Half Year 2024 MINISO Group Holding Ltd Earnings Call Transcript
Key Points
- MINISO Group Holding Ltd (MNSO) achieved an 18% year-over-year increase in adjusted net profit for the first half of 2024, excluding net foreign exchange impact.
- The company saw a robust 60% year-over-year increase in GMV in mainland China, indicating strong domestic performance.
- MINISO's overseas revenue exceeded RMB2.7 billion, marking a 43% year-over-year increase, with direct operation market revenue growing by 70%.
- The company added 256 new stores in overseas markets in the first half of 2024, with a significant portion of these in the United States.
- MINISO's IP product strategy has been effective, with IP product sales contributing nearly 50% to overseas revenue and showing a 40% year-over-year growth in domestic markets.
- Despite the positive growth, the company is still in the investment stage in overseas markets, which may impact short-term profitability.
- The domestic consumer market in China remains soft, posing challenges for maintaining high same-store sales growth.
- SG&A expenses increased by 56%, with selling and distribution expenses rising by 66%, impacting overall profitability.
- Logistics expenses increased by 54%, reflecting higher costs due to international pricing tensions.
- Operating profit margin decreased to 19.3% from 20.4% in the same period last year, indicating pressure on margins.
(audio in progress) (interpreted) especially in overseas markets, especially in direct operating market and especially in the United States. The pace of store expansion in the United States have exceed expectation continuing to double store count and a double-digit same-store sales growth, even though we are still at investment stage in overseas market under our effective cost control measures that adjust net profit in the first half of 2024 still increased 18% year-over-year, excluding net foreign exchange impact, but adjusted net profit increased 26% year-over-year, slightly faster than the growth of revenue.
(spoken in foreign language)
(interpreted) On our Investor Day earlier this year, I shared our mission vision long-term strategy and implementing path in the next five years. Our mission is (inaudible) and our vision is to become the world's number one IP design retail group.
To relieve this vision created affordability, globalization and product innovations have been
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