On March 12th, MNSO. US (09896. HK) announced its semi annual and quarterly reports for the year ended December 31, 2023.
During the six months ended December 31, 2023, the company's revenue was 7.632 billion yuan, a year-on-year increase of 44.91%; The adjusted net profit was 1.303 billion yuan, a year-on-year increase of 64.77%. Among them, the company's revenue in the fourth quarter reached 3.84 billion yuan, a year-on-year increase of 54%; Adjusted net profit of 660 million yuan (non International Financial Reporting Standard Non IFRS), a year-on-year increase of 77%; The gross profit margin reached 43.1%, a year-on-year increase of 3.1 percentage points.
In January of this year, Miniso announced that it would change the company's fiscal year settlement date from June 30th to December 31st. According to the latest financial report data, in 2023, Miniso achieved a revenue of approximately 13.84 billion yuan. The revenue for the first to fourth quarters was 2.954 billion yuan, 3.252 billion yuan, 3.791 billion yuan, and 3.84 billion yuan, respectively. The quarter on quarter growth rate was 1.3%, and the month on month growth rate for the first time this year dropped to single digits.
After the release of performance, the Hong Kong stock price of Miniso Hong Kong rose by over 15% at the close of trading, and the total market value rebounded to HKD 50 billion. However, as of the close on March 13th, the stock price of Miniso fell by over 5%.
Taste the sweetness overseas
At present, Miniso's business mainly includes three major sectors: domestic, overseas, and TOP TOY.
As of December 31, 2023, the number of stores of Miniso has reached 6413, including 3926 stores in China and 2487 stores overseas; The number of TOP TOY stores is 148. Throughout 2023, Miniso's global store network saw a net increase of over 1000 stores (including the top 30 new stores).
In terms of specific business, the company's domestic business revenue in the fourth quarter was 2.35 billion yuan, a year-on-year increase of 56%. Among them, the offline sales GMV of domestic business increased by about 66% year-on-year. Throughout 2023, Miniso achieved a year-on-year growth of approximately 39% in domestic offline sales.
Mingchuang Youpin's overseas market revenue also maintained a certain growth rate, with a revenue of nearly 1.5 billion yuan in the fourth quarter, a year-on-year increase of 51%, exceeding the company's expectations, which also broke its overseas business single quarter revenue record. In 2023, its overseas revenue increased by nearly 47% year-on-year, accounting for 34% of the company's total revenue.
At the performance conference call of MINISO held on March 12th, Ye Guofu, Chairman of the Board of Directors and CEO of MINISO, further clarified its overseas layout. He said that Europe will be another important market for Miniso's efforts in the next five years, and the company has recently increased its support for the European agency market. Mingchuang Youpin's super large store has also successively settled overseas. In the fourth quarter, its flagship store in the UK opened on Oxford Street in London, covering an area of nearly 3000 square feet.
As a brand under Miniso that focuses on the trendy gaming market, TOP TOY began operations in December 2020. In the fourth quarter, the brand's revenue was 190 million yuan, a year-on-year increase of 90%, with a total of 148 stores covering over 60 cities.
In order to attract consumers, Miniso has also been continuously expanding its brand SKUs. In the half year ending December 31, 2023, Miniso had 484 million SKUs, an increase of approximately 131 million compared to the same period last year; The number of SKUs for TOP TOY has also significantly increased from approximately 3800 in the same period last year to approximately 8400 this year.
Impact on Wandian
The expansion of stores and IP authorization for Miniso are still ongoing.
As of the end of 2023, Miniso had opened 973 new stores throughout the year, compared to only 395 in 2022, indicating a significant acceleration in growth. Ye Guofu revealed, "Miniso is expected to maintain a net increase of 350-450 stores in China by 2024, and a net increase of 550-650 stores in overseas markets."
At the first investor day event of Miniso on January 18th this year, he planned the company's strategic map for the next five years. Ye Guofu stated that MINISO's goal is to achieve a net increase of 900-1100 stores per year for the group from 2024 to 2028. By the end of 2028, the number of global stores is close to doubling compared to the end of 2023. The compound growth rate of the group's revenue from 2024 to 2028 will not be less than 20%, and the proportion of IP product sales in 2028 will exceed 50%. This also means that Miniso is once again launching a sprint towards global brands.
According to Securities Times, Ye Guofu once proposed a plan to achieve the goal of "billions of stores in 100 countries and regions" by 2022, that is, the group will expand to 100 countries and regions, achieve an annual revenue of 100 billion yuan, and have 10000 global stores, but this goal has not been achieved.
In addition to constantly expanding stores, collaborating with well-known IPs is also an important factor for Miniso to continuously attract consumers. Under its "big IP" strategy, in 2023, Miniso, together with Barbie, Little Beaver "Zanmang Loopy" and others, launched a joint venture to achieve great popularity. IP is also an important source of growth for Miniso's overseas performance, with overseas IP sales accounting for over 40% of its total overseas sales in 2023. At the performance conference, Ye Guofu emphasized that Miniso will continue to promote IP cooperation in 2024. According to incomplete statistics, Miniso has collaborated with nearly 100 well-known IPs worldwide, such as Disney, Sanrio, Pokemon, Jurassic, and Barbie.
This has also driven the continuous increase in sales and distribution expenses of Miniso. In the second half of 2023, Miniso's sales and distribution expenses were 1.363 billion yuan, compared to 798 million yuan in the same period last year, an increase of 70.80% year-on-year.
From the full year of 2023, the sales and distribution expenses of Miniso from the first to fourth quarters were 439 million yuan, 479 million yuan, 641 million yuan, and 722 million yuan, respectively, with a clear upward trend. In its financial report, it also attributed it to business development leading to increased personnel related expenses, logistics and IP authorization fees, brand upgrades, and increased promotion and advertising expenses related to the opening of new stores in overseas markets.
It is worth mentioning that, unlike the initial impression that consumers had of Miniso's "ten yuan store," in 2023, Miniso's product prices showed an upward trend. In the second half of 2023, the transaction volume of Miniso's domestic stores was 183 million, compared to 120 million in the same period last year; The average selling price is 14.2 yuan, with 11.8 yuan and 12.8 yuan for the same period in 2021 and 2022, respectively.
Times Finance has noticed that there are also many related posts on social media, such as "70 yuan hats, 50 yuan slippers, and hundreds of co branded dolls", which have made netizens exclaim that they are becoming increasingly expensive.