MINISO Group Holding Limited (MNSO) Q3 2025 Earnings Call Transcript

Revenue Revenue increased by 28.2% year-over-year, reaching RMB 5.8 billion. This growth was driven by strong performance across key brands and markets, including a 23% growth in the MINISO brand and a 111% growth in TOP TOY.

Gross Profit Margin (GP Margin) The GP margin remained stable at 44.7%, with gross profit reaching RMB 2.6 billion, a 27.6% increase year-over-year. This was attributed to increased contributions from international revenue and upgrades in IP strategy.

Adjusted Operating Profit Adjusted operating profit grew by 40.8% year-over-year, reaching RMB 1.02 billion. This marks the first time the adjusted operating profit crossed the RMB 1 billion threshold, supported by improved operational efficiency and revenue growth.

Adjusted Operating Margin Adjusted operating margin stood at 17.6%, showing sequential improvement from Q2. The decline in adjusted operating margin year-over-year was due to structural changes in revenue composition, with a higher proportion of international-directed operating revenue.

Same-Store Sales Growth (SSSG) Same-store sales growth reached mid-single digits overall. MINISO China achieved high single-digit growth, while international markets, including the U.S. and Canada, achieved low double-digit growth. This was driven by strategic product category focus and operational improvements.

MINISO China Revenue Revenue grew by 19.3% year-over-year, significantly outperforming China's total retail sales growth of 3.4% and online retail sales growth of 7.5%. Growth was driven by same-store sales increases and strategic operational enhancements.

MINISO International Revenue Revenue grew by 28% year-over-year, reaching RMB 2.3 billion. The U.S. market delivered over 65% revenue growth, with low double-digit same-store sales growth, supported by operational initiatives and store expansion.

TOP TOY Revenue Revenue surged by 111% year-over-year, reaching RMB 570 million. Growth was driven by enhanced product competitiveness, proprietary IP scaling, and significant gross margin optimization.

Inventory Turnover Inventory turnover for the MINISO brand was 87 days, an improvement from 104 days in Q1 and 94 days in Q2, reflecting efficient inventory management.

Cash Reserve Cash reserve stood at RMB 7.77 billion as of September 30, 2025, with net cash flow from operating activities reaching RMB 1.3 billion. This demonstrates strong cash flow management and operational efficiency.