MINISO Group Announces March Quarter 2022 Results
Financial Highlights for the Third Quarter of Fiscal Year 2022 ended
-
Revenue was
RMB2,341.0 million (US$369.3 million ), representing an increase of 5.0% year over year, compared toRMB2,772.8 million in the previous quarter. -
Gross profit was
RMB706.5 million (US$111.5 million ), representing an increase of 12.8% year over year, compared toRMB862.9 million in the previous quarter. - Gross margin was 30.2%, compared to 28.1% in the same period of 2021 and 31.1% in the previous quarter.
-
Operating profit was
RMB141.0 million (US$22.2 million ), compared toRMB161.1 million in the same period of 2021 andRMB255.4 million in the previous quarter. -
Profit for the period was
RMB92.7 million (US$14.6 million ), compared toRMB115.0 million in the same period of 2021 andRMB184.1 million in the previous quarter. -
Adjusted net profit[1]was
RMB110.7 million (US$17.5 million ), compared toRMB149.0 million in the same period of 2021 andRMB204.8 million in the previous quarter. - Adjusted net margin[1] was 4.7%, compared to 6.7% in the same period of 2021 and 7.4% in the previous quarter.
Operational Highlights for the Third Quarter of Fiscal Year 2022 ended
-
Number of
MINISO stores was 5,113 as ofMarch 31, 2022 , increasing by 526 stores year over year and 68 stores quarter over quarter, respectively. -
Number of
MINISO stores inChina was 3,197 as ofMarch 31, 2022 , increasing by 385 stores year over year and 29 stores quarter over quarter, respectively. -
Number of
MINISO stores in overseas markets was 1,916 as ofMarch 31, 2022 , increasing by 141 stores year over year and 39 stores quarter over quarter, respectively. -
Number of TOP TOY stores was 92 as of
March 31, 2022 , increasing by 83 stores year over year and 3 stores quarter over quarter, respectively.
The following table provides a breakdown of the number of
|
As of |
|
|||
|
2021 |
2021 |
2022 |
YoY |
QoQ |
Number of |
4,587 |
5,045 |
5,113 |
526 |
68 |
China |
2,812 |
3,168 |
3,197 |
385 |
29 |
—Directly operated stores |
5 |
5 |
11 |
6 |
6 |
—Third-party stores |
2,807 |
3,163 |
3,186 |
379 |
23 |
Overseas |
1,775 |
1,877 |
1,916 |
141 |
39 |
—Directly operated stores [3] |
130 |
136 |
136 |
6 |
- |
—Third-party stores |
1,645 |
1,741 |
1,780 |
135 |
39 |
Number of TOP TOY stores [4] |
9 |
89 |
92 |
83 |
3 |
—Directly operated stores |
2 |
5 |
4 |
2 |
(1) |
—Third-party stores |
7 |
84 |
88 |
81 |
4 |
[1]See the sections titled "Non-IFRS Financial Measures" and "Reconciliation of Non-IFRS Financial Measures" in this press release for more information. |
[2]" |
[3]In |
[4]"TOP TOY stores" are any of the offline stores operated under the "TOP TOY" brand name, including those directly operated by the Company ("Directly operated stores"), and those operated by third parties under the MINISO Retail Partner model ("Third-party stores"). |
Mr.
"Global retailers are also challenged by cost pressures as we enter one of the highest inflation in four decades. History repeatedly reminded us that consumers tend to look for value in a high-inflation environment, and it is a good opportunity for us. We will leverage
Mr.
"Although the challenges we are facing are unprecedented, we are confident with our competitive advantages and optimistic about our growth potential in inflation times. The fundamentals of our business remain strong, and we will continue to focus on those elements of the business that are under our control to drive growth and maintain a healthy level of margins. We have taken necessary actions such as controlling operational overheads, reducing personnel-related expenses and adjusting marketing plans, in order to ease the short-term impact from the challenges we face on our bottom line."
