The Group's revenue reached another record high last year. It plans to pay HK$115 per share at the end of fiscal year 2023. The regular dividend distribution ratio for the full fiscal year is 50.7% of net profit, surpassing 44.3% in 2022.
On Tuesday afternoon, March 26, Anta Sports announced its 2023 annual report.
Financial reports show that Anta Group's annual revenue reached 62.56 billion yuan last year, exceeding market expectations of 62.2 billion yuan, a year-on-year increase of 16.2%; net profit excluding profit and loss effects of joint ventures was 10.954 billion yuan, up 44.9% year on year; net profit included in joint venture profits and losses was RMB 10.236 billion, up 34.9% year on year; the company's gross margin was 62.6%, exceeding market expectations by 61.8% and 60.2% for the same period in 2022.
The company plans to pay HK$115 per share at the end of fiscal year 2023. The ordinary dividend distribution ratio for the full fiscal year is 50.7% of net profit, surpassing 44.3% in 2022.
As of press release, Anta is up more than 4%.
Main brand revenue crossed the 30 billion mark, and the total revenue of other brands increased by nearly 60%
Specifically, in 2023, Anta's revenue reached a record high, with an increase of 16.2% to RMB 62.36 billion, establishing a leading position for Chinese sports brands; overall gross margin and operating margin both recorded significant increases compared to 2022, with overall gross margin rising 2.4 percentage points to 62.6%, further improving operating efficiency, and overall operating margin rose 3.7 percentage points to 24.6%; according to comprehensive benchmarks, Anta's net profit last year, which included a sharp increase of RMB 34.9% to RMB 10.24 billion.
Looking at brands, Anta's main brand revenue was 30.306 billion yuan, up 9.3% year on year; operating profit margin was 22.2%, up 0.8 percentage points year on year, making it the first local sports brand to cross the 30 billion dollar revenue mark.
FILA brand revenue increased 16.6% year over year to 25.103 billion yuan, operating profit margin increased 7.6 percentage points to 27.6% year over year, and launched the brand's “Lighthouse Plan” to seek brand improvement. Many operating indicators surpassed business goals. E-commerce sales performed well, achieved historic breakthroughs in live streaming and social networking platforms, and achieved significant growth in professional sports and footwear sales.
The total revenue of all other brands increased sharply by 57.7% to 6.95 billion yuan, gross margin recorded 72.9%, and operating profit margin jumped 6.5 pct year over year to 27.1%, maintaining a rapid growth trend.
The revenue of the joint venture Amalfin Sports (including brands such as Archaeopteryx, Salomon, Wilson, Peak Performance and Atomic) increased 30.1% year-on-year to 31,244 billion yuan. Operational profitability increased, and EBITDA increased sharply by 45.4% to $3,745 billion.
Reduced inventory balances, financial soundness, and abundant net cash
By establishing multiple inventory operation standards to manage the entire life cycle of products from procurement to sale, Anta's average inventory turnover fell by 15 days, a drop of nearly 11%. The inventory balance was further reduced compared to the end of 2022, indicating the recovery of the retail market and the ability of Anta to degrade seasonal inventory.
In addition, thanks to the optimization of accounts receivable management and the transformation of the DTC model, Anta's average trade accounts receivable turnover last year was also 1 day lower than in 2022, and the average trade accounts payable turnover period decreased by 3 days, and the turnover ratio was at a healthy level.
In 2023, Anta Group's financial position was stable, cash production capacity was still strong, and net cash was abundant. Net operating cash inflows were recorded at RMB 19.63 billion, and free cash inflows were recorded at RMB 17.82 billion.
As of the end of the reporting period, the total amount of cash and cash equivalents held by Anta, bank term deposits with a deposit period of more than three months and secured deposits amounted to RMB 48.52 billion.
Regarding the 2023 results, Anta Group Executive Director and Co-CEO Lai Shixian said:
“The Group will unwavering in its single-focus, multi-brand, and globalization' development strategy, and continue to explore the globalization process with a unique business model of brand+retail. Multiple brands meet the multi-level and multi-scenario consumer needs of the Chinese sporting goods market. We are confident in the future development prospects of the Chinese market and the company.
As the 2024 Paris Olympics approach, Chinese athletes will once again compete on the Olympic field with their Anta coats. We will also continue to consolidate the three core competencies of 'multi-brand collaborative management capability', 'multi-brand retail operation capability' and 'global operation and resource integration capability', adhere to a long-term mission drive, focus on differentiation to create consumer value, and make steady progress towards the 'world's leading sporting goods group' to become the world's leading sporting goods group.”