Why Is MINISO Group Stock Jumping After Q2 Results?

MINISO Group Holding MNSO shares are skyrocketing in the premarket session on Tuesday.

The company reported second-quarter adjusted earnings per ADS of 30 cents, beating the Wall Street view of 27 cents.

Quarterly revenue of $541.038 million beat the analyst consensus of $530.30 million. Revenues soared 54% year over year and 1.3% quarter over quarter.

The second quarter’s gross profit was $233.4 million, representing an increase of 66.2% year over year. Gross margin was 43.1%, compared to 40.0% in the same period last year.

Adjusted net profit in the quarter under review is $93.0 million, representing an increase of 77.0% year over year. Adjusted net margin was 17.2%, compared to 15% in the year-ago period.

Adjusted EBITDA was $140.2 million, representing an increase of 66.8% year over year, while adjusted EBITDA margin was 25.9%, compared to 23.9% in the same period of 2022.

Number of MINISO stores reached 6,413 as of December 31, 2023, increasing by 973 stores year over year.

“Since IPO, we have returned RMB2.8 billion to shareholders,” commented Eason Zhang, CFO of MINISO. 

“Our capital allocation strategy in the future will continue to balance growth and our commitment to bringing stable and foreseeable return to shareholders,” Zhang added.

Dividend: On March 12, 2024, the company approved the distribution of a special cash dividend of $0.2900 per American Depositary Share or $ 0.0725 per ordinary share. The payment date is expected to be on April 9, 2024.

“We currently target to open 900-1,100 net new stores each year from 2024-2028 and maintain a revenue compound annual growth rate of no less than 20%,” said Guofu Ye, Founder, Chairman, and CEO of MINISO.

Price Action: MNSO shares are trading higher by 11.38% to $19.96 premarket on the last check Tuesday.