Recent Developments
Impact of COVID-19
The recent outbreak of the Omicron variants of COVID-19 has severely impacted our domestic operations and a part of our overseas operations in the quarter ended
In China, the outbreaks of the COVID-19 pandemic during this quarter, including those in
In overseas markets, 74 stores or 4% of our total overseas stores had not resumed operations as of
Unaudited Financial Results for the third quarter of fiscal year 2022 ended
Revenue was
Revenue generated from domestic operations was
Revenue generated from international operations was
Cost of sales was
Gross profit was
Gross margin was 30.2%, compared to 28.1% in the same period of 2021. The year-over-year increase was primarily due to (i) revenue contribution of international operations increased from 19.8% in the same period of 2021 to 22.1% in this quarter, typically international operations have higher gross margin than domestic operations, and (ii) higher gross margin contributed by newly launched products in relation to our execution of strategic brand upgrade of
Other income was
Selling and distribution expenses were
General and administrative expenses were
Other net income was
Operating profit was
Profit for the period was
Adjusted net profit, which represents profit for the period excluding equity-settled share-based payment expenses, was
Adjusted net margin was 4.7%, compared to 6.7% in the same period of 2021.
Basic and diluted earnings per American Depositary Share ("ADS") were
Adjusted basic and diluted earnings per ADS were
See the sections entitled "Non-IFRS Financial Measures" and "Reconciliation of Non-IFRS Financial Measures" in this press release for more information about adjusted net profit, adjusted net margin, and adjusted basic and diluted earnings per ADS.
As of
Business Outlook
For the fourth quarter of fiscal year 2022 ending
Conference Call
The Company's management will hold an earnings conference call at
Access 1
Zoom link: https://dooyle.zoom.us/j/86584019613?pwd=SUUrak9EZEpCOEpiZE92aVdjMGJRdz09
Meeting Number: 865 8401 9613
Meeting Passcode: 888666
Access 2
Listeners may access the call by dialing the following numbers with the same meeting number and passcode with Access 1.
United States Toll Free: |
833 548 0276 (or +1 646 518 9805) |
Mainland |
400 182 3168 (or 400 616 8835) |
|
+852 5803 3730 (or +852 5803 3731) |
|
+44 203 481 5237 (or +44 131 460 1196) |
|
+33 1 7037 9729 (or +33 1 7037 2246) |
|
+65 3158 7288 (or +65 3165 1065) |
|
+1 438 809 7799 (or +1 204 272 7920) |
Access 3
Listeners can also access the meeting through the Company's investor relations website at http://ir.miniso.com/.
A replay will be available approximately two hours after the conclusion of the live event at the Company's investor relations website at http://ir.miniso.com/.
About
Exchange Rate
The
Non-IFRS Financial Measures
In evaluating the business,
These non-IFRS financial measures are not defined under IFRS and are not presented in accordance with IFRS. These non-IFRS financial measures have limitations as analytical tools. One of the key limitations of using these non-IFRS financial measures is that they do not reflect all items of income and expense that affect
These non-IFRS financial measures should not be considered in isolation or construed as alternatives to profit/(loss), net profit/(loss) margin, basic and diluted earnings/(loss) per share and basic and diluted earnings/(loss) per ADS, as applicable, or any other measures of performance or as indicators of
For more information on the non-IFRS financial measures, please see the table captioned "Reconciliation of Non-IFRS Financial Measures" set forth at the end of this press release.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
