Why MINISO Shares Are Trading Higher Today

MINISO Group Holding Limited MNSO reported fourth-quarter FY23 sales of $448.50 million, beating the analyst consensus of $434.37 million.

Revenue for the quarter of RMB3.25 billion improved 40.3% year over year and 10.1% quarter over quarter.

Revenue from China increased 39.4% Y/Y to RMB2.14 billion ($294.8 million).

Gross profit increased 67.9% Y/Y to RMB1.29 billion ($178.7 million). The gross margin was 39.8% versus 33.3% last year.

Operating income for the quarter was RMB690 million ($95.2 million), representing an increase of 153.6% year over year.

Adjusted EBITDA for Q4 climbed 103.8% to RMB855.4 million ($118 million), and the EBITDA margin expanded 820 basis points to 26.3%.

The number of MINISO stores increased by 592 Y/Y to 5,791 as of June 30, 2023.

MNSO reported adjusted earnings per ADS of $0.25, which beat the consensus of $0.22.

The company held $1 billion in cash and equivalents as of June 30, 2023.

On August 22, 2023, the Board approved the distribution of a final cash dividend of $0.412 per American Depositary Share (ADS) or $0.103 per ordinary share, payable as of the close of business on September 19, 2023, to the holders of ADS and ordinary shares of record as of the close of business on September 7, 2023

"In spite of the short-term headwinds and uncertainties brought by the macro environment, we remained focused on our long-term strategic goals: delivering on our globalization strategy, bolstering the strength of our product offerings and optimizing our store network," said Guofu Ye, Founder, Chairman, and CEO of MINISO.

Looking forward into the September quarter, MNSO expects sales to continue to grow strongly year-over-year, driven by better store-level performance and network expansion. Meanwhile, the company expects the margin profile to continue to optimize year-over-year.

Price Action: MNSO shares traded higher by 7.07% at $21.80 in premarket on the last check Tuesday.