Anta Sports Products, Ltd., which runs retail stores in China for the Anta brand, Fila, Descente, Kolon Sport, and Amer Sports, reported that first-half revenue increased 14.2 percent year-over-year to RMB 29.65 billion and increased 100.2 percent as compared with the same period of 2019, reflecting the reopening of the Chinese market.

Fila brand retail sales posted 13.5 percent year-over-year growth in the first half to RMB 12. 23 billion, representing 41.3 percent of total sales.

All other brands, including Descente and Kolon Sport but excluding Amer Sports Corp.’s businesses under Amer Sports Holding (Cayman) Ltd.’s joint venture, saw retail sales of all other branded products increase 77.6 percent to RMB 3.25 billion in the first half.

Retail sales for the Anta brand for the first half increased 6.1 percent year-over-year to RMB 14.17 billion. representing 47.8 percent of total sales. Fila brand retail sales posted positive mid-teens growth compared to the year-ago period.

The Group’s operational profit margin increased 340 basis points year-over-year to 25.7 percent of sales.

  • Fila segment operating profit margin increased 720 basis points year-over-year to 29.7 percent of sales;
  • All other brand’s operating profit margin increased by 870 basis points year-over-year to 30.3 percent; and
  • Anta segment operating profit margin decreased by 100 basis points year-over-year to 21.0 percent of sales, which was mainly attributable to an increase in operating expenses to revenue ratio as a result of the continuous DTC model transformation in Mainland China with store-level lease expenses and staff costs increased and a decrease in government grants recognized during the financial period.

Retail sales refer to the revenue, inclusive of value-added tax, if any, derived from sales to consumers transacted in brick-and-mortar stores (offline channel) and on e-commerce platforms (online channel), part of which being owned and operated by the Group and the rest being owned and operated by the Group’s distributors, franchisees and/or the distributors’ franchisees. Accordingly, retail sales do not represent the Group’s total revenue, and the Group considers the same to be a business operational indicator of the various brands of the Group.

Profit attributable to equity shareholders without the effect of share of profit or loss of a joint venture increased 39.8 percent year-over-year to RMB 5.26 billion. Profit attributable to equity shareholders with the effect of the share of profit or loss of a joint venture increased 32.3 percent year-over-year to RMB 4.75 billion in the first half.

Joint venture AS Holding’s (Amer Sports is a subsidiary of AS Holding) operational performance was said to be “continuously improving.” First half AS Holding recorded consolidated revenue of RMB 13.27 billion, increasing 37.2 percent year-over-year.

AS Holding EBITDA increased by 149.2 percent year-over-year to RMB 1.78 billion, reflecting “the healthy development and the enhancement in profitability at the operation level of the joint venture under the strategic growth plan set by the investor consortium.”

AS Holding recorded a net loss (on a consolidated basis) of RMB 983 million for the first half which was mainly attributable to certain one-off nature items of approximately RMB 985 million charging to profit or loss. In particular, due to a significant rise in the discount rate used in impairment testing and adjustment in the development priority of the brands under Amer Sports, impairments on goodwill and trademarks of approximately RMB 1.13 billion in total for Peak Performance business were recognized by AS Holding. The share of loss of the joint venture for the first half was RMB 516 million.

The Group recorded net cash inflow from operating activities amounting to RMB 10.16 billion in the first half, up 104.1 percent year-over-year. Free cash inflow was RMB 9.52 billion, increasing 131.8 percent year-over-year.

The Board declared an interim dividend of HK$ 82 cents per ordinary share for the six months ended June 30, 2023.

Photo courtesy Anta/Fila