Variety retailer Miniso has reported lower profit despite a double-digit increase in sales for the second quarter.

The company’s revenue for the quarter ended June 30 soared 23.1 per cent to RMB4.966 billion (US$693.2 million). 

At the Miniso brand, revenue rose 19.5 per cent to $637 million, including a 13.6 per cent increase in Mainland China and 28.6 per cent growth in overseas markets. At Top Toy, revenue jumped 87 per cent to $56.1 million.

Same-store gross merchandise value (GMV) was flat at Miniso, underpinned by low-single digit growth in mainland China and low-single digit decline overseas. Top Toy’s same-store GMV recorded a low-single digit growth rate.

The company noted that Top Toy recently completed strategic financing by Temasek, with a post-valuation of about HK$10 billion ($1.28 billion).

On the bottom line, operating income rose 11.3 per cent to $116.7 million, but profit fell from $82.4 million in the year-ago period to $68.3 million. 

For the first half, revenue grew 21 per cent to $1.3 billion, with Miniso sales up 18 per cent and Top Toy up 73 per cent. Profit for the period went down from $163 million to $126.5 million.

As of June 30, the number of stores on group level was 7905, representing a year-over-year increase of 842 net new stores. Miniso had 7612 stores, including 4305 in Mainland China and 3307 overseas, while Top Toy had 293 locations.

The company expects revenue growth to accelerate for the remainder of the year.