ANTA Sports Products (2020) H1 2024 earnings summary

Executive summary

• H1 revenue rose 13.8% YoY to RMB33.74 billion, with growth across all brands.

• Profit attributable to equity shareholders excluding Amer Sports Listing effects increased 17.0% to RMB6.16 billion; including those effects, it rose 62.6% to RMB7.72 billion.

• Gross profit margin rose 0.8 percentage points to 64.1%; operating profit margin remained stable at 25.7%.

• Net operating cash inflow was RMB8.50 billion and free cash inflow was RMB7.62 billion.

Financial highlights

• Operating profit increased 13.6% to RMB8.66 billion.

• Net profit margin rose to 25.0% from 17.9% year-over-year.

• Basic EPS increased 58.0% to RMB2.75.

Outlook and guidance

• Management remained cautiously optimistic about China's sportswear industry, with a focus on single-focus, multi-brand and globalization strategies.

• Year-end store targets: ANTA 7,100–7,200; ANTA KIDS 2,800–2,900; FILA/FILA KIDS/FUSION 2,100–2,200; DESCENTE 220–230; KOLON SPORT 190–200.

• Priorities include R&D, digitalization, differentiated store formats, product innovation and overseas expansion, including Southeast Asia, North America and Europe.