15th September 2023 – (Hong Kong) The budget retailer Miniso has revealed a 155% year-on-year jump in net earnings, as Chinese consumers turn to value items amid economic slowdown. The Guangzhou-headquartered company, dual-listed in Hong Kong and the U.S., posted adjusted profit of US$252.8 million for the financial year through June.
Total revenue climbed 13.8% to US$1.5 billion, with overseas sales accounting for half the uplift. Yet domestic income rose just 2.8%, highlighting prudent spending at home. To reward faith in its outlook, Miniso will repurchase up to US$200 million shares over 12 months.
Founded a decade ago, the lifestyle goods seller established a worldwide store network through affordable design goods from electronics to gifts. Brand tie-ups include Barbie, Peanuts and Disney, appealing to cost-conscious customers. By June’s end, Miniso operated 5,791 units globally – 60% China-based, over 80% in lower-tier cities.
As China’s jobless rate hit a record and economic forecast darkened, research showed consumers hunting best bargains. With the average fast-moving consumer good price falling post-lockdowns, value retailers like Miniso catering to such demand saw rewards. It aims continued international growth against a cautious consumer backdrop at home.