Chinese budget retailer Miniso Group, which listed in Hong Kong in July, reported its best quarter on record as historical highs in sales and new stores helped underpin a surge in profitability.
Earnings rose 49 per cent to 612 million yuan (US$84.7 million) in the three months to September from a year earlier, it said in a filing to the Hong Kong stock exchange on Tuesday. Adjusted net profit was 642.0 million yuan, an increase of 54 per cent from last year’s 417 million yuan.
“In many ways, this September quarter was our best quarter so far, with historical highs in revenue, net profit and net store openings,” founder and chairman Ye Guofu said. “It also marked an important milestone for Miniso as our global store network surpassed 6,000.”
Miniso founder Ye Guofu gives a speech during the New Retail Innovation Development Summit in August 2018 in Wuhan. Photo: Getty Images
Based in Guangzhou in southern Guangdong province, the budget retailer added 324 stores last quarter to take its network to 6,115 on September 30, versus 819 stores a year ago. It opened 477 stores in mainland China in the first nine months of 2023, surpassing its expansion target.
The stock jumped 3.2 per cent to HK$54 on Tuesday, bringing the advance to 33 per cent since its listing in Hong Kong on July 13. Its depositary shares are listed in New York.
Miniso said revenue increased by 37 per cent to 3.79 billion yuan from the same period last year. Sales in mainland China grew by 35 per cent, while those outside the country recorded a 41 per cent increase, according to the filing.
“We currently expect to add another 100 to 200 new stores on a net basis in China in the remaining calendar year of 2023, and we will strive to deliver our target of opening 350 to 450 stores [per quarter] in overseas markets,” Ye said.
Miniso, founded by billionaire Ye in 2013, thrives by selling a variety of lifestyle products such as small electronic gadgets and appliances, beauty tools, snacks and toys. It has also collaborated with global brands including Barbie, Peanuts, Hello Kitty, Disney and Pixar to push sales.
Miniso is looking to expand its coverage in offshore markets, the founder said.
“With a more normalised travel this year, we are able to dedicate more resources into our overseas directly operated markets, the revenue of which has increased by more than 80 per cent for two consecutive quarters,” Ye said.
The company is also encouraged by the developments in the North American market. Sales in the market increased by almost 160 per cent during the quarter, he added.