Image Source: Visual China

BEIJING, May 27 (TMTPOST) — Chinese low-cost retailer and variety store chain Miniso shut down over 300 shops in March, losing around 300 million yuan in transactions, the company’s Q3 2022 earnings report shows.

The company brought in revenues of 2.341 billion yuan in Q3 ending March 31, 2022, registering year-on-year growth of 5%. The adjusted net profit was 111 million yuan, down 25.5% year-on-year from last year’s 149 million yuan.

Miniso revealed its operation status in the earnings report. The company shut down over 300 outlets in March due to the impact of Covid-19 resurgence in China, losing around 300 million yuan in transaction volume. The company’s business in China was growing slowly while its overseas business made more contributions. Miniso’s toy business Top Toy has been enjoying fast growth.

Miniso’s revenues mainly come from its business in China and overseas business. The company’s overseas business does not account for a large proportion of the total revenues but has been growing fast.

In Q3 2022, Miniso’s business in China brought in 1.823 billion yuan, accounting for 77.87% of the total revenues and registering year-on-year growth of 2%. The company’s overseas business generated revenues of 518 million yuan, accounting for 22.13% of the total revenues. However, the company’s overseas business enjoyed growth of 17%.

The revival of Miniso’s overseas business also helped increase the company’s gross margin. The quarterly earnings report shows that Miniso’s overseas business enjoyed a gross margin higher than that of its business in China.

In 2021, Miniso’s gross margin slumped to 26.8%. In Q3 2022, the company’s gross margin was 30.2%, up 2.1 percent from the 28.1% in the same period last year.

However, Miniso still notes in the earnings report that the Covid-19 pandemic is and will continue to impact the company’s overseas and domestic business.