FAST NEWS: Miniso calls latest results its ‘best quarter performance’

The latest: Novelty store operator Miniso Group (MNSO.US; 9896.HK) on Tuesday announced its net profit rose 53% year-on-year to 618 million yuan ($87 million) in the three months through September, the first quarter of its 2023/24 fiscal year.

Looking up: The company revealed that the last quarter was the best in its history, including all-time highs for revenue, profit margin and net store openings.

Take Note: The company’s Mainland China store count grew 16% during the period, higher than the 14% growth in its overseas store count. Yet the 34.7% year-on-year revenue growth for its Mainland operations trailed the 40.8% increase for its overseas markets.

Digging Deeper: Miniso operates a chain of small, attractive shops selling inexpensive goods like stationery and toys typically costing $10 or less. It has lost money for three of the past four years due to the impact of the Covid pandemic. While the company has focused on overseas markets in recent years, it has also begun rapidly expanding its domestic store network since China relaxed its Covid restrictions at the end of last year. The company had 3,802 stores in China at the end of September, and has already achieved its previous plans to add 350 to 450 stores this calendar year, a quarter ahead of schedule.

Market Reaction: Miniso’s Hong Kong shares dipped on Wednesday, closing down 8.2% at HK$49.55 by the midday break. The stock now trades near the upper end of its 52-week range.

Translation by A. Au

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