On the noon of March 12th, Miniso released its performance for the fourth quarter of 2023, with a total revenue of 3.84 billion yuan (the same currency below), a year-on-year increase of 54%; The adjusted net profit was 660 million yuan (non International Financial Reporting Standard Non IFRS), a year-on-year increase of 77%.
"Going global" is a keyword for Miniso in recent years, with a net increase of nearly 1000 stores worldwide in 2023 and a new high in store opening speed. At the performance briefing held on the afternoon of March 12th, Ye Guofu, founder, chairman, and CEO of Miniso, said, "We are a globally operated company that has entered 110 overseas markets. In 2023, overseas revenue accounted for 34% of the company's revenue."
For specific overseas business ideas, he said, "We need to focus on Europe and America, while also developing multiple points and utilizing our flexible store model to fully diversify business risks." For example, in the European market, in addition to deepening the agency market, we will also try various forms of cooperation such as direct flagship stores and equity agents, and have corresponding risk control measures in pricing and supply chain.
The number of global stores has reached 6413
With the release of the fourth quarter performance of 2023, the annual performance of Miniso has also been released. In 2023, Miniso's revenue reached 13.8 billion yuan, a year-on-year increase of nearly 40%; After adjustment, the net profit was approximately 2.36 billion yuan, achieving a year-on-year growth of 110%; The gross profit margin reached 41.2%, a year-on-year increase of 6.3 percentage points.
As of the end of 2023, the number of global stores of Miniso has reached 6413, including 3926 domestic stores, with a net increase of 601 in 2023; There are 2487 overseas stores, with a net increase of 372 in 2023. Overall, in 2023, Miniso's global stores saw a net increase of nearly 1000.
The Daily Economic News reporter sorted out the number of stores of Miniso in the past three years. As of the end of 2021, 2022, and 2023, the global number of stores was 5045, 5440, and 6413, respectively. The calculation shows that the net increase in stores for the whole year of 2023 (973) is about 2.5 times the net increase in 2022 (395), indicating that the pace of expansion is gradually accelerating. Among them, the number of overseas stores is 1877, 2115, and 2487, accounting for 37.2%, 38.9%, and 38.8%, respectively. The proportion of overseas stores is expanding.
Regarding overseas market performance, Ye Guofu commented at the performance briefing: "In 2023, there was a net increase of 372 overseas stores for the whole year, achieving the goal of opening stores at the beginning of the year. The fourth quarter revenue of overseas business was nearly 1.5 billion yuan, once again breaking the record of overseas single quarter revenue, and the year-on-year growth rate of 51% also exceeded the company's most optimistic expectations. At the same time, the fourth quarter overseas GMV (total commodity trading volume) "YoY growth of 38%, with the North American region growing by about 1.1 times, the European market growing by nearly 70%, the Latin American market growing by nearly 40%, and Asia (excluding the Chinese market) growing by 21%."
The reporter noticed that there are three main models for Miniso's "going global" - direct sales, agency, and partner models. As of the end of 2023, Miniso has 238 direct operated stores, 2249 partner stores, and agent stores in overseas markets. Among them, direct operated stores performed particularly well in the fourth quarter. The revenue from the direct market increased by about 90% year-on-year, accounting for over 50% of overseas revenue for the first time.
The proportion of directly operated stores is less than 10%, but they have achieved half of the overseas revenue, which means that the single store revenue generating ability of directly operated stores is higher than that of agency and partner models. The reporter noticed that this is mainly because the direct operated stores are mainly large stores, and the "super stores" used by Miniso to establish brand image are also mainly direct operated stores. For example, in the fourth quarter, Miniso opened its flagship store on Oxford Street in London, covering an area of nearly 3000 square feet (about 280 square meters).
Multi point development to diversify risks
When it comes to the current situation and future strategies of "going abroad", Ye Guofu stated at the performance briefing that Miniso has entered a total of 110 overseas markets, and in 2023, overseas revenue accounted for 34% of the company's revenue, making it a globally operated enterprise; Currently, two-thirds of our stores are located in Asia and Latin America. The Latin American market, represented by Mexico, Chile, and Peru, is a region where Miniso's overseas performance is particularly outstanding, while Europe and America are emerging strategic markets.
He stated that Miniso expects a net increase of 550-650 stores in its overseas market by 2024, with Asia and Latin America still contributing the majority of new stores, and the European and North American markets also expected to open quickly. "For the European market, in addition to deepening our existing agency market, we will also try various forms of cooperation such as direct flagship stores and equity agents to support local market development. At the same time, we will gradually enter the blank country market in Europe."
At the performance briefing, some investors were concerned about the risks of global expansion, and Ye Guofu responded, "Overall, we do not set limits on ourselves. Our future business strategy overseas is to focus on Europe and America, while also developing multiple points and utilizing our flexible store model to fully diversify business risks."
Specifically, Ye Guofu mentioned that in the face of possible trade frictions, the company is fully prepared. The cost advantage, IP advantage, and proprietary brand advantage of Miniso determine the pricing power of the company over its products, which can appropriately transmit the potential adverse impact on costs to terminal pricing. Secondly, on the supply chain side, Miniso has accumulated a lot of overseas supplier resources. Among the company's more than 1400 global suppliers, 24% are overseas suppliers, such as cosmetics in South Korea, toys in Vietnam, textiles in India, skincare and beauty products in Europe, toys and snacks in North America, all of which have long-term stable suppliers.
Finally, Ye Guofu stated that Miniso will continue to adhere to globalization. This is mainly reflected in three aspects. The first is to deepen the global layout of store networks, and the European market will become an important source of overseas growth in the coming years. The second is product globalization, and the development of differentiated overseas products is the growth engine for improving overseas store efficiency. It is necessary to focus on strategic categories and customize research and development according to the different characteristics of overseas markets; The third is talent globalization. As of the end of 2023, the proportion of overseas employees in the company has reached nearly 50%. In the future, we will further strengthen the construction of a global talent pool to better adapt to the development of overseas markets