ANTA Sports Products (2020) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 rose 13.8% year-over-year to RMB33.74 billion, with profit attributable to equity shareholders (excluding Amer Sports Listing effects) up 17.0% to RMB6.16 billion and including those effects up 62.6% to RMB7.72 billion.

• Gross profit margin increased by 0.8 percentage points to 64.1%, and operating profit margin remained stable at 25.7%.

• Basic EPS increased 58.0% to RMB2.75.

• Free cash inflow reached RMB7.62 billion, and net operating cash inflow was RMB8.5 billion.

• Interim dividend per share increased 43.9% to HK118 cents, with a payout ratio of 50.1% (excluding Amer Sports effects).

Financial highlights

• ANTA segment revenue grew 13.5% to RMB16.08 billion; FILA up 6.8% to RMB13.06 billion; all other brands surged 41.8% to RMB4.60 billion.

• Net profit margin rose to 25.0% from 17.9% year-over-year.

• E-commerce contributed 33.8% of total revenue, up 25.1% year-over-year.

• Average inventory turnover days improved to 114, down 10 days year-over-year.

• Return on average total shareholders' equity rose to 28.6%, and return on average total assets to 16.4%.

Outlook and guidance

• Management maintains a cautiously optimistic outlook for the Chinese sportswear industry, focusing on single-focus, multi-brand, and globalization strategies.

• Plans to expand store networks: ANTA (7,100–7,200), ANTA KIDS (2,800–2,900), FILA (2,100–2,200), DESCENTE (220–230), KOLON SPORT (190–200) by year-end 2024.

• Continued investment in R&D, channel transformation, digitalization, and global expansion, especially in Southeast Asia, North America, and Europe.

• Focus on mass market positioning, performance sports breakthroughs, and brand transformation.