Recently, Miniso Group released its financial report for the fourth quarter of 2023. The financial report shows that the company's total revenue reached 3.84 billion yuan in the fourth quarter of last year, a year-on-year increase of 54%, setting a new historical high in revenue for a single quarter. After adjustment, the net profit exceeded 660 million yuan for the first time, a year-on-year increase of 77%; The adjusted net profit margin was 17.2%, a year-on-year increase of 2.2 percentage points.
As of December 31, 2023, the number of global stores of Miniso has reached 6413, an increase of 973 compared to the same period last year. Ye Guofu, founder and CEO of Miniso, stated that his current goal is to open a net of 900-1100 new stores annually between 2024 and 2028, while maintaining a compound annual growth rate of no less than 20% in revenue.
Overseas direct market revenue accounts for over 50% of overseas revenue
The financial report shows that behind the rapid growth of revenue, the revenue from the Chinese market increased by 55.7%, reaching 2.35 billion yuan. This is mainly due to the 63.2% increase in offline store revenue and 39.2% increase in average sales of Miniso in China. In addition, the revenue growth rate of TOP TOY reached 90.5%, and the average revenue growth of each store also reached 59.4%.
The revenue from overseas markets increased by 51.4% to 1.49 billion yuan, corresponding to a 15.9% increase in the average number of stores and a 30.7% increase in average revenue per store for Miniso's overseas market. The revenue contribution from overseas markets accounted for 38.9% of the total revenue in the fourth quarter, slightly lower than 39.5% in the same period of 2022, but increased from 34.2% in the first quarter of 2023. In addition, the revenue from overseas direct markets increased by about 90% year-on-year, accounting for over 50% of overseas revenue for the first time.
Currently, Miniso has 3926 stores in the Chinese market and 2487 stores in overseas markets, with over 60% of stores in the Chinese market. Among them, China's stores are mainly concentrated in third tier or lower cities, with 1787 stores, and overseas stores are concentrated in Asian countries, with 1333 stores. Both domestically and internationally, the region with the most stores is also the region with the highest year-on-year growth in the number of stores. Miniso is expected to maintain a net increase of 350-450 stores in China by 2024, and a net increase of 550-650 stores in overseas markets.
From the perspective of the domestic market, city flagship stores and city image stores are important parts of Miniso's "super stores", laying a solid foundation for Miniso's performance growth and brand upgrading. Data shows that the year-on-year growth rate of offline sales GMV of Miniso's domestic business is about 66%. In the overseas market, the focus is on upgrading new stores through IP strategy, and the market performance of overseas large stores has become the main growth engine of overseas revenue.
In addition to super IPs, strategic categories are also an important driving force for innovation led by Miniso. Representative strategic categories include blind boxes, disposable travel products, plush products, and aromatherapy, enabling them to continuously meet new market demands and trends with the support of creativity, trends, and other attributes.
Accelerate the promotion of overseas supply chain layout, and set a target of 1000 stores in Europe
The overseas market has increasingly important strategic significance for Miniso in recent years. During a conference call after the financial report, Ye Guofu, Chairman of Miniso, mentioned that over the past year, through intensive investigations of overseas markets, he has gained more confidence in the supply chain advantages and IP design advantages of Miniso's base. In 2024, we will accelerate the layout of overseas supply chains, deepen cooperation with high-quality global suppliers, achieve overseas product delivery performance, and enhance the risk resistance of supply chains in overseas markets. At the same time, he also revealed that in the next five years, Miniso will be able to achieve a thousand store scale in Europe. In addition to its existing agency forms, it will also try various forms of cooperation such as directly operating flagship stores and investing in agents to support local market development.
It is worth mentioning that Miniso's gross profit and gross profit margin performed well in the quarter. The gross profit reached 1.66 billion yuan, a year-on-year increase of 66.2%, with a gross profit margin of 43.1%, compared to 40% in the same period last year. Looking at each quarter, Miniso has maintained a continuous upward trend in gross profit and gross profit margin in recent quarters.
Zhang Jingjing, Chief Financial Officer of Miniso, said, "The company's gross profit margin reached 43.1% this quarter, once again reaching a historic high, mainly due to the increased contribution of overseas markets and TOP TOY revenue. In the long run, we are confident in steadily increasing our gross profit margin by leveraging our core capabilities in IP product research and development, supply chain integration, and globalization. We will continue to optimize our expenditure structure and pursue long-term sustainable profit margin levels."
In addition, the board of directors of Miniso also announced the distribution of a special cash dividend of $0.0725 per common share, equivalent to approximately RMB 650 million, accounting for approximately 50% of the adjusted net profit for the six months ended December 31, 2023. Zhang Jingjing revealed that since going public, the company has cumulatively returned nearly RMB 2.8 billion to shareholders through dividends and share repurchases.