29 Aug 2024
Anta’s 1H24 revenue was up by 13.8% YoY to Rmb33.74bn, mainly driven by i) 13.5% YoY growth from core brand sales to Rmb14.2bn as a result online growth, product enhancement and restocking by distributors; ii) 6.8% YoY growth from FILA thanks to growth in e-commerce and higher contribution in functional and footwear products; and iii) 41.8% YoY growth from all other brands, mainly driven by the better than expected strong performance in Descente and Kolon Sport. Overall GPM was up by 0.8ppt YoY to 64.1% on the back of i) higher GPM contributed the ongoing DTC model transformation, ii) decrease in write-down of inventories from FILA; and iii) higher sales mix from all other brands which charged a higher GPM amid higher ASP. On the cost side, staff costs remained flattish at 15.5%, while A&P ratio was up by 0.4ppt YoY to 7.5% amid more marketing campaigns and continued store openings and upgrades. R&D costs also up 0.4ppt YoY to 2.7% in 1H24 with more investments during the period. The company also recorded a Rmb1.58bn gain from equity dilution under Amer Sports listing. Taking out one-off items, NP surged by 17% YoY to Rmb6.16bn, with NPM up 0.5ppt YoY to 18.3%. Interim-DPS was at HK$1.18, representing a payout ratio of 50.1% (1H23: 45.7%).