MINISO Group Announces September Quarter 2022 Financial Results
MINISO Group (MNSO) reported its Q1 fiscal 2023 results with revenues of RMB2,772.4 million (US$389.7 million), a 4.5% year-over-year increase. Gross profit surged 35.7% to RMB988.6 million (US$139.0 million), with a gross margin of 35.7%. Operating profit rose by 138.6% to RMB509.5 million (US$71.6 million). Profit for the period reached RMB404.1 million (US$56.8 million), marking a 161.5% increase. The number of stores grew to 5,296, bolstered by robust overseas performance, despite pandemic impacts in China. Adjusted net margin reached 15.1%.
- Revenue up 4.5% year-over-year to RMB2,772.4 million
- Gross profit increased 35.7% to RMB988.6 million
- Operating profit rose 138.6% to RMB509.5 million
- Adjusted net profit increased 126.6% to RMB417.4 million
- Gross margin hit a record 35.7%
- Revenue from China decreased by 8.8% year-over-year to RMB1,852.3 million
- COVID-19 continued to impact operations, with some stores unable to operate
GUANGZHOU, China, Nov. 13, 2022 /PRNewswire/ -- MINISO Group Holding Limited (NYSE: MNSO; HKEX: 9896) ("MINISO", "MINISO Group" or the "Company"), a global value retailer offering a variety of design-led lifestyle products, today announced its unaudited financial results for the first quarter of fiscal year 2023 ended September 30, 2022.
Financial Highlights for the First Quarter of Fiscal Year 2023 ended September 30, 2022
- Revenue was RMB2,772.4 million (US
$389.7 million ), representing an increase of4.5% year over year and19.6% quarter over quarter. - Gross profit was RMB988.6 million (US
$139.0 million ), representing an increase of35.7% year over year and28.1% quarter over quarter. - Gross margin was
35.7% , compared to27.4% in the same period of 2021 and33.3% in the previous quarter. - Operating profit was RMB509.5 million (US
$71.6 million ), representing an increase of138.6% year over year and87.3% quarter over quarter. - Profit for the period was RMB404.1 million (US
$56.8 million ), representing an increase of161.5% year over year and93.9% quarter over quarter. - Adjusted net profit(1) was RMB417.4 million (US
$58.7 million ), representing an increase of126.6% year over year and87.3% quarter over quarter. - Adjusted net margin(1)was
15.1% , compared to6.9% in the same period of 2021 and9.6% in the previous quarter.
Notes: |
(1) See the sections titled "Non-IFRS Financial Measures" and "Reconciliation of Non-IFRS Financial Measures" in this press release for more information. |
Operational Highlights for the First Quarter of Fiscal Year 2023 ended September 30, 2022
- Number of MINISO stores was 5,296 as of September 30, 2022, increasing by 425 stores year over year and 97 stores quarter over quarter, respectively.
- Number of MINISO stores in China was 3,269 as of September 30, 2022, increasing by 234 stores year over year and 43 stores quarter over quarter, respectively.
- Number of MINISO stores in overseas markets was 2,027 as of September 30, 2022, increasing by 191 stores year over year and 54 stores quarter over quarter, respectively.
- Number of TOP TOY stores was 109 as of September 30, 2022, increasing by 37 stores year over year and 12 stores quarter over quarter, respectively.
