Friday, December 1, 2023

Anta Sports Posts Solid 2022 Revenue Growth Despite Fila Brand Dip In China | SGB Media Online

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Anta Sports Products Limited saw revenue increase 8.8 percent to RMB53.65 billion in 2022, compared to RMB49.33 billion in 2021. The Group’s operational measures and “Dynamic Management” approach were said to have been effective as profit attributable to shareholders reached RMB7.59 billion, outperforming market expectations.

Anta’s overall gross profit increased 6.3 percent to RMB32.32 billion from RMB30.40 billion in 2021, while overall gross margin decreased 140 basis points to 60.2 percent of sales versus 61.6 percent of sales in 2021. The overall operating profit maintained growth despite the headwind, up 2.2 percent to RMB11.23 billion (2021: RMB10.99 billion).

Anta’s enhancement of its brand image was said to have borne fruit, especially due to the 2022 Olympics in Beijing. 

During the financial year, Anta Brand segment revenue grew by 15.5 percent to RMB27.72 billion in 2022, compared to RMB24.01 billion in 2021, which the company said cemented its leading position in China. The gross profit margin was 53.6 percent of sales for the year, up 140 basis points from 52.2 percent in 2021, while operating profit came in at 21.4 percent of sales in 2022, flat to 2021 operating margin percentage.

Fila’s segment revenue in China fell slightly (1.4 percent) to RMB21.52 billion from RMB21.82 billion in 2021, while gross profit margin was 66.4 percent of sales, down 410 basis points versus the 2021 gross margin at 70.5 percent of sales. Operating profit margin was 20.0 percent of sales in 2022, down 450 basis points from 24.5 percent of sales in 2021.

During the financial year, All Other Brands, including Descente and Kolon Sport, capitalized on opportunities from new scenarios and enhanced core product competencies to attract target consumer groups in their respective markets, demonstrating strong momentum. Total revenue of All Other Brands jumped 26.1 percent to RMB4.41 billion versus RMB3.49 billion in 2021. The gross profit margin achieved 71.8 percent of sales but dropped 80 basis points from 71.0 percent in 2021. Operating profit margin was 20.6 percent of sales in 2022, up 220 basis points from 18.4 percent in 2021.

In addition, the company said the pandemic prompted Anta to expedite the digitalization within the Group and to continue integrating online and offline channels to cater to rapidly changing consumer habits. 

Consequently, revenue from its e-commerce business continued to increase as a percentage of its total revenue.

During the financial year, its e-commerce business contributed 34.3 percent of the Group’s overall revenue, compared to (2021: 28.6 percent in 2021, or an increase of 30.7 percent in terms of absolute amount, “achieving solid growth despite the high base of last year.”

During the financial year, the revenue of the joint venture holding Amer Sports increased by 21.8 percent to RMB24.03 billion (2021: RMB19.72 billion), setting a record high for that joint venture. EBITDA also rose 8.8 percent to RMB2.58 billion (2021: RMB2.37 billion). The joint venture has a share profit of RMB28 million to the Group for the first time since the acquisition.

On a consolidated basis, without the effect of the share of profit of a joint venture, the profit attributable to equity shareholders decreased by 3.1 percent to RMB7.56 billion in 2022 from (RMB7.80 billion in 2021. On a consolidated basis, with the effect of the share of profit of a joint venture, profit attributable to equity shareholders decreased by 1.7 percent to RMB7.59 billion versus RMB7.72 billion in 2021.

Photo courtesy Fila


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