MINISO Group Announces March Quarter 2025 Unaudited Financial Results

MINISO Group reported an 18.9% year-over-year increase in revenue to RMB4,427.0 million, with gross margin reaching 44.2%, up 0.8 percentage points. Same-store sales decline in mainland China significantly narrowed, while adjusted EBITDA increased 7.5% to RMB1,037.3 million; however, profit for the period decreased to RMB416.5 million, impacted by expenses related to equity-linked securities and Yonghui Superstores acquisition, and adjusted net margin decreased to 13.3% from 16.6%.

Analysis

MINISO Group reported robust top-line performance for the March 2025 quarter, with revenue increasing 18.9% year-over-year to RMB4,427.0 million, fueled by a 16.5% rise in MINISO brand revenue and a significant 58.9% surge in TOP TOY brand revenue. International expansion continues to be a pivotal growth driver, evidenced by a 30.3% increase in MINISO overseas revenue, which now contributes a larger share to total revenue; notably, 70% of the 858 net new MINISO stores opened in the past year were in overseas markets, bringing the overseas total to 3,213. The group's overall store network expanded by 978 net new stores year-over-year to 7,768, including 120 net new TOP TOY stores, which have also initiated overseas expansion. Gross margin improved by 0.8 percentage points to 44.2%, primarily due to the higher revenue contribution from overseas markets and an enhanced product mix within the TOP TOY brand. Despite this, profitability metrics faced pressure: operating profit decreased to RMB709.8 million from RMB743.3 million, and reported profit for the period fell to RMB416.5 million from RMB586.0 million. This decline was largely attributed to other expenses and interest costs associated with the January 2025 issuance of equity-linked securities and bank loans for the Yonghui Superstores equity acquisition. Consequently, adjusted net profit also saw a reduction to RMB587.2 million from RMB616.9 million, leading to a contraction in the adjusted net margin to 13.3% from 16.6%. Adjusted EBITDA, however, grew 7.5% to RMB1,037.3 million, although its margin also compressed to 23.4% from 25.9%. A positive operational development was the significant narrowing of same-store sales decline in MINISO mainland China to a mid-single digit. The company maintained a strong cash position of RMB7,255.3 million as of March 31, 2025. Management acknowledged the volatile macroeconomic environment but expressed confidence in leveraging its global experience and diversified footprint for sustained profitable growth.

Key Decisions for Investors

• Investors should closely monitor the continued momentum and profitability of overseas expansion, particularly for the MINISO brand and the nascent international rollout of TOP TOY, as these are primary catalysts for revenue growth and gross margin enhancement.
• It is advisable to scrutinize the trajectory of operating expenses, especially selling and distribution costs, and assess the ongoing P&L impact of recent financing activities and acquisitions to differentiate between non-recurring charges and core operational efficiencies.
• Consider the durability of the same-store sales recovery in mainland China amidst macroeconomic uncertainties and evaluate the company's effectiveness in translating robust top-line growth and strong cash generation into improved net earnings and shareholder returns.