Anta's operating profit margin dips to 23pc amid investment boost

Shares of Anta Sports Products (2020) once declined by 7.4 percent after the sportswear maker announced a decreased operating profit margin in two of its core brands.

Its overall operating profit margin declined by 1.2 percentage points to 23.4 percent, dragged down by continued increase in investment across branding, channels, and product research and development, the company said in a filing on Wednesday.

The Anta segment’s operating profit margin dipped by 1.2 percentage points to 21.0 percent, while that of the FILA segment also dropped 2.3 percentage points to 25.3 percent.

The company said its 2024 net profit jumped more than 52 percent to nearly 15.6 billion yuan (HK$16.77 billion), boosted by its growing e-commerce business.

Net profit last year, excluding the non-cash accounting gain from equity dilution under the Amer Sports listing and placing, increased by 16.5 percent to 11.93 billion.

The sportswear maker proposed a final dividend of 118 HK cents, up 2.6 percent year-on-year, while the full-year payout stood at 236 HK cents, up nearly 20 percent.

Revenue increased by 14 percent to 70.83 billion yuan, exceeding the 70 billion-yuan mark for the first time.

Anta's business turnover climbed 10.61 percent to 33.52 billion yuan, while the revenue from the Fila segment rose 6.07 percent to 26.63 billion yuan.

Its e-commerce business contributed 35.1 percent of the total last year whereas it made a 32.8 percent contribution in the previous year, the company said, adding that sales from its e-commerce platform increased by 21.8 percent from 2023.

Anta said its online business has become a main driving force amid a challenging offline market.

The company's overall gross profit margin edged down by 0.4 percent to 62.2 percent.

Net cash inflow from operating activities amounted to 16.74 billion yuan while free cash inflow was 13.25 billion yuan.

By the end of 2024, the total number of Anta stores reached 7,135 in China and overseas, while the total number of Fila stores (including Fila Kids and Fila Fusion) in China and Singapore hit 2,060.

STAFF REPORTER