ANTA Sports Products (2020) H2 2024 earnings summary

Executive summary

• Achieved record revenue of RMB 70.83 billion in 2024, up 13.6% year-over-year, with profit attributable to equity shareholders (excluding non-cash/Amer Sports gains) rising 16.5% to RMB 11.93 billion.

• Maintained high operating efficiency, expanded market share to become number one in China, and enhanced shareholder returns.

• E-commerce contributed 35.1% of total revenue, growing 21.8% year-over-year.

• Board recommended a final dividend of HKD 1.18 (118 cents) per share, with a total payout ratio of 51.4%.

• Free cash inflow was RMB 13.25 billion; net cash position at year-end was RMB 31.4 billion.

Financial highlights

• Revenue: RMB 70.83 billion (+13.6% YoY); Gross profit: RMB 44.03 billion (+12.8% YoY); Operating profit: RMB 16.60 billion (+8.0% YoY).

• Profit attributable to equity shareholders: RMB 15.60 billion (+52.4% YoY, including Amer Sports gains); excluding non-cash gains, profit was RMB 11.93 billion (+16.5% YoY).

• Gross profit margin: 62.2% (down 0.4pp); Operating profit margin: 23.4% (down 1.2pp); Net profit margin: 24.0% (up 5.9pp, including one-off gains).

• Basic EPS: RMB 5.55; Free cash flow: RMB 13.25 billion.

• RMB 2 billion in share buybacks completed; announced HKD 10 billion share repurchase plan.

Outlook and guidance

• Expects continued steady growth in the global sports industry and sportswear sector, with a focus on high-quality growth, innovation, and global expansion.

• Plans to focus on brand breakthroughs for ANTA and high-quality development for FILA in 2025.

• Targeting 6,900–7,000 ANTA stores, 2,600–2,700 ANTA KIDS, 2,100–2,200 FILA, and 260–270 DESCENTE stores by end-2025.

• Will continue to invest in digitalization, sustainability, and supply chain innovation.

• Cautiously optimistic for 2025 amid macroeconomic and consumer market uncertainties.