Investor Relations Contact:
Email: ir@miniso.com
Phone: +86 (20) 36228788 Ext.8039
|
||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
||||||
(Expressed in thousands) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at |
|
As at |
||
2021 |
2022 |
|||||
(Audited) |
(Unaudited) |
|||||
|
|
RMB'000 |
|
RMB'000 |
|
US$'000 |
ASSETS |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Property, plant and equipment |
|
76,316 |
|
399,053 |
|
62,949 |
Right-of-use assets |
|
689,887 |
|
2,348,776 |
|
370,510 |
Intangible assets |
|
61,005 |
|
47,958 |
|
7,565 |
|
|
19,640 |
|
18,890 |
|
2,980 |
Deferred tax assets |
|
168,552 |
|
162,561 |
|
25,643 |
Prepayments |
|
138,481 |
|
201,958 |
|
31,858 |
Other receivables |
|
- |
|
10,000 |
|
1,578 |
Interest in an equity-accounted investee |
|
352,062 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
1,505,943 |
|
3,189,196 |
|
503,083 |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Other investments |
|
102,968 |
|
206,526 |
|
32,579 |
Inventories |
|
1,496,061 |
|
1,163,040 |
|
183,465 |
Trade and other receivables |
|
824,725 |
|
1,060,564 |
|
167,300 |
Cash and cash equivalents |
|
6,771,653 |
|
5,269,882 |
|
831,303 |
Restricted cash |
|
3,680 |
|
9,925 |
|
1,566 |
|
|
|
|
|
|
|
|
|
9,199,087 |
|
7,709,937 |
|
1,216,213 |
|
|
|
|
|
|
|
Total assets |
|
10,705,030 |
|
10,899,133 |
|
1,719,296 |
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
Share capital |
|
92 |
|
92 |
|
15 |
Additional paid-in capital |
|
8,289,160 |
|
7,982,717 |
|
1,259,243 |
Other reserves |
|
928,005 |
|
963,033 |
|
151,915 |
Accumulated losses |
|
(2,558,291) |
|
(2,149,418) |
|
(339,062) |
|
|
|
|
|
|
|
Equity attributable to equity holders of the |
|
6,658,966 |
|
6,796,424 |
|
1,072,111 |
Non-controlling interests |
|
(6,812) |
|
(6,992) |
|
(1,103) |
|
|
|
|
|
|
|
Total equity |
|
6,652,154 |
|
6,789,432 |
|
1,071,008 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Contract liabilities |
|
59,947 |
|
51,317 |
|
8,095 |
Loans and borrowings |
|
6,925 |
|
6,336 |
|
999 |
Lease liabilities |
|
483,144 |
|
385,882 |
|
60,871 |
Deferred income |
|
20,005 |
|
15,188 |
|
2,396 |
|
|
|
|
|
|
|
|
|
570,021 |
|
458,723 |
|
72,361 |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Loans and borrowings |
|
13,669 |
|
5,142 |
|
811 |
Trade and other payables |
|
2,809,182 |
|
2,979,846 |
|
470,059 |
Contract liabilities |
|
266,919 |
|
328,001 |
|
51,741 |
Lease liabilities |
|
321,268 |
|
260,613 |
|
41,111 |
Deferred income |
|
6,060 |
|
5,955 |
|
939 |
Current taxation |
|
65,757 |
|
71,421 |
|
11,266 |
|
|
|
|
|
|
|
|
|
3,482,855 |
|
3,650,978 |
|
575,927 |
|
|
|
|
|
|
|
Total liabilities |
|
4,052,876 |
|
4,109,701 |
|
648,288 |
|
|
|
|
|
|
|
Total equity and liabilities |
|
10,705,030 |
|
10,899,133 |
|
1,719,296 |
|
||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS |
||||||||||||
(Expressed in thousands, except for per share and per ADS data) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
||||||||
|
|
2021 |
|
2022 |
|
2021 |
|
2022 |
||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||||||||
|
|
RMB'000 |
|
RMB'000 |
|
US$ '000 |
|
RMB'000 |
|
RMB'000 |
|
US$ '000 |
Continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
2,229,444 |
|
2,341,035 |
|
369,289 |
|
6,599,304 |
|
7,767,943 |
|
1,225,363 |
Cost of sales |
|
(1,602,975) |
|
(1,634,519) |
|
(257,839) |
|
(4,807,691) |
|
(5,470,085) |
|
(862,885) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
626,469 |
|
706,516 |
|
111,450 |
|
1,791,613 |
