Anta Sports, which has reached an agreement to acquire Amer Sports, reported another year of significant sales and earnings gains in 2018. Sales jumped 44.4 percent and earnings climbed 42.9 percent.

Financial Highlights

  • 44.4 percent increase in revenue to ¥24.10 billion
  • 42.9 percent increase in profit from Anta operations to ¥5.70 billion
  • 32.9 percent increase in profit attributable to equity shareholders to ¥4.10 billion
  • 30.6 percent increase in basic earnings per share to ¥152.82 cents

Stable and Healthy Profit Ratios

  • Gross profit margin increased by 3.2 percentage points to 52.6 percent
  • Operating profit margin and margin of profit attributable to equity shareholders were 23.7 percent and 17.0 percent respectively

Strong Retail Sales Performance

  • Retail sales (in terms of the retail value) of Anta branded products and other branded products (excluding brands newly added to the Group after 1 October 2017) during the period saw increases in the mid-teens and 85 percent-90 percent year-on-year respectively, which have strengthened its  leading position in the industry

2018 Dividend HK 78 cents

  • Total dividends of HK78 cents per ordinary share, representing a payout of 44.9 percent of the profit attributable to equity shareholders

Operational Highlights

Anta and Anta Kids

  • As the official sportswear partner of the Chinese Olympic Committee (COC), Anta successfully supported the Chinese national team, which saw great success at the 2018 Pyeongchang Winter Olympics.
  • In terms of branding during the year, Anta signed an endorsement contract with Gordon Hayward, adding another star to its list of NBA endorsers alongside with Klay Thompson, Rajon Rondo and Luis Scola. Meanwhile, Klay Thompson launched the 2018 Anta “Shock the Game” tour in China, which further increased awareness of Anta’s brand. In terms of products, the KT3-Rocco and SEEED series received a positive response from the market.
  • Anta Kids expanded and upgraded its “Sports Day” event series and launched its “China Soccer Coach Training” project in China.
  • As at December 31, the total number of Anta stores (including Anta Kids standalone stores) in China stood at 10,057.

Fila, Fila Kids and Fila Fusion

  • Fila had its debut appearance at the Milan Fashion Week during the year and released its 2019 Spring Summer ICONIC collection. It also continues to boost its cooperation with various renown designers, including Jason Wu, Ginny Hilfiger and Philip Lim, who are blazing trails in high-end sportswear trends.
  • Fila officially launched Fila Fusion, a new sportswear series, and signed an endorsement contract with Roy Wang. Fila has set up standalone stores and launched crossover series with a range of leading brands, such as international fashion brand AAPE by A Bathing Ape, Korean brand D-Andidote, New York streetwear brand Staple, and many more.
  • Fila Kids introduced several crossover products, including the Fila Kids X Wonnie Friends and Christmas Emoji collections, which were supported by simultaneous online and offline promotions.
  • As at December 31, the total number of Fila stores (including Fila Kids standalone stores) in China, Hong Kong, Macau and Singapore reached 1,652.

Descente, Sprandi, Kolon Sport& Kingkow

  • As newer members of the Group’s multi-brand portfolio, Descente, Sprandi, Kolon Sport and Kingkow reached new milestones during the year. Among them, Descente secured pan China movie star, director and producer, Daniel Wu, as its first Chinese endorser, expanding its focus on high-end sportswear and accessories for skiing, cross-training and running. Sprandi, a fashion and lifestyle sportswear brand, has mainly focused on fashionable athletic footwear in China, while
  • Kolon Sporthas expanded the Group’s business reach into outdoor sports through its blend of outdoor sports and lifestyle apparel together with leisurewear. In addition, Kingkow, an established kidswear brand targeting the mid- to high-end market, has helped reinforce the Group’s presence in the kidswear market.

Delivering on its Multi-brand Strategy, Improving the Value of Anta’s Products and Brands, while Optimizing Supply Chain Capabilities

  • Anta said its “Single-Focus, Multi-Brand and Omni-Channel” operation model has enabled Anta’s brands to spread across the entire market spectrum from the mass end to high-end, with products for professional sports and popular sports, high-end athleisure to urban strolls, as well as for outdoor frontiers and kidswear, catering to every consumer need.
  • When enhancing the value of its brands and products, Anta said it looks at the process from four perspectives. First is the “value of end users,” which requires the integration of online and offline services. By collecting and analyzing data from its “smart stores,”  Anta said it is able to gain valuable insights into consumer behavior, which helps it to improve and upgrade the efficiency of its store management and management process, as well as to support the customer experience. The second perspective is the “value of products”, which ensures Anta provides consumers with appropriate products that meet their demands while minimizing inventory risks. The third perspective is the “value of branding”, which incentivizes Anta to upgrade its brands so that they resonate with consumers, as well as improve brand awareness and brand influence. The fourth perspective is the “value of culture.” Anta also said it has created a corporate culture that motivates, rewards and helps employees to achieve their personal and corporate goals.

Ding Shizhong, chairman and CEO of Anta Sports, said, “The year 2018 was an important milestone for both China and Anta Sports. We will never forget our mandate to be a consumer-centric company which builds on its multi-brand strategy and innovation. We remained steadfast to our mission, committed to innovation, and upgraded our brand with a global mindset, ensuring that we can truly become the ‘Great Brand’. Being ‘customer-centric’ is at the heart of our ‘value retailing’ philosophy.”

He added, “In an investor consortium, Anta Sports has signed an official tender offer for Finnish sportswear group, Amer Sports, marking an important milestone in Anta’s internationalization process. While we have a few more steps to go before the acquisition is complete, I am optimistic about this deal because I know that we have both the capability and confidence to create value for global consumers. Looking ahead, Anta Sports will focus on advancing our brand, retail operations, management, organization, talent management and corporate culture. We will continue to strengthen our march towards becoming a world-class multi-brand sports company.”

Image courtesy Anta