MINISO Approves Dividend and Opens Amsterdam Flagship Amidst Global Growth Strategy

MINISO Group Holding Limited has approved a US$0.2896 per ADS interim cash dividend, signaling financial confidence. This move coincides with the grand opening of its first Amsterdam flagship, highlighting its efforts to strengthen European presence and introduce immersive retail experiences to younger consumers. The dividend is unlikely to significantly impact short-term performance, with investors focusing on overseas store performance and the risk of thinning net margins from aggressive expansion.

MINISO Group Holding Limited (MNSO) has approved an interim cash dividend of $0.2896 per ADS, payable on September 16, 2025, for ordinary shareholders, and September 19, 2025, for ADS holders. This move underscores the company's financial confidence and aligns with its strategic efforts to strengthen its European presence, as evidenced by the recent opening of its first Amsterdam flagship store [1].

The dividend comes amidst a mixed earnings report for the second quarter, with a decline in earnings per share (EPS) and net income compared to the same period last year. However, revenue for the period rose by 23.1% to RMB4.966 billion, driven by strong overseas growth, particularly in the US and Mainland China [2]. The company's gross margin improved to 44.3%, reflecting increased overseas revenue and optimization of the TOP TOY brand [3].

Despite the earnings drop, MINISO has returned a significant amount to shareholders, with RMB1.07 billion returned through share buybacks and dividends, representing 84% of the H1 adjusted net profit [4]. The company's large store strategy has been successful, with new stores in the US achieving 1.5 times higher efficiency than existing stores. The company also made significant progress in its proprietary IP strategy, with successful launches like the Yuyuan IP [3].

However, MINISO faces challenges in maintaining same-store sales growth in lower-tier cities compared to higher-tier cities in Mainland China. The Latin American market experienced a revenue decline in H1 due to inventory adjustments and currency fluctuations. Additionally, the company's administrative expenses grew by 90%, primarily due to increased employee costs and investments in directly operated stores [3].

MINISO is scheduled to announce its Q4 earnings results on Thursday, August 21st, before the market opens. The consensus EPS estimate is $0.24, a 20.0% year-over-year (YoY) decline, while the consensus revenue estimate is $677.28 million, a 25.2% YoY increase [1]. Over the last 2 years, MNSO has beaten EPS estimates 88% of the time and revenue estimates 88% of the time [1].

The dividend is unlikely to significantly impact short-term performance, with investors focusing on overseas store performance and the risk of thinning net margins from aggressive expansion. MINISO's strategic focus on the European market, particularly with the Amsterdam flagship store, aims to introduce immersive retail experiences to younger consumers and further diversify its revenue streams [1].

References:
[1] https://seekingalpha.com/news/4487529-miniso-group-holding-q4-2025-earnings-preview
[2] https://www.rttnews.com/3568008/miniso-group-holding-limited-profit-drops-in-q2.aspx?type=ern
[3] https://www.marketbeat.com/instant-alerts/miniso-group-mnso-projected-to-post-quarterly-earnings-on-thursday-2025-08-14/
[4] https://ca.finance.yahoo.com/news/miniso-group-holding-ltd-mnso-070528215.html