The following table provides a breakdown of the number of MINISO and TOP TOY stores as well as their year-over-year and quarter-over-quarter changes as of the relevant dates:
As of | |||||
September 30, 2021 | June 30, | September 30, 2022 | YoY | QoQ | |
Number of MINISO stores(2) | 4,871 | 5,199 | 5,296 | 425 | 97 |
China | 3,035 | 3,226 | 3,269 | 234 | 43 |
—Directly operated stores | 4 | 14 | 19 | 15 | 5 |
—Third-party stores | 3,031 | 3,212 | 3,250 | 219 | 38 |
Overseas | 1,836 | 1,973 | 2,027 | 191 | 54 |
—Directly operated stores | 128 | 133 | 131 | 3 | (2) |
—Third-party stores | 1,708 | 1,840 | 1,896 | 188 | 56 |
Number of TOP TOY stores(3) | 72 | 97 | 109 | 37 | 12 |
—Directly operated stores | 6 | 7 | 8 | 2 | 1 |
—Third-party stores | 66 | 90 | 101 | 35 | 11 |
Notes: |
(2) "MINISO stores" represent any of the offline stores operated under the "MINISO" brand name, including those directly operated by the Company, and those operated by third parties under the MINISO Retail Partner model and the distributor model. |
(3) "TOP TOY stores" represent any of the offline stores operated under the "TOP TOY" brand name, including those directly operated by the Company, and those operated by third parties under the MINISO Retail Partner model. |
Mr. Guofu Ye, Founder, Chairman, and Chief Executive Officer of MINISO, commented, "We kicked off fiscal year 2023 with an encouraging set of results headlined by strong margin performance. In spite of the short-term headwinds brought on by the pandemic in China, we remained focused on our long-term strategic goals: delivering on our globalization strategy, bolstering the strength of our product offerings and optimizing our store network. These efforts are yielding positive results, and we continued to see our overseas operations move further along the path of recovery. I am especially pleased to report that our margin profile continued to beat expectations, with adjusted net profit increasing by
"On November 11, China's National Health Commission released a new set of refined pandemic prevention and control policies which are more scientific and more precise. I believe that under the guidance of these new policies, the offline retail industry will see new opportunities for recovery and growth. We remain optimistic about our revenue and profit growth potential. Our positive outlook is based on our long-term confidence in China's economic development, our steadfast commitment to our vision for the offline retail business, and our determination to achieve a truly global reach." Mr. Ye continued.
Mr. Saiyin Zhang, Chief Financial Officer and Executive Vice President of MINISO, commented, "Gross margin for the September quarter reached
"Looking forward into the December quarter, we expect our overseas markets will continue to grow strongly. Meanwhile, our margin profile will improve on a year-on-year basis as we successfully execute our brand upgrade, see steady recovery in the overseas market, and break even on our directly-operated overseas business. Our financial strategy will remain disciplined in terms of budgeting, cost controls, and allocation of capital, as we focus on the consistent delivery of solid financial performances." Mr. Zhang concluded.
Recent Developments
Impact of COVID-19
The COVID-19 pandemic continued to impact the Company's operations and results in the quarter ended September 30, 2022, mainly in China.
Pandemic prevention and control measures remained in effect across China throughout the quarter. During the peak summer sales season of July and August, when the pandemic situation was relatively stable, our GMV recovered to about
GMV of MINISO stores in overseas markets in the September quarter increased by
Unaudited Financial Results for the First Quarter of Fiscal Year 2023 ended September 30, 2022
Revenue was RMB2,772.4 million (US
Revenue from China was RMB1,852.3 million (US
Revenue from overseas markets was RMB920.2 million (US
Cost of sales was RMB1,783.9 million (US
Gross profit was RMB988.6 million (US
Gross margin was
Other income was RMB6.4 million (US
Selling and distribution expenses were RMB381.3 million (US
General and administrative expenses were RMB167.6 million (US
Other net income was RMB64.0 million (US
Operating profit was RMB509.5 million (US
Profit for the period was RMB404.1 million (US
Adjusted net profit(1), which represents profit for the period excluding equity-settled share-based payment expenses, was RMB417.4 million (US
Adjusted net margin(1) was
Basic and diluted earnings per American Depositary Share ("ADS") were RMB1.32 (US
Adjusted basic and diluted net earnings per ADS(1) were both RMB1.36 (US
Notes: |
(1) See the sections titled "Non-IFRS Financial Measures" and "Reconciliation of Non-IFRS Financial Measures" in this press release for more information. |
As of September 30, 2022, the combined balance of the Company's cash, cash equivalents, restricted cash, term deposits, and other investments amounted to RMB6,007.2 million (US
Conference Call
The Company's management will hold an earnings conference call at 7:00 A.M. Eastern Time on Monday, November 14, 2022 (8:00 P.M. Beijing Time on the same day) to discuss the financial results. The conference call can be accessed via the following zoom link or by dialing the following numbers:
Access 1
Zoom link: https://dooyle.zoom.us/j/88478292986?pwd=RTVoazJkQytrWnl5R1FkOTBFdlkyUT09
Meeting Number: 884 7829 2986
Meeting Passcode: 9896
Access 2
Listeners may access the call by dialing the following numbers with the same meeting number and passcode with Access 1.
