MINISO's revenue surges due to overseas sales growth

Global Chinese retailer MINISO sees a year-over-year increase of revenue for the first quarter of fiscal year 2023 ended 30 September, primarily driven by a 47.6% year-over-year growth of revenue from overseas markets, while partially offset by a 8.8% year-over-year decrease of revenue from China. 

Among the total revenue of RMB$ 2,772.4 million, revenue from China has dropped from RMB$2,030.8m last year to RMB$1,852.3m. The year-over-year decrease was mainly due to a drop in revenue from the MINISO brand from RMB1,866.5m to RMB1,700.4m, as a result of the resurgence of COVID-19 in China in the September quarter, and partially offset by a year-over-year increase of 13.3% in revenue from the TOP TOY brand. 

During the peak summer sales season of July and August, when the pandemic situation was relatively stable, the company's gross merchandise volume (GMV) recovered to about 95% of the levels from the same period of last year. In September, pandemic outbreaks in major cities such as Shenzhen and Chengdu negatively impacted its GMV, which reached about 80% of the level from September of last year. During the quarter, an average of 2%, 5% and 7% of stores were unable to operate due to the pandemic in July, August and September, respectively.

On the other hand, revenue from overseas markets was RMB$920.2m, accounting for 33.2% of our total revenue and representing an increase of 47.6% year-over-year. The increase was primarily due to a year-over-year increase of 9.7% in average store count and a year-over-year growth of 34.6% in average revenue per MINISO store in overseas markets. 

Guofu Ye, founder, chairman, and CEO of MINISO, said, "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 globalisation strategy, bolstering the strength of our product offerings and optimising 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 127% year-on-year to RMB417 million in the September quarter, and adjusted net margin reaching its highest ever level at 15.1%," Ye added. 

"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," said Saiyin Zhang, chief financial officer and executive vice president of MINISO.

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