A strong quarterly earnings report was the rocket fuel sending Miniso's (MNSO 0.54%) American Depositary Shares (ADSs) more than 20% higher as the trading week came to a close Friday. The Chinese toy and home goods retailer notched convincing beats on both the top and bottom lines for the period, hence the excitement. By contrast, the S&P 500 index only managed a 1.5% gain.
Not so mini these days
In its second quarter, Miniso saw its revenue surge by 23% to just under 4.97 billion yuan ($692 million), which topped even the most optimistic internal forecast. That was on the back of improvements in same-store gross merchandise value (SSSG) growth, an important metric for the company; all three of its operating segments saw growth over the previous quarter.
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Non-GAAP (adjusted) net income, meanwhile, saw a less impressive but still meaningful boost. It rose by almost 11% to nearly 692 million yuan ($96 million). That shook out to 2.24 yuan ($0.31) per ADS.
On average, analysts tracking Miniso were modeling only 4.86 billion yuan ($677 million) for revenue, and 1.75 yuan ($0.24) per ADS for adjusted bottom-line profitability.
In its earnings release, Miniso pointed to strength in its home market as a key source of growth. It quoted CEO Guofu Ye as saying that "outperformance in Miniso mainland China in such a hyper-competitive domestic physical retail environment further underscores our strong execution and resilience of our business model."
NYSE: MNSO
Key Data Points
New dividend declared
Miniso isn't keeping all of that profit for itself. The company declared a bi-annual cash dividend of almost $0.29 per ADS for holders of its U.S.-listed equity. This yields 2.2% on the company's most recent ADS closing price.