United States Toll Free: | 833 548 0276 (or +1 646 518 9805) |
Mainland China Toll Free: | 400 182 3168 (or 400 616 8835) |
Hong Kong, China (Charge Fees): | +852 5803 3730 (or +852 5803 3731) |
United Kingdom (Charge Fees): | +44 203 481 5237 (or +44 131 460 1196) |
France (Charge Fees): | +33 1 7037 9729 (or +33 1 7037 2246) |
Singapore (Charge Fees): | +65 3158 7288 (or +65 3165 1065) |
Canada (Charge Fees): | +1 438 809 7799 (or +1 204 272 7920) |
Access 3
Listeners can also access the meeting through the Company's investor relations website at http://ir.miniso.com/.
A replay will be available approximately two hours after the conclusion of the live event at the Company's investor relations website at http://ir.miniso.com/.
About MINISO Group
MINISO Group is a global value retailer offering a variety of design-led lifestyle products. The Company serves consumers primarily through its large network of MINISO stores, and promotes a relaxing, treasure-hunting and engaging shopping experience full of delightful surprises that appeals to all demographics. Aesthetically pleasing design, quality and affordability are at the core of every product in MINISO's wide product portfolio, and the Company continually and frequently rolls out products with these qualities. Since the opening of its first store in China in 2013, the Company has built its flagship brand "MINISO" as a globally recognized retail brand and established a massive store network worldwide. For more information, please visit https://ir.miniso.com/.
Exchange Rate
The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2022, which was RMB7.1135 to US
Non-IFRS Financial Measures
In evaluating the business, MINISO considers and uses adjusted net profit, adjusted net margin, adjusted basic and diluted net earnings per share and adjusted basic and diluted net earnings per ADS as supplemental measures to review and assess its operating performance. The presentation of these non-IFRS financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. MINISO defines adjusted net profit as profit for the period excluding equity-settled share-based payment expenses. MINISO calculates adjusted net margin by dividing adjusted net profit by revenue for the same period. MINISO computes adjusted basic and diluted net earnings per ADS by dividing the adjusted net profit attributable to the equity shareholders of the Company by the number of ADSs represented by the number of ordinary shares used in the basic and diluted earnings per share calculation on an IFRS basis. MINISO computes adjusted basic and diluted net earnings per share in the same way it calculates adjusted basic and diluted net earnings per ADS, except that it uses the number of ordinary shares used in the basic and diluted earnings per share calculation on an IFRS basis as the denominator instead of the number of ADSs represented by these ordinary shares.
MINISO presents these non-IFRS financial measures because they are used by the management to evaluate its operating performance and formulate business plans. These non-IFRS financial measures enable the management to assess its operating results without considering the impacts of the aforementioned non-cash and other adjustment items that MINISO does not consider to be indicative of its operating performance in the future. Accordingly, MINISO believes that the use of these non-IFRS financial measures provides useful information to investors and others in understanding and evaluating its operating results in the same manner as the management and board of directors.
These non-IFRS financial measures are not defined under IFRS and are not presented in accordance with IFRS. These non-IFRS financial measures have limitations as analytical tools. One of the key limitations of using these non-IFRS financial measures is that they do not reflect all items of income and expense that affect MINISO's operations. Further, these non-IFRS financial measures may differ from the non-IFRS information used by other companies, including peer companies, and therefore their comparability may be limited.
These non-IFRS financial measures should not be considered in isolation or construed as alternatives to profit, net profit margin, basic and diluted earnings per share and basic and diluted earnings per ADS, as applicable, or any other measures of performance or as indicators of MINISO's operating performance. Investors are encouraged to review MINISO's historical non-IFRS financial measures in light of the most directly comparable IFRS measures, as shown below. The non-IFRS financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting the usefulness of such measures when analyzing MINISO's data comparatively. MINISO encourages you to review its financial information in its entirety and not rely on a single financial measure.