|
2,297,858 |
|
362,478 |
Other income |
|
4,284 |
|
2,296 |
|
362 |
|
48,088 |
|
20,882 |
|
3,294 |
Selling and distribution expenses |
|
(296,466) |
|
(362,000) |
|
(57,104) |
|
(923,958) |
|
(1,087,622) |
|
(171,568) |
General and administrative expenses |
|
(169,531) |
|
(198,722) |
|
(31,348) |
|
(610,694) |
|
(631,418) |
|
(99,604) |
Other net income / (loss) |
|
8,426 |
|
499 |
|
79 |
|
(62,329) |
|
46,463 |
|
7,329 |
Credit loss on trade and other |
|
(12,123) |
|
(5,671) |
|
(895) |
|
(29,510) |
|
(24,762) |
|
(3,906) |
Impairment loss on non-current assets |
|
- |
|
(1,931) |
|
(305) |
|
- |
|
(11,467) |
|
(1,809) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
161,059 |
|
140,987 |
|
22,239 |
|
213,210 |
|
609,934 |
|
96,214 |
Finance income |
|
8,646 |
|
12,744 |
|
2,010 |
|
31,690 |
|
39,181 |
|
6,181 |
Finance costs |
|
(6,407) |
|
(8,141) |
|
(1,284) |
|
(20,267) |
|
(25,407) |
|
(4,008) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net finance income |
|
2,239 |
|
4,603 |
|
726 |
|
11,423 |
|
13,774 |
|
2,173 |
Fair value changes of redeemable shares |
|
- |
|
- |
|
- |
|
(1,625,287) |
|
- |
|
- |
Share of loss of equity-accounted |
|
(825) |
|
- |
|
- |
|
(825) |
|
(8,162) |
|
(1,287) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) before taxation |
|
162,473 |
|
145,590 |
|
22,965 |
|
(1,401,479) |
|
615,546 |
|
97,100 |
Income tax expense |
|
(47,503) |
|
(52,918) |
|
(8,348) |
|
(139,118) |
|
(184,256) |
|
(29,066) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period |
|
114,970 |
|
92,672 |
|
14,617 |
|
(1,540,597) |
|
431,290 |
|
68,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
Equity shareholders of the Company |
|
121,860 |
|
96,554 |
|
15,229 |
|
(1,529,997) |
|
433,333 |
|
68,356 |
Non-controlling interests |
|
(6,890) |
|
(3,882) |
|
(612) |
|
(10,600) |
|
(2,043) |
|
(322) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share for ordinary |
|
|
|
|
|
|
|
|
|
|
|
|
-Basic |
|
0.10 |
|
0.08 |
|
0.01 |
|
(1.32) |
|
0.36 |
|
0.06 |
-Diluted |
|
0.10 |
|
0.08 |
|
0.01 |
|
(1.32) |
|
0.36 |
|
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per ADS |
|
|
|
|
|
|
|
|
|
|
|
|
(Each ADS represents 4 Class A |
||||||||||||
-Basic |
|
0.40 |
|
0.32 |
|
0.05 |
|
(5.28) |
|
1.44 |
|
0.23 |
-Diluted |
|
0.40 |
|
0.32 |
|
0.05 |
|
(5.28) |
|
1.44 |
|
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
|||||||||||||
(Expressed in thousands) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|||||||||
|
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|||||||||
|
|
RMB '000 |
|
RMB '000 |
|
US$ '000 |
|
RMB '000 |
|
RMB '000 |
|
US$ '000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period |
|
114,970 |
|
92,672 |
|
14,617 |
|
(1,540,597) |
|
431,290 |
|
68,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be |
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on |
|
7,684 |
|
(11,139) |
|
(1,757) |
|
(40,089) |
|
(1,962) |
|
(309) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive |
|
7,684 |
|
(11,139) |
|
(1,757) |
|
(40,089) |
|
(1,962) |
|
(309) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive |
|
122,654 |
|
81,533 |
|
12,860 |
|
(1,580,686) |
|
429,328 |
|
67,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity shareholders of the |
|
130,401 |
|
83,963 |
|
13,244 |
|
(1,568,554) |
|
429,508 |
|
67,753 |
|
Non-controlling interests |
|
(7,747) |
|
(2,430) |
|
(384) |
|
(12,132) |
|
(180) |
|
(28) |
|
|
||||||||||||
RECONCILIATION OF NON-IFRS FINANCIAL MEASURES |
||||||||||||
(Expressed in thousands, except for per share and per ADS data) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
