Anta Sports reported sales for the year ended December 31 vaulted 38.9 percent to RMB49.32 billion ($7.74 bn).
Gross profit increased by 47.2 percent to RMB30.40 billion, with a gross profit margin of 61.6 percent. Profit from operations increased by 20.1 percent to RMB10.99 billion, with an operating profit margin of 22.3 percent.
Breakdown by segment, during the financial year, Anta’s revenue soared 52.5 percent year-on-year to RMB24.01 billion. Fila’s revenue increased by 25.1 percent year-on-year to RMB21.82 billion. Anta Sports has owned the rights to the Fila brand in China, Hong Kong and Macao since 2009.
The businesses of Descente and Kolon Sport, and all other brands’ revenue increased by 51.1 percent to RMB3.49 billion.
AS Holding, Anta Sports’ joint venture which wholly-owns Amer Sports business, saw revenue and operating profit from the continuing operations in relation to the core brand’s business exceeded pre-pandemic levels in 2019 and hit a record high. EBITDA of AS Holding increased by 46.6 percent to RMB2.37 billion from RMB1.62 billion, while the share of loss to the Group reduced significantly to RMB81 million.
Net sales for AS Holding, which includes Salomon, Arc’teryx, Peak Performance, Atomic, and Wilson, were RMB19.7 billion in 2021 against RMB16.7 billion in 2020, up 18.1 percent. Anta said in its annual report, “A strategic growth plan was set by the investor consortium for Amer Sports to unlock the full potential of its internationally recognized sportswear and equipment brand, and the Group has a strong belief in the future success of Amer Sports.”
On a consolidated basis, without the effect of the share of loss of the joint venture, Anta Sports’ profit attributable to equity shareholders surged 35.4 percent to RMB7.80 billion. On a consolidated basis, with the effect of the share of loss of the joint venture, the profit attributable to equity shareholders surged 49.6 percent to RMB7.72 billion.
Going forward, Anta plans to capitalize on developments in China favorable to the sportswear industry. Anta said, “Factors such as more personalized consumption habits and cultural self-confidence will continue to affect the market composition across the industry, bringing opportunity for domestic Chinese brands, and as a result, more niche brands are expected to emerge.”
Anta launched a ten-year strategy, “Single Focus, Multi-Brand, Globalization” at the end of 2021. Anta said, “Catering to the diversified needs of consumers and achieving high-quality growth with an array of brands, we continue to focus on the sportswear industry and consumer value creation. We target globalization in terms of market position, brand portfolio, value chain composition and governance structure.”
For the Anta brand, a new five-year Development Strategy and “Lead to Win” acceleration plan was introduced last year. Leveraging Anta’s existing strength in the domestic market, Anta will continue to sponsor outfits for Chinese national teams, leverage global advanced sports R&D capability, target opportunities in Gen Z, and speed up DTC transformation and digitalization.
Anta plans to further invest in digitalization, focusing on upgrading its membership, member services, and the operation of different platforms, to improve online and offline retail performance and achieve diversification in sales platforms. Anta said, “Digitalization will help integrate the omni-channel inventory system, strengthen the replenishment model, strengthen the omni-channel integration of products, and improve product efficiency. The digital supply chain platform, digital logistics network of regional warehouses and cloud warehouses, and the data interoperability across the full value chain will also help the company increase the quantity and efficiency of direct distribution to our stores and empower our brands to grow and develop more effective cost management and operational efficiency.”
Anta also said it would “continue to promote sustainable development” with a focus on four areas—consumers, partners, environment, and community.
A representative of Anta Sports said in a statement: “Anta Group’s vision is to be the leading world-class, multi-brand sportswear group. We will continue to set our ‘high-standard benchmark’ and believe that with the right strategy, our goals can be achieved. By 2025, through the multi-brand strategy, Anta Group will strive to hold the No. 1 market share in China, and by 2030, strive to achieve global leadership. Regardless of how the external environment changes, our original intention will not change, we will continue to make every effort to produce quality apparel and footwear while integrating a sporting spirit to go beyond ourselves in everyday life, and become the ‘leading world-class, multi-brand sportswear group.'”
Photo courtesy Anta/Amer Sports
