MINISO Group (MNSO) Q1 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2024 reached RMB 12.28 billion, up 22.8% year-over-year, with gross profit of RMB 5.42 billion, and gross margin at 44.1%.

• Net addition of 859 stores as of September 30, 2024, with global store count surpassing 7,400, driven by strong expansion in China and overseas.

• Overseas revenue grew 41% year-over-year, with directly operated overseas markets up 64% and distributor markets up 22%.

• Adjusted net profit for the period was RMB 1.93 billion, up 13.7% year-over-year, with an adjusted net margin of 15.7%.

• Strategic focus on quality retail, interest-based consumption, multi-brand expansion, and the acquisition of a 29.4% stake in Yonghui.

Financial highlights

• Total revenue reached RMB 12.28 billion, up 23% year-over-year for the first nine months of 2024.

• Gross profit margin increased by 3.7 percentage points to 44.1%, with record quarterly gross margin of 44.9%.

• Adjusted operating profit rose 16% to RMB 2.45 billion, and adjusted EBITDA margin was 25.3%.

• Cash reserves at RMB 6.28 billion, with operating cash flow of RMB 2.03 billion and free cash flow of RMB 1.47 billion.

• Selling and administrative expenses up 54%, now 25% of revenue, mainly due to direct operated store expansion.

Outlook and guidance

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

• Full-year 2024 revenue growth target remains 20%-30% globally, with adjusted net profit target of RMB 2.8 billion.

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

• Store expansion guidance: 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 at least 50% of adjusted net profit paid as dividends.