NYSE-listed lifestyle retailer MINISO posted an adjusted net profit of US$33.6 million in Q2 2022 and an adjusted net margin of 7.7%, a record high since the COVID-19 pandemic began. In announcing its unaudited financial results for the second quarter of fiscal year 2022, the Company also reported revenue of US$435.1 million, a figure which exceeded the upper end of the Company's guidance. This result represented an increase of 20.7% year-on-year and 4.5% quarter-on-quarter.
Buoyed by encouraging economic recovery in its overseas markets and strategic expansion, MINISO’s international operations rose 54.9% year-on-year to US$112.6 million in Q2 2022. As of December 31, 2021, the brand has 5,045 stores around the world, of which 1,877 are in markets outside of Mainland China.
MINISO’s international expansion has continued unabated despite the pandemic. In December 2021, MINISO set up business in Nicaragua, marking its entry to 100 markets globally. The brand’s presence also remained strong in North America. Last December, MINISO hit a milestone by opening its 5,000th global store in the north-eastern US city of Boston. Two months later, the brand welcomed its first flagship store in North America, located in New York’s SoHo district. The store is also the 110th outlet in North America to operate under the $10 N’ Under concept, where most items are priced at or below $10.
MINISO SoHo flagship store opened on February 26, 2022
“The positive trend in overseas markets has enhanced our confidence to actively expand our business post the pandemic,” said Guofu Ye, Founder and CEO of MINISO. “MINISO adopted a more positive strategy and controlled the expansion rate overseas. We also took various measures to actively help our distributors to clear their inventory and have actively expanded our online channels.”
The revenue contribution from online channels, including e-commerce and O2O (online to offline) sales, accounted for nearly 11% of total revenue. MINISO’s e-commerce business contributed around US$26.0 million in revenue whereas the O2O business contributed nearly US$20.6 million in revenue, representing an increase of 130% year-on-year.
MINISO is also well-known for its licensed collections from household names such as Disney, Marvel, Universal, NBA, and Coca-Cola. They have been a hit with consumers around the world. The brand’s line of plush toys released under its original MINI Family line has also been a commercial success.
“Consumers of co-branded and IP licensed products are less sensitive to price and have higher recognition of the IP or the brand itself,” said Mr. Ye. “Consumers choose MINISO, not simply because our products are affordable, but because they like the products themselves.”
MINISO’s sub-brand TOP TOY, formed in December 2020, also resonated with consumers who embraced the store’s extensive range of collectible figurines. The US$20.6 million revenue generated by its 89 retail stores represented a 20% increase compared to Q1 2022, accounting for nearly 5% of total revenue.
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Lifestyle product retailer MINISO (NYSE: MNSO) offers high quality household goods, cosmetics, food, and toys at affordable prices. As of December 31, 2021, MINISO has rapidly expanded to 5,045 retail outlets globally. Sleekly designed and packed with the latest must-haves, MINISO retail outlets make it possible for everyone to have a little fun all the time by enjoying life’s little surprises.