MINISO Group's 2024 Financial Results: A Year of Record Growth and Strategic Expansion

MINISO Group Holding Limited, a global value retailer known for its trendy lifestyle products, has announced its unaudited financial results for the December quarter and full year of 2024. The company reported a robust 22.8% year-over-year increase in revenue, reaching RMB16,994.0 million (US$2,328.2 million). This significant growth is a testament to MINISO's strategic initiatives and operational excellence, which have positioned the company for sustained success in the competitive retail landscape.

Revenue and Profitability Highlights

MINISO's revenue growth in 2024 was driven by a combination of factors, including an 18.5% year-on-year increase in the average store count and a modest same-store sales increase at the group level. The company's gross profit increased by 34.0% year over year to RMB7,637.1 million (US$1,046.3 million), with the gross margin hitting a record high of 44.9%. This improvement in gross margin was powered by eight consecutive quarters of growth, reflecting the company's operational efficiency and cost management strategies.

Operating profit increased by 17.6% year over year to RMB3,315.8 million (US$454.3 million), while profit for the period increased by 15.9% year over year to RMB2,635.4 million (US$361.1 million). Adjusted net profit increased by 15.4% year over year to RMB2,720.6 million (US$372.7 million), with an adjusted net margin of 16.0%. Adjusted EBITDA increased by 21.4% year over year to RMB4,334.3 million (US$593.8 million), with an adjusted EBITDA margin of 25.5%.

Operational Highlights

MINISO's operational highlights for 2024 include a total of 7,780 stores on a group level, an increase of 1,219 net new stores in the full year. The number of MINISO stores reached 7,504, with a net increase of 1,091 stores. Notably, the number of MINISO stores in overseas markets achieved a milestone of 3,000, reaching 3,118 as of December 31, 2024, with an opening of 631 net new stores in the full year. This expansion into overseas markets has been a key driver of the company's revenue growth and has contributed to the diversification of its revenue streams.

The number of TOP TOY stores, another brand under the MINISO Group, reached 276 with a record opening of 128 net new stores in the full year. TOP TOY has also begun to expand into overseas markets, aligning with the company's global expansion strategy. This strategic move has further strengthened the company's brand presence and market reach.

Financial Performance and Sustainability

MINISO's financial performance in 2024 was underpinned by its strategic initiatives, including the expansion into overseas markets and the growth of TOP TOY stores. These initiatives have not only driven revenue growth but also improved the company's gross margin and operational efficiency. The company's cash position was RMB6,698.1 million (US$917.6 million) as of December 31, 2024, with net cash from operating activities of RMB2,168.3 million (US$297.1 million). Capital expenditure was RMB762.5 million (US$104.5 million), and free cash flow was RMB1,405.8 million (US$192.6 million) for the full year.

MINISO returned RMB1,574.5 million to shareholders in 2024 through RMB1,244.3 million in cash dividends and RMB330.2 million in share repurchases. This return to shareholders reflects the company's commitment to creating value for its investors and its confidence in its financial performance and future prospects.

Conclusion

MINISO Group's 2024 financial results demonstrate the company's ability to execute its strategic initiatives effectively and achieve sustained growth. The expansion into overseas markets, the growth of TOP TOY stores, and the improvement in gross margin are key drivers of the company's financial performance. As MINISO continues to invest in strategic markets and strengthen its brand presence, it is well-positioned to capitalize on future growth opportunities and deliver value to its shareholders.