Miniso Q1 profits shrink as sales remain weak

Chinese variety store chain Miniso (9896) said its first-quarter net profit shrank by 28.5 percent to 416 million yuan (HK$452 million) from one year ago, as sales in mainland China remained weak.

During the first three months of the year, revenue increased by 18.9 percent to 4.4 billion yuan year-over-year.

This comes as same-store sales in mainland China continued to decline, though the the decline narrowed “significantly to a mid-single digit,” the company said, without specifying the number.

The expenses related to the stake acquisition of Chinese supermarket chain Yonghui Superstores also hurt the net profit. Excluding the impact of the deal, Miniso’s profit for the period would have been 562.3 million yuan, the retailer said in an exchange filing.

Over the quarter, Miniso added 241 net new stores in mainland China and 617 net new stores in overseas markets, compared with one year ago.

Revenue in overseas market grew by 30.3 percent, with a year-over-year 3 percentage points climb in contribution to Minso’s total income.

And despite facing more macroeconomic uncertainties this year, Miniso believes it will stay resilient and agile in order to deliver long-term profitable growth with over ten years’ experience of globalization, said Ye Guofu, founder, chairman and chief executive of Miniso.

STAFF REPORTER