MINISO Group (MNSO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached RMB 4,427 million, up 18.9% year-over-year, with global store count rising to 7,768 and 70% of new stores overseas.

• Overseas revenue surged 30.3% year-over-year, now accounting for 36% of total revenue, while mainland China contributed 56%.

• Gross margin hit a record Q1 high of 44.2%, supported by overseas and TOP TOY segments.

• Adjusted net profit for Q1 2025 was RMB 587 million, with an adjusted net margin of 13.3%.

• Store strategy focused on upgrading to larger, more efficient stores, closing underperformers, and expanding overseas, especially in the U.S. and Mexico.

Financial highlights

• Adjusted EBITDA margin was 23.4%, up 7.5 percentage points year-over-year, with adjusted EBITDA at RMB 1,037 million.

• Gross profit reached RMB 1,958 million, up 21.1% year-over-year.

• Adjusted net profit was RMB 587 million, with a margin of 13.3%, down from RMB 617 million in Q1 2024.

• Selling and administrative expenses rose 45% year-over-year, mainly due to direct store expansion.

• Directly operated stores contributed 22% of revenue, up from 14% last year, with revenue from these stores growing 86% year-over-year.

Outlook and guidance

• Targeting a 2024–2028 revenue CAGR of at least 20% and plans to double global store base by 2028.

• Confident in achieving positive same-store growth in China for the full year and double-digit revenue growth, driven by both same-store and new store performance.

• Operating profit margin targeted at 20% in the mid-to-long term.

• Overseas markets, especially the U.S., expected to see further improvement in same-store performance.

• Aims for over 50% of sales from IP products by 2028.