MINISO Group Holding Ltd. ($MNSO) Stock: Plunges 17% Despite Record Revenue Growth

TLDR

$MNSO stock closed at $18.29, down 17.58% on May 23, 2025 Q1 2025 revenue jumped 90% year-over-year to RMB4.43 billion Overseas markets drove 30% growth, while China revenue rose 9% Adjusted EBITDA increased 7.5%, reaching RMB1,037.3 million Net store count hit 7,768, including expansion of TOP TOY overseas

MINISO Group Holding Ltd. ($MNSO) closed at $18.29 on May 23, 2025, sinking 17.58% despite posting record-breaking revenue growth in its Q1 2025 earnings.

MINISO Group Holding Ltd. ($MNSO) 

The company reported total revenue of RMB4.43 billion, up 90% year-over-year, and unveiled strong international momentum, yet profitability metrics revealed some pressure points.

Revenue Breakdown and International Push

MINISO’s China revenue rose to RMB2.49 billion, a 9% increase, as domestic same-store sales narrowed their prior decline to mid-single digits. Overseas markets were the real highlight, with revenue soaring 30% to RMB1.59 billion, surpassing guidance expectations. The company’s trendy lifestyle brand, TOPTOY, delivered RMB340 million in revenue, a 59% surge.

Operationally, MINISO opened 95 new overseas stores, expanding its global footprint. By March 31, 2025, the group operated 7,768 stores, up 978 year-over-year, including 7,488 MINISO locations and 280 TOPTOY stores. Notably, TOPTOY began its overseas expansion in late 2024, aligning with MINISO’s strategy to strengthen international brand presence.

Profitability and Margin Trends

Gross profit rose 21.1% to RMB1.96 billion, with gross margin reaching 44.2%, up 0.8 percentage points from last year. Adjusted EBITDA grew 7.5% year-over-year to RMB1,037.3 million, with an adjusted EBITDA margin of 23.4%, though slightly below last year’s 25.9%.

However, adjusted net profit declined to RMB587.2 million (US$80.9 million), down from RMB616.9 million a year ago, reflecting a narrowing adjusted net margin of 13.3%. This drop was partly due to higher selling and administrative expenses, which rose 45% on increased sales efforts. Financial expenses also climbed, impacted by convertible bonds and loans linked to the acquisition of Yonghui Superstores equity.

Miniso’s adjusted net profit fell 4.8% to CNY587.2 million (USD80.9 million) in the first quarter from a year ago, the Chinese lifestyle retailer said in its latest earnings report today. Revenue jumped 18.9% to CNY4.4 billion (USD610.1 million). pic.twitter.com/tuM3Wb6To7

— Yicai 第一财经 (@yicaichina) May 23, 2025

Balance Sheet and Shareholder Returns

MINISO ended the quarter with a cash position of RMB7.26 billion (US$999.8 million), improving from RMB6.7 billion at the end of 2024. Shareholder returns were robust, with RMB740 million paid in dividends and RMB260 million used for share repurchases, totaling nearly RMB987 million year-to-date.

Despite these positives, operating profit fell to RMB709.8 million from RMB743.3 million, and profit for the period slipped to RMB416.5 million from RMB586 million. Excluding certain expenses, adjusted profit would have been RMB562.3 million.

Looking Ahead

While MINISO’s revenue and global footprint continue to expand, challenges remain in improving domestic performance and managing rising expenses. The U.S. market faces tariff-related risks, prompting MINISO to adjust supply chain strategies. Investors reacted sharply, sending the stock tumbling despite strong top-line gains.

 

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