For more information on the non-IFRS financial measures, please see the table captioned "Reconciliation of Non-IFRS Financial Measures" set forth at the end of this press release.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. Among other things, the quotations from management in this announcement, as well as MINISO's strategic and operational plans, contain forward-looking statements. MINISO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC") and The Stock Exchange of Hong Kong Limited (the "HKEX"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about MINISO's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: MINISO's mission, goals and strategies; future business development, financial conditions and results of operations; the expected growth of the retail market and the market of branded variety retail of lifestyle products in China and globally; expectations regarding demand for and market acceptance of MINISO's products; expectations regarding MINISO's relationships with consumers, suppliers, MINISO Retail Partners, local distributors, and other business partners; competition in the industry; proposed use of proceeds; and relevant government policies and regulations relating to MINISO's business and the industry. Further information regarding these and other risks is included in MINISO's filings with the SEC and the HKEX. All information provided in this press release and in the attachments is as of the date of this press release, and MINISO undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Investor Relations Contact:
Raine Hu
MINISO Group Holding Limited
Email: ir@miniso.com
Phone: +86 (20) 36228788 Ext.8039
Eric Yuan
Christensen Advisory
Email: miniso@christensencomms.com
Phone: +86 1380 111 0739
MINISO GROUP HOLDING LIMITED | ||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||
(Expressed in thousands) | ||||||
As at | As at | |||||
June 30, 2022 | September 30, 2022 | |||||
(Audited) | (Unaudited) | |||||
RMB'000 | RMB'000 | US$'000 | ||||
ASSETS | ||||||
Non-current assets | ||||||
Property, plant and equipment | 419,894 | 429,795 | 60,420 | |||
Right-of-use assets | 2,342,589 | 2,341,049 | 329,100 | |||
Intangible assets | 43,066 | 37,701 | 5,300 | |||
Goodwill | 19,388 | 20,010 | 2,813 | |||
Deferred tax assets | 154,333 | 154,103 | 21,663 | |||
Other receivables | 28,274 | 23,365 | 3,285 | |||
Prepayments | 201,682 | 201,407 | 28,313 | |||
3,209,226 | 3,207,430 | 450,894 | ||||
Current assets | ||||||
Other investments | 210,523 | 240,770 | 33,847 | |||
Inventories | 1,188,095 | 1,316,363 | 185,051 | |||
Trade and other receivables | 1,056,198 | 1,105,479 | 155,406 | |||
Cash and cash equivalents | 5,348,492 | 5,388,177 | 757,458 | |||
Restricted cash | 32,376 | 29,677 | 4,172 | |||
Term deposits | 236,878 | 348,549 | 48,998 | |||
8,072,562 | 8,429,015 | 1,184,932 | ||||
Total assets | 11,281,788 | 11,636,445 | 1,635,826 | |||
EQUITY | ||||||
Share capital | 92 | 95 | 13 | |||
Additional paid-in capital | 7,982,824 | 8,015,098 | 1,126,744 | |||
Other reserves | 993,307 | 1,026,854 | 144,353 | |||
Accumulated losses | (1,944,581) | (1,532,947) | (215,498) | |||
Equity attributable to equity | 7,031,642 | 7,509,100 | 1,055,612 | |||
Non-controlling interests | (4,242) | (5,829) | (819) | |||
Total equity | 7,027,400 | 7,503,271 | 1,054,793 | |||
LIABILITIES | ||||||
Non-current liabilities | ||||||
Contract liabilities | 51,658 | 51,112 | 7,185 | |||
Loans and borrowings | 6,503 | 6,712 | 944 | |||
Lease liabilities | 393,068 | 399,050 | 56,098 | |||
Deferred income | 14,488 | 13,648 | 1,919 | |||
465,717 | 470,522 | 66,146 | ||||
Current liabilities | ||||||
Loans and borrowings | 445 | 454 | 64 | |||
Trade and other payables | 3,072,991 | 2,891,372 | 406,462 | |||
Contract liabilities | 361,522 | 346,728 | 48,742 | |||
Lease liabilities | 257,997 | 266,128 | 37,412 | |||
Deferred income | 6,295 | 6,660 | 936 | |||
Current taxation | 89,421 | 151,310 | 21,271 | |||
3,788,671 | 3,662,652 | 514,887 | ||||
Total liabilities | 4,254,388 | 4,133,174 | 581,033 | |||
