Global expansion underpins growth for China's Miniso
By Josh White
Date: Friday 21 Nov 2025
(Sharecast News) - China-based global retailer Miniso Group reported strong top-line growth for the September quarter on Friday, beating its own guidance and passing a major scale milestone, even as higher costs and financing charges weighed on headline profit.
Revenue for the three months ended 30 September rose 28.2% year on year to CNY 5.796bn, topping the upper end of the company's 25% to 28% guidance range and marking the first time quarterly sales have exceeded CNY 5bn.
Same-store gross merchandise value grew at a mid-single-digit rate across the group, with momentum improving in all operating segments.
Growth remained broad-based - revenue from the core Miniso banner increased 22.9% to CNY 5.22bn, driven by a 19.3% rise in mainland China and a 27.7% increase in overseas markets, which now accounted for 44.3% of Miniso-brand sales.
Same-store sales for the Miniso brand grew by mid-single digits, supported by high-single-digit growth in mainland China and low-single-digit growth overseas, while the Top Toy chain delivered mid-single-digit same-store growth and a 111.4% jump in revenue to CNY 574.5m.
The company said preliminary data showed same-store sales growth in mainland China accelerated to a low-teens rate in October.
Despite the rapid expansion, profitability was more mixed.
Gross profit climbed 27.6% to CNY 2.59bn, with gross margin edging down to 44.7% from 44.9% a year earlier.
Operating profit was broadly flat at CNY 846.6m, but adjusted operating profit - which strips out items including share-based payments and impacts from equity-linked securities - rose 14.8% to CNY 1.02bn, implying an adjusted operating margin of 17.6%.
Net profit fell to CNY 443.2m from CNY 648.3m, reflecting higher finance costs linked to equity-linked securities and bank loans used to acquire a stake in supermarket chain Yonghui, as well as a swing to a loss from equity-accounted investees and a higher effective tax rate.
On an adjusted basis, net profit increased 11.7% to CNY 766.8m and adjusted EBITDA rose 18.8% to CNY 1.35bn, with a margin of 23.4%.
Management highlighted that underlying performance was in line with or ahead of guidance.
"The year-over-year revenue growth on group level reached 28.2%, above our previous guidance," said chief financial officer Eason Zhang, adding that adjusted operating margin and EBITDA showed sequential improvement versus earlier quarters.
He said the company's cash generation "demonstrated our solid financial position, high-quality profitability and efficient management ability in working capital."
Net cash from operating activities reached CNY 1.3bn in the quarter, resulting in free cash flow of CNY 969.3m.
The group's cash position stood at CNY 7.77bn at the end of September, up from CNY 6.7bn at the end of 2024.
Miniso continued to expand aggressively, particularly overseas.
The total store network reached 8,138 outlets as of 30 September, crossing the 8,000-store mark and representing a net increase of 718 locations over 12 months.
The Miniso banner accounted for 7,831 stores, including 4,407 in mainland China and 3,424 overseas, while the Top Toy chain grew to 307 stores.
It said the number of directly operated stores on a group level rose to 700 from 480 a year earlier, as the company stepped up investment in key markets such as North America and Europe, contributing to higher selling and distribution expenses.
Founder, chairman and CEO Guofu Ye said the quarter marked "two significant milestones" as "quarterly revenue surpassed CNY 5bn for the first time, and Miniso Group's global store counts exceeded 8,000."
He added that the business was "steadily progressing toward our goal of achieving full-year positive SSSG for Miniso mainland China in 2025."
For the first nine months of 2025, group revenue rose 23.7% to CNY 15.19bn, while adjusted net profit increased 6.1% to CNY 2.05bn, implying an adjusted net margin of 13.5%, down from 15.7% a year earlier as expansion and financing costs outpaced sales growth.
At 0825 ET (1325 GMT), shares in Miniso Group Holding were up 0.51% in premarket trading in New York at $19.66.
Reporting by Josh White for Sharecast.com.
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