MANILA, Philippines — A subsidiary of Tantonco-led SSI Group, Inc. (SSI) has formed a joint venture company (JVco) with Italian luxury fashion brand Prada aimed at accelerating the growth of the brand in the Philippines.
In a disclosure to the Philippine Stock Exchange yesterday, SSI said the newly formed joint venture company Prada Philippines Inc. is owned 60 percent by Prada S.p.A and 40 percent by Stores Specialists Inc.
SSI said that Stores Specialists, Inc.subscribed to 16.7 million common shares of Prada Philippines at a par value of P1 per share.
“The joint venture company is expected to accelerate the growth of the Prada brand in the Philippines and enable operating efficiencies, as SSI and Prada transition from a franchisee-franchisor relationship to joint venture partners,” SSI said.
SSI said its initial investment in the joint venture company is P16.7 million while Prada’s initial investment is P25 million.
“At completion, SSI’s total investment in the joint venture company will be P152 million while Prada’s total investment in the JVco will be P228 million,” the company said.
The JVco is expected to commence operations on Jan. 1, 2024 and shall own and operate Prada stores in the Philippines.
In the first nine months of the year, SSI reported a 66.3-percent jump in its net income to P1.5 billion.
Net sales grew by 20.7 percent to P18.9 billion, driven by strong growth across all categories.
“The group continued to benefit from the quality and breadth of its brand portfolio with higher growth during the period from the FAL (footwear, accessories and luggage), others and fast fashion categories, reflecting a broader consumption recovery across all of the group’s customers, as compared to 2022, when much of the sales growth was concentrated in the premium luxury and bridge category, and higher-end casual category,” SSI said in its recent financial report.