MINISO Group (MNSO) Q3 2022 Earnings Call Transcript

For the period ending March 31, 2022

May 26, 2022 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by, and welcome to MINISO Group Holding Limited Earnings Conference Call for the Third Quarter of Fiscal Year 2022 that ended March 31, 2022. At this time, all participants are in a listen-only mode. After the management's prepared remarks, we will conduct a question-and-answer session. Please note this event is being recorded.

Now I'd like to hand the conference over to your host speaker today, Mr. Eason Zhang, Director of Capital Markets. Please go ahead, Eason.

Eason Zhang

Thank you. Hello, everyone, and thank you all for joining us. We have announced our quarterly financial results earlier today. The earnings release is now available on our Investor Relations website at ir.miniso.com. Joining us today are our Founder and CEO, Mr. Guofu Ye; and our CFO, Mr. Saiyin Zhang.

Before continue, I'd like to refer you to the Safe Harbor statement in our earnings press release, which also applies to this call as we will be making forward-looking statements. Please also note that we will discuss non-IFRS measures today, which we have explained and reconciled to the most comparable measures reported under the International Financial Reporting Standards in company’s earnings release and filings with the SEC.

With that, I will now turn the call over to Mr. Ye. Please go ahead.

Guofu Ye

[Foreign Language] Thank you. Hello, everyone, and welcome to MINISO Group's March Quarter 2022 earnings conference call. In March quarter, the pandemic once again gripped China with major cities, including Shenzhen and Shanghai, consecutively adopting strict lockdown control measures since February.

The domestic retail industry was challenged and stroke by the most stringent restrictive measures taken by local governments since 2020. According to our estimates, nationwide footprints to our MINISO stores decreased by about 2%, a 14% and 34% on a year-over-year basis from January to March, respectively, due to the strict control measures by local governments.

Despite the ongoing challenges of the pandemic, we delivered another solid quarter with revenue reaching RMB2.34 billion, up 5% year-over-year. TOP TOY's revenue increased by nearly four times year-over-year, and MINISO's offline business delivered positive year-over-year growth, which again demonstrated the resilience of our business model.

[Foreign Language] So as we have emphasized in our earnings conference call over the past few quarters, the pandemic will weigh on consumer demands and thus, our near-term results. However, our business model has demonstrated its great resilience and flexibility on the extreme market environment over the past two years, according to a report from Frost & Sullivan, MINISO's leadership position has been further consolidated. Our market share in global branded variety retail market has increased from 5.2% in 2019 to 6.7% in 2021. During the same time, our market share in China has also increased from 10.9% to 11.4%.