Amidst the wave of market attention on Chinese brands going global, Miniso has disclosed its latest performance for the first quarter of 2024.
Data shows that Miniso achieved a revenue of 3.724 billion yuan in the first quarter of 2024, a year-on-year increase of 26%; The net profit was 586 million yuan, a year-on-year increase of 24.4%; The adjusted net profit was 617 million yuan, a year-on-year increase of 27.7%. During the same period, the company's gross profit margin was 43.4%, an increase of 4.1 percentage points compared to 39.3% in 2023.
"Our total revenue reached 3.7 billion yuan, a year-on-year increase of 26%, mainly due to a 19% increase in average store numbers and a 9% increase in same store sales," said Ye Guofu, founder, chairman, and CEO of Miniso
New store sales growth superimposed with same store sales scale growth
From the perspective of the first quarter performance growth of Miniso, the combination of new store sales growth and same store sales growth is an important reason for the company's performance growth.
According to financial report disclosure data, as of the end of the first quarter, MINISO's global stores had reached 6630, with 217 new stores added this quarter, and the opening speed was nearly three times faster than the same period in previous years.
Among them, the number of stores in China increased to 4034, with a net increase of 108 stores in the first quarter, which is twice the opening speed of the same period last year. In the overseas market, Mingchuang Youpin has 2596 stores, with a net increase of 109 stores in the first quarter, and the opening speed is faster than in China.
Ye Guofu said, "The March quarter that just passed was the fastest opening quarter in our history, which laid a solid foundation for achieving our goal of net growth of 900 to 1100 stores in 2024."
Thanks to a year-on-year increase of 18.7% in the average number of stores, offline store revenue in China increased by 15.6% in the first quarter, achieving a revenue of 2.502 billion yuan, a year-on-year increase of 16.2%.
The progress of going out to sea is smooth
Overseas, due to a year-on-year increase of 19.7% in the average number of stores and a strong growth of about 21% in same store sales, the overseas revenue in the first quarter reached 1.222 billion yuan, a year-on-year increase of 52.6%. Revenue from overseas markets accounted for 32.8% of total revenue in this quarter, a significant increase from 27.1% in the same period in 2023. Especially in the company's direct stores, overseas revenue accounts for 58%, becoming an important support for the direct sales of Miniso.
Regarding MINISO's overseas business, Ye Guofu bluntly stated that the year-on-year growth of revenue in overseas markets exceeded the most optimistic expectations, mainly due to a 92% year-on-year increase in revenue in the direct market, which is also the fourth consecutive quarter of growth of the business exceeding 80%
Structurally, the United States and Asia are the two important markets for Miniso's overseas expansion, accounting for nearly 3/4 of its overseas GMV, and overall sales growth mainly relies on customer traffic growth. Among them, in the relatively strong consumer market of the United States, regional same store sales increased by 30% to 40% year-on-year in the first quarter of this year.
However, it is reported that the consumption season in the United States has more obvious characteristics, and consumption in the second half of the year, especially in winter, will account for more than half of the annual revenue. The growth in this quarter does not represent the final growth rate for the year. Currently, there are approximately 150 stores of Miniso in the United States, and it is expected to add 80-100 new stores by 2024 to achieve greater synergy and reduce regional logistics and distribution costs.
Trendy Play Becomes a New Growth Point
In addition to outstanding performance in overseas markets, the top domestic trendy gaming business's revenue grew rapidly year-on-year in this quarter.
According to financial report data, the TOP TOY achieved a revenue of 138 million yuan in the first quarter of 2024, a year-on-year increase of 55.1%; The average number of stores increased by 32.2% year-on-year, and same store sales increased by about 26% compared to the same period in 2023. As of the end of the first quarter, the scale of TOP TOY stores reached 160, with 12 new stores added this quarter.
"With the rapid growth of scale, this business is gradually releasing profit margins. TOP TOY has achieved positive profits for two consecutive quarters, and through product structure optimization, its gross profit margin has increased by 8 percentage points year-on-year." In a conference call, TOP TOY's business revenue and profits continue to improve, which is seen by the management of MINISO as a key turning point in business development.
Ye Guofu revealed in the financial report conference call, "We have stronger confidence in the rapid expansion of TOP TOY, so our target for opening stores this year has been raised from 50 at the beginning of the year to 100. By the end of 2024, the number of TOP TOY stores is expected to expand to over 250."
According to Zhang Jingjing, Chief Financial Officer of Miniso, in a recent interview, the company plans to open nearly 400 stores in China this year and about 600 new stores overseas. It is expected that the overseas market will account for more than half of Miniso's sales, up from about 35% last year.
In addition, the management team of MINISO did not have a clear goal for opening larger offline stores in the future during the conference call, and they believe that the current model of large stores is not yet perfect.