Anta Sports Products, forced to cope with pandemic-related policies that negatively impacted store foot traffic and consumer sentiment across China for most of 2022, reported 8.8 percent growth last year to 53,651 million yuan renminbi (€7.58bn) on a flat net profit of RMB 8,245 million (€1.17bn) against RMB 8,219 million. The group’s overall operating profit margin fell to 20.9 percent last year from 22.3 percent in FY22, prompting the company to implement additional cost control measures. Annual gross margin dipped by 140 basis points to 60.2 percent, negatively impacted by a 7.2 percent drop for the Fila brand.
Direct-to-consumer sales rose by 60 percent year-over-year to RMB 13,687 million (€1.93bn) as the group established a hybrid operation model in 23 provinces or cities by year-end. Annual e-commerce revenues grew 17.7 percent to RMB 9,677 million (€1.37bn) as traditional wholesale sales declined nearly 40 percent year-over-year to RMB 4,359 million (€615.9m).
Meanwhile, the company, which owns a 52.7 percent stake in Amer Sports’ parent AS Holdings, sees the European group deliver an annual profit for the first time since its acquisition in 2019. Full-year Ebitda at the Salomon and Wilson parent rose 8.8 percent to RMB 2.58 billion (€365.0m) from RMB 2.32 billion as revenues increased by 21.8 percent to RMB 24.03 billion (€3.4bn) from RMB 19.72 billion.
By brand, Anta reported an RMB 5,925 million (€837.2m) operating profit on 15.5 percent revenue growth to RMB 27,723 million (€3.92bn); Fila brand operating profit slipped by 19 percent to RMB 4,301 million (€607.7m) on a 1.4 percent contraction in sales to RMB 21,523 million (€3.04bn) and all Other Brands, driven by Descente and Kolon Sport products, generated an operating profit of RMB 907 million (€128.2m) on 26 percent sales growth to RMB 4,405 million (€622.4m).
Results by product category reflect 17.4 percent growth in footwear sales to RMB 22,471 million (€3.18bn), a 3.1 percent uptick for apparel to RMB 29,523 million (€4.17bn), and a 6.4 percent improvement in year-over-year accessory sales to RMB 1,657 million (€234.1m).
Since an acceleration of slower foot traffic and negative consumer sentiment in the final period, Anta has witnessed a gradual easing of pandemic-related preventive measures and an uptick in favorable government policies to bolster domestic consumption across China. With that in mind, the group said it believes “the fundamentals of the sportswear industry remain solid, while the long-term momentum is stable and positive.”
At year-end, there were 6,924 Anta stores across Mainland China and in other markets overseas.
