Average Daily Revenue of 1.6 Billion Yuan —ANTA Group Seems Unstoppable, Right?

In the recent "financial reporting", one of the most impressive reports was from a domestic enterprise, ANTA Group. Despite facing skepticism last year due to the slowing growth of its key brand Fila, ANTA Group responded with a resounding message by releasing its best-ever mid-year financial report in late August.

In the first half of 2023, ANTA Group achieved a revenue of 29.645 billion yuan, representing a year-on-year growth of 14.2%. Net profit attributable to shareholders amounted to 4.748 billion yuan, marking a year-on-year increase of 32.8%.

By brands, ANTA brand's revenue increased by 6.1% year-on-year to 14.17 billion yuan. Fila, which experienced a decline in annual revenue and operating profit last year, finally returned to growth in the first half of this year with a 13.5% year-on-year increase in revenue to 12.229 billion yuan. Other brands, including Kolon Sport and Descente, saw revenue surge by 77.6% to 3.246 billion yuan. Amer Sports, which owns Arc'teryx, Salomon, Wilson, and other brands, continued to record a 32.7% revenue increase driven by the outdoor sports craze, achieving revenue of 13.27 billion yuan.

Despite Amer Sports achieving profitability for the first time since its acquisition in 2019, AS Holding (a subsidiary of Amer Sports in which ANTA Group holds a 52.7% stake) still reported a net loss of 983 million yuan, resulting in a loss share of 516 million yuan for ANTA Group. The main reason for AS Holding's continued losses, as per the financial report, is due to the impairment of Peak Performance's goodwill and trademark, amounting to approximately 1.131 billion yuan.

The financial report also provided insights into the expansion speed of the group's brand stores. While ANTA brand and ANTA Kids stores continued to grow, stores for brands like Fila, Descente, and Kolon Sport decreased. This reflects the group's more conservative approach to opening stores for its mid-to-high-end brands.

If you use the way Anta Group is accustomed to do a horizontal comparison, its first-half total revenue of 29.645 billion yuan not only exceeded Nike's China revenue by over 2 billion yuan as of May 31 but also surpassed Li-Ning's 14.019 billion yuan and Adidas's 13.015 billion yuan in the same period.

Industry analysts have also noted that based on the current revenue level, Anta Group can earn an average of 160 million yuan a day, leaving its major domestic competitors far behind.

The next day after the financial report was released, investors were overjoyed, and Anta Group's share price also recorded an increase of 8.82%.

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