Hong Kong-based Anta Sports Products Limited reported a slight decline in profits in the six months ended June 30 as lower gross margins offset a 13.8 percent climb in sales.

Financial Highlights

  • Overall revenue hit another record high, having increased by 13.8 percent to RMB25.97 billion, beating market expectations;
  • Although direct retail business and business in first- and second-tier cities made up a dominant portion of the Group’s business and took a relatively more severe hit as a result of the pandemic-driven lockdowns in China, overall gross profit increased by 11.8 percent year-on-year to RMB16.11 billion, while overall gross profit margin fell only slightly by 1.2 percentage points to 62.0 percent. Overall profit from operations dropped by 1.9 percent to RMB5.79 billion, with overall operating profit margin falling by only 3.6 percentage points to 22.3 percent;
  • By segment, during the financial period, Anta segment’s revenue increased by 26.3 percent year-on-year to RMB13.36 billion. Fila segment’s revenue fell slightly by 0.5 percent to RMB10.78 billion. The incubation model of new brands has been further developed. All other brands’ revenue leaped by 29.9 percent to RMB1.83 billion driven by Descente and Kolon Sport;
  • Amer Sports Holding Limited (AS Holdings, Anta’s joint venture, owning the business of Amer Sports) is on track to accelerated development. During the financial period, due to the satisfactory performance of Amer Sports’ overseas business and its steady development in Mainland China, the revenue of AS Holdings grew by 21.1 percent to RMB9.67 billion. Its EBITDA grew by 28.2 percent to RMB714 million. The share of loss to the Group reduced significantly from RMB346 million in the same period of last year to RMB178 million for the financial period;
  • On a consolidated basis, without the effect of the share of loss of a joint venture, the profit attributable to equity shareholders decreased by 10.0 percent year-on-year to RMB3.77 billion for the financial period; on a consolidated basis, with the effect of the share of loss of a joint venture, the profit attributable to equity shareholders decreased by 6.6 percent year-on-year to RMB3.59 billion for the financial period;
  • Interim dividend increased by 3.3 percent year-on-year to HK62 cents per ordinary share, representing a payout ratio of 40.6 percent of profit attributable to equity shareholders;
  • During the financial period, the Group’s free cash inflow was RMB4.11 billion, reflecting a strong cash-generating capability. Moreover, as of 30 June 2022, the Group’s total amount of cash and cash equivalents, fixed deposits held at banks with maturity over three months, and pledged deposits reached RMB24.93 billion. Net cash position increased to RMB12.16 billion. The abundant fund reflected our sound risk capacity and ability to withstand high-pressure scenarios; and
  • The number of Anta stores in Mainland China and overseas stood at 6,660, while Anta Kids’ stores stood at 2,563. The total number of Fila stores, including Fila Kids and Fila Fusion standalone stores, in Mainland China, Hong Kong, Macao and Singapore reached 2,021. The total number of Descente stores in Mainland China, Hong Kong and Macao reached 182. The total number of Kolon Sport stores in Mainland China and Hong Kong stood at 153. The company continues to improve and optimize its sales network, which will help expand its brand influence and promote the sustainable development of the Group.

An Anta representative said: “Anta Group’s vision is to be the leading multi-brand sportswear group in the world. We will continue to adhere to Benchmarking with High Standard’ with proper execution to advance our strategies steadily, we are confident that we can achieve business breakthroughs and succeed in all aspects amid the volatile market environment. Anta Sports was listed in 2007 and after 15 years, the Group has evolved into a listed company with international competitiveness and modern governance standards. Over the past decades, we have remained inspired by our original aspiration in both good times and bad to make every effort to produce quality footwear and apparel.”

Photo courtesy Fila