Total equity and liabilities | 11,281,788 | 11,636,445 | 1,635,826 |
MINISO GROUP HOLDING LIMITED | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS | |||||||
(Expressed in thousands, except for per share and per ADS data) | |||||||
Three months ended September 30, | |||||||
2021 | 2022 | ||||||
(Unaudited) | (Unaudited) | ||||||
RMB'000 | RMB'000 | US$'000 | |||||
Revenue | 2,654,115 | 2,772,444 | 389,744 | ||||
Cost of sales | (1,925,672) | (1,783,865) | (250,772) | ||||
Gross profit | 728,443 | 988,579 | 138,972 | ||||
Other income | 16,076 | 6,419 | 902 | ||||
Selling and distribution expenses | (340,809) | (381,345) | (53,609) | ||||
General and administrative expenses | (211,275) | (167,626) | (23,564) | ||||
Other net income | 33,627 | 64,035 | 9,002 | ||||
Credit loss on trade and other receivables | (12,547) | (554) | (78) | ||||
Operating profit | 213,515 | 509,508 | 71,625 | ||||
Finance income | 13,057 | 32,255 | 4,534 | ||||
Finance costs | (8,809) | (7,184) | (1,010) | ||||
Net finance income | 4,248 | 25,071 | 3,524 | ||||
Share of loss of an equity-accounted investee, | (7,891) | - | - | ||||
Profit before taxation | 209,872 | 534,579 | 75,149 | ||||
Income tax expense | (55,343) | (130,435) | (18,336) | ||||
Profit for the period | 154,529 | 404,144 | 56,813 | ||||
Attributable to: | |||||||
Equity shareholders of the Company | 152,039 | 411,634 | 57,866 | ||||
Non-controlling interests | 2,490 | (7,490) | (1,053) | ||||
Earnings per share | |||||||
-Basic | 0.13 | 0.33 | 0.05 | ||||
-Diluted | 0.12 | 0.33 | 0.05 | ||||
Earnings per ADS | |||||||
(Each ADS represents 4 ordinary shares) | |||||||
-Basic | 0.50 | 1.32 | 0.19 | ||||
-Diluted | 0.50 | 1.32 | 0.19 |
MINISO GROUP HOLDING LIMITED | |||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | |||||||||
(Expressed in thousands) | |||||||||
Three months ended September 30, | |||||||||
2021 | 2022 | ||||||||
(Unaudited) | (Unaudited) | ||||||||
RMB'000 | RMB'000 | US$'000 | |||||||
Profit for the period | 154,529 | 404,144 | 56,813 | ||||||
Items that may be reclassified | |||||||||
Exchange differences | 7,718 | 26,476 | 3,722 | ||||||
Other comprehensive | 7,718 | 26,476 | 3,722 | ||||||
Total comprehensive | 162,247 | 430,620 | 60,535 | ||||||
Attributable to: | |||||||||
Equity shareholders of | 159,700 | 432,208 | 60,758 | ||||||
Non-controlling | 2,547 | (1,588) | (223) | ||||||
MINISO GROUP HOLDING LIMITED | ||||||
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES | ||||||
(Expressed in thousands, except for per share and per ADS data) | ||||||
Three months ended September 30, | ||||||
2021 | 2022 | |||||
(Unaudited) | (Unaudited) | |||||
RMB'000 | RMB'000 | US$'000 | ||||
Reconciliation of profit for the | ||||||
Profit for the period | 154,529 | 404,144 | 56,813 | |||
Add back: | ||||||
Equity-settled share-based | 29,641 | 13,227 | 1,859 | |||
Adjusted net profit | 184,170 | 417,371 | 58,672 | |||
Attributable to: | ||||||
Equity shareholders of the | 181,680 | 424,861 | 59,725 | |||
Non-controlling interests | 2,490 | (7,490) | (1,053) | |||
Adjusted net earnings per | ||||||
-Basic | 0.15 | 0.34 | 0.05 | |||
-Diluted | 0.15 | 0.34 | 0.05 | |||
Adjusted net earnings per | ||||||
-Basic | 0.60 | 1.36 | 0.19 | |||
-Diluted | 0.60 | 1.36 | 0.19 | |||
Notes: | ||||||
(4) The adjusted basic and diluted net earnings per share are computed by dividing the adjusted net profit attributable to |
MINISO GROUP HOLDING LIMITED | ||||||||
UNAUDITED ADDITIONAL INFORMATION | ||||||||
(Expressed in millions, except for percentages) | ||||||||
Three months ended September 30, | ||||||||
2021 | 2022 | YoY | ||||||
RMB | RMB | US$ | ||||||
Revenue | ||||||||
Domestic Operations | 2,031 | 1,852 | 260 | (9 %) | ||||
-MINISO Brand | 1,867 | 1,700 | 239 | (9 %) | ||||
-TOP TOY Brand | 109 | 124 | 17 | 13 % | ||||
-Others | 55 | 28 | 4 | (49 %) | ||||
International Operations | 623 | 920 | 129 | 48 % | ||||
2,654 | 2,772 | 389 | 4 % | |||||
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SOURCE MINISO Group Holding Limited
FAQ
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