#China #Guangzhou #financial results #MINISO Group #retail performance

MINISO Group Reports Strong Financial Growth

MINISO Group Holding Limited, a prominent global retailer offering trendy lifestyle products, recently announced its unaudited financial results for the September quarter and the first nine months of 2024. The company has demonstrated a remarkable performance and continues to expand its market presence.

Financial Performance Highlights

For the nine months that ended on September 30, 2024, MINISO showcased impressive revenue growth. The total revenue reached RMB 12.28 billion (approximately $1.75 billion), marking a significant year-over-year increase of 22.8%. This growth can principally be attributed to an 18.5% rise in the average store count and a modest increase in same-store sales.

Moreover, the company reported a gross profit of RMB 5.42 billion (about $772.3 million), which reflects a 34.1% increase compared to the same period in 2023, resulting in a gross margin of 44.1%—an improvement from 40.4% in the previous year. The operating profit also exhibited growth, rising 14.3% to RMB 2.35 billion ($334.5 million).

Profit for the period saw an ascent of 11.6% to RMB 1.83 billion ($260.2 million). Adjusted net profit followed this trend with a 13.7% increase, reaching RMB 1.93 billion ($274.8 million), despite facing foreign exchange losses this year.

Revenue Breakdown

The revenue reported for the third quarter reached RMB 4.52 billion ($644.5 million), a year-over-year rise of 19.3%. Specifically, revenue from the mainland China market showed an increase of 8.7%, largely propelled by MINISO's brand and the newer TOP TOY brand, which saw a remarkable expansion of 50.4%.

In overseas markets, revenue surged 39.8%, reflecting the successful implementation of retail strategies across various international locations. The contribution of overseas revenue to the company's total revenue has grown from 32.1% in the last year to 37% this year, highlighting MINISO's effective globalization efforts.

Operational Expansion

As of September 30, 2024, MINISO boasted a total of 7,420 stores globally, with a net increase of 859 stores within the first nine months of the year. The number of MINISO stores increased to 7,186, with significant growth in both domestic and international markets.

The company reported having 4,250 MINISO stores in mainland China, an increase from last year, while overseas markets added 449 new stores, showcasing strong operational momentum. Additionally, TOP TOY's store count reached 234, demonstrating robust brand performance.

Strategic Decisions and Future Outlook

Mr. Guofu Ye, the chairman of MINISO, noted that the company is making steady progress toward its annual target of adding 900 to 1,100 new stores. This ambitious plan underscores MINISO's commitment to expanding globally while investing in product innovation and enhancing consumer experiences.

Apart from routine operations, MINISO has entered into an agreement to acquire a stake in Yonghui Superstores, which aligns with their vision of pursuing quality retailing trends and consumer-driven consumption. The leadership emphasized that, despite any short-term macroeconomic challenges, the focus remains on long-term strategies, particularly aimed at innovation and leveraging their global supply chain.

Conclusion

In summary, MINISO Group's financial results reflect a strongly growing retail presence, significantly improved margins, and positive outlook driven by strategic global expansions. With plans for continued growth and shareholder returns through dividends and repurchases, MINISO is poised for ongoing success in the competitive retail landscape. The company's ability to adapt and thrive in varied markets signals a prosperous future as it advances into 2025.