||||||||
|
|
2021 |
|
2022 |
|
2021 |
|
2022 |
||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||||||||
|
|
RMB'000 |
|
RMB'000 |
|
US$'000 |
|
RMB'000 |
|
RMB'000 |
|
US$'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of profit/(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period |
|
114,970 |
|
92,672 |
|
14,617 |
|
(1,540,597) |
|
431,290 |
|
68,034 |
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
Fair value changes of
|
|
- |
|
- |
|
- |
|
1,625,287 |
|
- |
|
- |
Equity-settled share-based |
|
33,983 |
|
18,027 |
|
2,845 |
|
250,362 |
|
68,427 |
|
10,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net profit |
|
148,953 |
|
110,699 |
|
17,462 |
|
335,052 |
|
499,717 |
|
78,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
Equity shareholders of the |
|
155,843 |
|
114,581 |
|
18,074 |
|
345,652 |
|
501,760 |
|
79,150 |
Non-controlling interests |
|
(6,890) |
|
(3,882) |
|
(612) |
|
(10,600) |
|
(2,043) |
|
(322) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings per |
|
|
|
|
|
|
|
|
|
|
|
|
-Basic |
|
0.13 |
|
0.09 |
|
0.01 |
|
0.30 |
|
0.42 |
|
0.07 |
-Diluted |
|
0.13 |
|
0.09 |
|
0.01 |
|
0.30 |
|
0.41 |
|
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings per |
|
|
|
|
|
|
|
|
|
|
|
|
(Each ADS represents 4 Class |
||||||||||||
-Basic |
|
0.52 |
|
0.36 |
|
0.06 |
|
1.20 |
|
1.68 |
|
0.27 |
-Diluted |
|
0.52 |
|
0.36 |
|
0.06 |
|
1.20 |
|
1.64 |
|
0.26 |
|
||||||||||||||||
UNAUDITED ADDITIONAL INFORMATION |
||||||||||||||||
(Expressed in millions, except percentages) |
||||||||||||||||
|
|
Three months ended |
|
|
|
Nine months ended |
|
|
||||||||
|
|
2021 |
|
2022 |
|
YOY |
|
2021 |
|
2022 |
|
YOY |
||||
(Unaudited) |
(Unaudited) |
|
(Unaudited) |
(Unaudited) |
|
|||||||||||
|
|
RMB |
|
RMB |
|
US$ |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
|
1,788 |
|
1,823 |
|
288 |
|
2% |
|
5,345 |
|
5,909 |
|
932 |
|
11% |
-MINISO Brand |
|
1,715 |
|
1,686 |
|
266 |
|
-2% |
|
5,140 |
|
5,436 |
|
857 |
|
6% |
-TOP TOY Brand |
|
23 |
|
111 |
|
18 |
|
377% |
|
26 |
|
352 |
|
56 |
|
1254% |
-Others |
|
50 |
|
26 |
|
4 |
|
-48% |
|
179 |
|
121 |
|
19 |
|
-32% |
International Operations |
|
441 |
|
518 |
|
81 |
|
17% |
|
1,254 |
|
1,859 |
|
293 |
|
48% |
|
|
2,229 |
|
2,341 |
|
369 |
|
5% |
|
6,599 |
|
7,768 |
|
1,225 |
|
18% |
[5] After reviewing its Non-IFRS Financial Measures and their reconciliation items, the Company has determined that impairment loss on non-current assets, which was a reconciliation item for the calculation of the non-IFRS financial measures, should henceforth be excluded as a reconciliation item, given that (i) the Company now considers it to be of recurring nature as the Company expects to continue to record such expenses in the foreseeable future, and (ii) the Company has determined that it directly correlates with the underlying performance of its business operations. Based on this review, the Company has modified the definition of its adjusted net profit to exclude impairment loss on non-current assets as a reconciliation item starting from this quarter. |
[6] The adjusted basic and diluted net earnings per share are computed using adjusted net profit attributable to the equity shareholders of the Company, and the number of ordinary shares used in GAAP basic and diluted earnings per share calculation after retrospectively adjusting for the effect of Series A preferred shares issued by the Company that are deemed to have been converted into ordinary shares since |
View original content:https://www.prnewswire.com/news-releases/miniso-group-announces-march-quarter-2022-results-301555725.html
SOURCE