Thursday, November 30, 2023

Anta Sports saw decline in net profit and slower growth rate

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A man walks past a store of Chinese sportswear firm Anta Sports at a shopping mall in Beijing. [Photo/Agencies]

The sportswear producer Anta Sports Products Limited has seen revenues grown 8.8 percent to 53.7 billion yuan ($7.8 billion) , and net profits down 1.7 percent to 7.6 billion yuan, according to the company”s 2022 financial report.

According to Anta group’s financial report released on March 21, the company has seen slower growth rate in terms of revenue year-on-year, from 38.9 percent in 2021 to 8.8 in 2022.

The group’s main brand Anta has recorded growth of 15.5 percent to 27.7 billion yuan, taking part of 51.7 percent of the group’s total revenue.

Under the Anta brand, revenues from its direct-to-consumer business operations have surged 60 percent to 13.7 billion yuan, contributing to nearly half of the brand’s revenue. However, Anta brand’s wholesale model business has been down 39.8 percent in revenue, accounting for only 15.7 percent of the overall revenue of Anta brand.

The rest of the 34.9 percent of the revenue of Anta brand was generated from its e-commerce operations.

The group’s previous cash cow, Fila, recorded a drop in revenue for the first time, down 1.4 percent year-on-year to 21.5 billion yuan. This slowdown has been a result of consecutive declines in its growth rate of Fila’s revenue. From 2019 to 2021, the growth rate of Fila’s revenue is 73.9 percent, 18.1 percent and 25.1 percent.

However, Anta group’s high-end brand Amer Sports reached an increase of 21.8 percent in revenue and generated profits of 28 million yuan last year.

In 2022, revenues from brands other than Anta and Fila rose 26.1 percent to 4.4 billion yuan, propelled by the group’s high-end ski brand Descent and its outdoor lifestyle brand Kolon Sport.

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