Chinese discount chain Miniso has posted a 15.6 per cent growth in gross profit to US$144.6 million for the quarter to December 31 despite a 10 per cent year-on-year slump in revenue.
The company said the drop in sales was primarily driven by the resurgence of Covid-19 in China, which caused disruptions to the operation of the company’s logistics and transportation service providers.
The company generated $361.7 million in sales during the quarter, with adjusted net profit surging 82.1 per cent year-on-year to $54.1 million. During the period, Miniso opened 144 new stores, of which 88 are outside China.
Its overseas operation – which accounts for 40 per cent of the company’s revenue – reached its peak over the past three years at $143 million.
“[This year] we will continue to execute a disciplined financial policy in terms of budgeting, cost controls and allocation of capital as we focus on consistently delivering solid profits and healthy cash flow,” said Eason Jingjing Zhang, CFO and VP at Miniso.
As of the end of last year, the brand had 5440 stores around the world, 2115 of them outside Mainland China. Earlier this month, the discount retailer launched its first flagship in China after 10 years of operation in the country.
The company also recently announced its new global brand strategy dubbed ‘Miniso – Bringing Joy to the World’ to enhance customers’ experience through collaborations and original designs.
