Anta Sports Products Ltd. reported revenues grew 55.5 percent in the first half against a year ago and 54.0 percent compared to the same period of 2019.

Highlights of the quarter include:

  • Sales reached RMB22.81 billion, a record high, against RMB22.81 billion a year ago.
  • By segment, sales at the flagship Anta brand were up 56.1 percent to RMB10,578 million, Fila’s sales grew 51.4 percent to RMB10,827 million, all other brands sales (Descente and Kolon Sport) surged 90.1 percent to RMB1,407 million.
  • Anta Sports’ overall gross profit margin by 6.4 percentage points to 63.2 percent. Compared to the same period of 2019, the overall gross profit margin expanded by 7.1 percentage points.
  • Anta Sports’ companywide operating profit margin improved 1.3 percentage points to 25.9 percent. By segment, operating margins declined 4.3 percentage points to 27.4 percent; at Anta, improved 4.3 percentage points to 29.0 percent at Fila, and gained 18.4 percentage points to 21.0 percent at all other brands.
  • The e-commerce business contributed 27 percent of the overall revenue of the group and increased by 61 percent as compared to the same period of 2020 in absolute amount, maintaining strong growth despite last year’s high base.
  • Without the effect of the share of loss of a joint venture, the profit attributable to equity shareholders increased by 76.1 percent year-on-year to RMB4.19 billion, with the effect of the share of loss of a joint venture, the profit attributable to equity shareholders increased by 131.6 percent year-on-year to RMB3.84 billion.
  • The group’s net cash generated from operating activities for the period increased by 163.1 percent to RMB6.31 billion and free cash inflow increased by 208 percent to RMB5.86 billion, reflecting strong cash generation. Moreover, as at June 30 2021, the Group’s total amount of cash and cash equivalents, fixed deposits held at banks with maturity over three months, and pledged deposits reached RMB22.3 billion.
  • Interim dividend grew by 185.7 percent to HK60 cents per ordinary share, representing a payout ratio of 35.4 percent of profit attributable to equity shareholders and maintaining a stable dividend payout ratio.
  • The total number of Anta stores (including Anta Kids standalone stores) in Mainland China and foreign countries stood at 9,788. The total number of Fila stores (including Fila Kids snd Fila Fusion standalone stores) in Mainland China, Hong Kong, Macao and Singapore reached 1,979. The total number of Descente stores in Mainland China and Hong Kong reached 151. The total number of Kolon Sport stores in Mainland China and Hong Kong reached 178. We deepened digitalization to drive e-commerce penetration and store efficiency optimization, continue to improve the sales network and promote the Group’s sustainable development.

Ding Shizhong, chairman and CEO of Anta Sports, said, “Anta Sports can look back on three extraordinary decades with pride. Through our ‘Single-focus, Multi-brand, Omni-channel’ strategy, we are committed to upholding our clear strategic thinking to prepare for the challenges and opportunities ahead. Our capability on new brands incubation and multi-brand management enables us to penetrate into various market segments in China effectively. With our capabilities in multi-brand management, we will continue to be ‘Consumer-centric’ and commit to achieving ‘High-quality Growth’. Looking ahead, we are committed to meet consumer’s demands and experience by accurate benchmarking and to continuously optimize operational efficiency, in order to ‘Lead to Win’ in the future.”

Anta Sports also owns Amer Sports that it acquired in 2019 in a partnership with FountainVest Partners, a Hong Kong private equity group. Amer Sports, the Finnish sportswear group, includes Salomon, Arc’teryx, Peak Performance, Atomic, Suunto and Wilson.

In a letter to shareholders, Ding Shizhong, Anta’s chairman said of Amer Sports’ performance, wrote “During the financial period, Amer Sports’ business in China grew rapidly while its overseas operations stabilized as the Pandemic situation subsided. All of Amer Sports’ brands progressed smoothly in line with its strategy. During the financial period, Amer Sports completed the sale of its fitness equipment brand Precor, which further consolidated its core brand matrix. Amer Sports continued to implement its long-term strategies to develop its footwear and apparel business, DTC model and China market. All of these key growth areas have achieved favorable results. During the financial period, although the Pandemic in foreign countries remained uncertain, the revenue of the joint venture of AS Holding grew by 36.8 percent to RMB7.99 billion while EBITDA improved a lot from a loss to a profit of RMB557 million as compared to the same period of last year.”

Photo courtesy Anta Sports