Single-brand stores / counters"Sasa" stores
*Include 5 clearance outlets
An Overview of Retail Outlets
As of
1 Apr 10
Net +/-
(Apr 10 – Mar 11)
As of
31 Mar 11
HK & Macau 70 +8 78*
Mainland China 17 +9 26
Singapore 18 +2 20
Malaysia 30 +8 38
Taiwan 15 +4 19
Total 150 +31 181
As of
1 Apr 10
Net +/-
(Apr 10 – Mar 11)
As of
31 Mar 11
3 -1 2
18 +3 21
-- -- --
-- -- --
2 -1 1
23 +1 24
Year ended 31 Mar 11
10
Performance in Hong Kong & Macau
Year ended 31 Mar 11 1H 2H FY
YOY retail and wholesale sales growth +17.5% +20.6% +19.3%
YOY same store growth +9.3% +9.2% +9.3%
Av sales/ transaction
(HK$)
268(+10.2%)
330
(+9.3%)
301
(+9.9%)
Total no. of
transactions (M)
5.9
(+5.9%)
6.7
(+9.4%)
12.6
(+7.7%)
11
Sales Performance in Other Markets
Retail and Wholesale(in local currencies)
Year ended 31 Mar 11
1H 2H FY
Mainland China
YOY sales growth
YOY same store growth
+40.7%
-6.7%
+50.4%
+2.3%
+46.2%
-1.7%
Singapore
YOY sales growth
YOY same store growth
+16.7%
+5.2%
+19.7%
+5.2%
+18.2%
+5.2%
Malaysia
YOY sales growth
YOY same store growth
+14.9%
+5.3%
+12.8%
+4.1%
+13.8%
+4.6%
Taiwan
YOY sales growth
YOY same store growth
+8.8%
+1.2%
+12.5%
+2.7%
+10.8%
+2.0%
12
Mainland China Market
Loss of RMB 19.3M (LY: RMB 16.4M)
Performance improved at operating level (before office overheads)
Losses reflect investments in management and supporting resources
26 “Sasa stores” and 21 Suisse Programme counters as of 31 March 2011
Set up internal auditresources for each cluster
Enhanced productportfolio
Scalable IT systemsupports thousands of stores and franchises
Increasing supportfrom landlords
Series of strategic measures
Year ended 31 Mar 11
13
EasternChina
NorthernChina
Beijing
Tianjin
Qingdao
ShanghaiNingboShaoxing
―Sasa‖ stores
Suisse Programme counters
New outlets added in FY10/11
Mainland China Market
Network Expansion in FY10/11:
Added 9 “Sasa” stores
Added 3 Suisse Programme
counters
Another 8 “Sasa” stores to be opened :
Beijing (3), Shanghai (1) ,
Tianjin (1), Shenyang (2),
Wuhan (1)
1
1
23
1 111
13
Store image:new store
designStore locations
moreprominent
Store sizeNo.of brandsSKUs
No. of property business partners
No. of suppliers
Year ended 31 Mar 11
Yichang
Central China
1
14
E-commerce — sasa.comTurnover: FY: HK$232.6 million (-3.5%)
Performance in 2H affected by:
New customs duty regulation in Mainland China from
September 2010
Under-performing outsourced logistics function
Market diversification
Tap online market within Mainland China
Building a dedicated local team in the Mainland
Further develop business at Sa Sa’s Taobao official store
Partner with more local online shopping sites
Accolades received:
Top 30 Best Global Online B2C Retailers 2010 at
“Global Netrepreneur Award 2010”
Top 10 Best Cosmetics Online Shop 2010 by Ifeng.com of
Phoenix TV
Year ended 31 Mar 11
15
Brand Management
Year ended 31 Mar 11
*House brands = Own-brands + Sole-agent brands
House brands gaining recognition and popularity
• Awards received:– Suisse Programme: Boosting Solution
– Méthode Swiss: Oxygen Overnight Eyemask
– Collistar: Slimming Serum
– La Colline: Cell Recharge Cellular Re-Energizing Treatment
Broadened product categories, product concepts and market segments
• Beauty supplement: Hadatuko
• Mass brand: Color Combos
New products are well-received by market
e.g. Cyber Colors: Gemstone series
Sales growth of house-brand products: +24.5%
Sales mix of house-brand products: 42.1% (LY: 40.1%)
Restructured CMPD (buying department) with increased accountability of category teams
16
Outlook
& Strategies
17
Leveraging Core Strengths
to Tap Market Opportunities
China’s 12th Five-Year Plan
Integration of Hong Kong into Southern China
Rising Middle Class Strong RMB
Cosmetics and Skin Care Products
Top Mainland Tourists' Shopping ListStronger Local Consumer
Sentiment
• High brand equity
• Extensive retail network
• Wide range of products covering
broad price spectrum
• Effective sales technique
• Personalised customer service
18
