MINISO Group (MNSO) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 revenue of RMB 16,994 million, up 22.8% year-over-year, with global store count reaching 7,780 and a net increase of 1,290 stores, surpassing targets in China, overseas, and TOP TOY segments.

• Overseas revenue surged 41.9% to RMB 6,675 million, now accounting for nearly 40% of total revenue, with overseas MINISO stores surpassing 3,000.

• Gross profit rose 34.0% to RMB 7,637 million, with gross margin at a record 44.9%, up 3.7 percentage points from 2023.

• Continued focus on IP-driven product innovation, brand upgrading, and interest-based consumption strategies, with a five-year plan targeting a revenue CAGR of at least 20% through 2028.

• Returned RMB 1,574.5 million to shareholders via dividends and share repurchases in 2024.

Financial highlights

• Total revenue for 2024 reached RMB 16,994 million, up 22.8% year-over-year; gross profit was RMB 7,637 million (+34.0% YoY); adjusted net profit was RMB 2,721 million (+15.4% YoY), with a margin of 16%.

• Adjusted EBITDA grew 21% to RMB 4,334.3 million, with a margin of 25.5%.

• Gross profit margin improved by 3.7 percentage points to 44.9%, marking eight consecutive quarters of improvement.

• Sales and administrative expenses rose 52%, mainly due to overseas expansion, with expense ratio at 26% of revenue.

• Cash position at year-end was RMB 6,698 million.

Outlook and guidance

• Plans to double global store count by 2028 compared to 2023, with a revenue CAGR target of at least 20% from 2024-2028.

• 2025 new store additions expected to be slightly less than 2024, with focus on quality over quantity, especially in key overseas markets.

• Management expects top-line acceleration in 2025, prioritizing same-store sales growth and improved store economics.

• Expects triple-digit revenue growth from directly operated stores in 2025, with long-term operating margin target of 20%.

• Targeting over 50% of sales from IP products by 2028.