MINISO Group (MNSO) Q1 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2024 rose 22.8% year-over-year to RMB 12.28 billion, with gross profit up 34.1% and strong growth in both China and overseas markets, including the TOP TOY brand.

• Net addition of 859–1,071 stores as of September 30, 2024, with global store count surpassing 7,400 and significant expansion in overseas markets.

• Adjusted net profit for the period was RMB 1,928 million, up 13.7% year-over-year, with an adjusted net margin of 15.7%.

• Overseas operations contributed 41% revenue growth year-over-year, with directly operated overseas markets growing 64%.

• Acquisition of a 29.4% stake in Yonghui announced, aiming to build a multi-brand retail matrix, with completion expected in H1 2025.

Financial highlights

• Total revenue reached RMB 12.28 billion in the first nine months, up 22.8% year-over-year, with gross margin increasing by 3.7 percentage points to 44.1%.

• Adjusted operating profit up 16% to RMB 2,450 million; adjusted net profit up 13.7% to RMB 1,928 million, with a margin of 15.7%.

• Adjusted EBITDA rose 20.6% to RMB 3,107.1 million, with a margin of 25.3%.

• Free cash flow for the period was RMB 1,466 million, and cash reserves at period end were RMB 6,284 million.

• Selling and administrative expenses up 54%, mainly due to direct-operated store expansion and higher payroll, rent, and depreciation.

Outlook and guidance

• Q4 top-line growth expected at 25%-30%, with overseas growth at 45%-50%.

• Full-year 2024 revenue growth guidance remains at 20%-30% globally; adjusted net profit target is RMB 2.8 billion.

• Net profit margin guidance for Q4 is 16%-16.5%.

• Store expansion targets: 900–1,100 net new stores annually from 2024 to 2028, aiming to double the store base by 2028.

• Focus on IP strategy, globalization, and disciplined capital allocation, with a dividend payout ratio of at least 50% of adjusted net profit.