Broadening Business Horizons
Customer
Relationship
Management (CRM)
Product
Category
• New products
Promotions
Broaden customer base
18
Traffic Turnover Profit
Market
Share
No. of stores
in Asia
19
sasa.com
Diversification of markets makes up loss of sales in China
Targeted marketing initiatives increase competitivenss
Customer Relationship Management (CRM)
Collaboration with PRC local online shopping websites : 360 buy.com and abang.com
Building new multi-country online platform that offers scalability and flexibility: facilitate more localized marketing and promotion activities
19
20
Category Management & Product Development
Broaden house brands to target more customer segments
Partner with suppliers and beauty brands
Department restructured to increase accountability- more improvements to
materialise
Stocking Strategy refinement -
growth supported, stock level optimized
21
Existing cities with ―Sasa‖ stores
Strategic Development Plan for
Mainland China Market
21
Network expansion strategy
• Foremost target: to accelerate network expansion
• Forming strategic alliance with renowned
commercial property developers
• Over 8 new cities to open ―Sasa‖ stores
• Central cluster now beginning to take shape
• Now recruiting heads of new clusters
• Supporting resources for new cluster now being
assembled
Suzhou
Beijing
Tianjin
Qingdao
Shenyang
Wuhan
Yichang
CentralChina
SouthernChina
WesternChina
EasternChina
NorthernChina
Shanghai
NingboShaoxing
As of 16 Jun 2011
22
Retail Outlets in Mainland China Market
Sa Sa’s presence in the Mainland China market
Chengdu
Beijing
Shanghai
Shenyang
Shaoxing
Anshan
Suzhou
Tianjin
Yichang Ningbo
Qingdao
Wuhan
Changsha
Existing cities with ―Sasa‖ stores in FY10/11
Existing cities with Suisse Programme counters in FY10/11
New cities with ―Sasa‖ stores in FY11/12
Zhenjiang
Xiamen
Yinchuan
CentralChina
SouthernChina
WesternChina
EasternChina
NorthernChina
2222
Nanjing
Hangzhou
9 Provinces and 3 Municipalities
Stores Opened in 1Q of
FY11/12
Stores to be Opened in
2Q to 4Q of FY11/12
Northern China
Beijing (+2)
Tianjin (+1)
Shenyang* (+1)
Northern China
Beijing (+1)
Shenyang* (+1)
Eastern China
Shanghai (+1)
Zhenjiang* (+1)
Xiamen* (+1)
Central China
Wuhan (+2)
Western China
Yinchuan* (+1)
*4 new cities: Shenyang, Zhenjiang, Xiamen, Yinchuan
As of 16 Jun 2011
23
Strategic Development Plan
for Mainland China Market (cont’d)
Key targets in Mainland China
Target to have
by end of March
>100 stores
23
= 5 engines of growth(independent operation team for each cluster)
5 clusters
2013
Add 40-50 stores to
> 70 stores, covering > 15 cities
by end of March 2012
24
Improve product offerings
Secure more owned labels products
Launch house brand products that are
“Made For China”
Adjust product offerings to cater for
local preferences
Increase local supplies
Stock more popular international
brands
Develop closer cooperation with
suppliers and beauty brands
Strategic Development Plan for
Mainland China Market (cont’d)
25
Strategic Development Plan for
Mainland China Market (cont’d)
Increase store sales productivity
Improve inventory supply and logistic
management
Strengthen selling, service and
supervisory skills of frontline staff
Improve incentive scheme of sales staff
26
Strategic Development Plan for
Mainland China Market (cont’d)
Invest in and build human resources to facilitate rapid
expansion
• Strengthen management structure
• Build dedicated teams for key functions
• Operational management
• CMPD (purchasing)
• Marketing
• Training
• Training function – broaden scope of training
27
No. of Retail Outlets
As of 31 Mar 10
As of
31 Mar 11
As of 16 Jun 11
By Mar 12
HK & Macau 70 78 81 >92
Mainland China 17 26 30 >70
Singapore 18 20 21 >24
Malaysia 30 38 39 >46
Taiwan 15 19 21 >23
Total 150 181 192 >255
As of 31 Mar 10
As of
31 Mar 11
As of 16 Jun 11
By Mar 12
3 2 2 2
18 21 19 30
-- -- -- --
-- -- -- --
2 1 1 1
23 24 22 33
Single-brand Stores/ Counters“Sasa” Stores
Network Expansion Plan in Asia
28
Thank you!