ANTA Sports Products (2020) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 rose 13.8% year-over-year to RMB33.74 billion, with profit attributable to equity shareholders (excluding Amer Sports Listing effects) up 17.0% to RMB6.16 billion and including those effects up 62.6% to RMB7.72 billion.

• Gross profit margin increased by 0.8 percentage points to 64.1%, and operating profit margin remained stable at 25.7%.

• Free cash inflow reached RMB7.62 billion, and net cash inflow from operating activities was RMB8.5 billion, reflecting strong cash generation.

• Interim dividend per share increased 43.9% to HK118 cents, with payout ratio (excluding Amer Sports gain) at 50.1%.

• The group maintained a strong financial position with robust cash reserves and announced a major share repurchase plan of up to HKD10 billion post-period.

Financial highlights

• ANTA segment revenue grew 13.5% to RMB16.08 billion, FILA up 6.8% to RMB13.06 billion, and all other brands surged 41.8% to RMB4.60 billion.

• Operating profit grew 13.6% to RMB8.66 billion, with operating margin at 25.7%.

• Net profit margin rose to 25.0% from 17.9% year-over-year.

• Basic EPS increased 58.0% to RMB2.75.

• Return on average total shareholders' equity rose to 28.6%, and return on average total assets to 16.4%.

Outlook and guidance

• Management remains cautiously optimistic about the Chinese sportswear industry, focusing on brand value, technological innovation, social responsibility, and employee dedication.

• Plans to expand global presence, especially in Southeast Asia, North America, Europe, and the Middle East, and to deepen market penetration for all brands.

• Store network targets by end-2024: ANTA 7,100–7,200, ANTA KIDS 2,800–2,900, FILA group 2,100–2,200, DESCENTE 220–230, KOLON SPORT 190–200.

• Focus on mass market positioning, performance sports breakthroughs, and brand transformation.

• Continued investment in R&D, channel transformation, and digitalization.