MINISO Group Holding Limited (NYSE: MNSO) reported Q1 EPS of $0.08, $0.02 better than the analyst estimate of $0.06. Revenue for the quarter came in at $340.3 million versus the consensus estimate of $344.96 million.

Financial Highlights for the Third Quarter of Fiscal Year 2021

• Revenue in the third quarter of fiscal year 2021 was RMB2,229.4 million (US$340.3 million), within the Company's guidance range of RMB2,200 million and RMB2,400 million, representing an increase of 36.5% from the same period of the prior fiscal year and a decrease of 3.0% from the previous quarter.
• Gross profit in the third quarter of fiscal year 2021 was RMB626.5 million (US$95.6 million), representing an increase of 18.5% from the same period of the prior fiscal year and a decrease of 2.5% from the previous quarter.
• Operating profit in the third quarter of fiscal year 2021 was RMB161.1 million (US$24.6 million), representing an increase of 304.4% from the same period of the prior fiscal year and an increase of 196.6% from the previous quarter.
• Profit from continuing operations in the third quarter of fiscal year 2021 was RMB115.0 million (US$17.5 million), compared to a profit of RMB170.2 million in the same period of the prior fiscal year and a profit of RMB20.8 million in the previous quarter.
• Adjusted net profit[1] in the third quarter of fiscal year 2021 was RMB149.0 million (US$22.7 million), representing an increase of 9.5% from the same period of the prior fiscal year and an increase of 77.4% from the previous quarter.

Mr. Guofu Ye, Founder, Chairman, and Chief Executive Officer of MINISO, commented, "The March quarter was MINISO's first full quarter as a public company. We have experienced accelerating recoveries in domestic operations and profitability as we continued to focus on product innovation. TOP TOY continues to achieve new milestones as we continue to sharpen our business model, products, sales channels and proprietary IPs."

Mr. Ye continued, "Looking forward in 2021, MINISO will continue to penetrate further into China's lower-tier cities by opening more stores and capturing greater market share in these high ROI regions. Meanwhile, we will continue monitoring the pandemic recovery in overseas markets carefully and rapidly adapt our expansion plan as necessary to embrace its recovery."

Mr. Saiyin Zhang, Chief Financial Officer and Executive Vice President of MINISO, commented, "We continued to achieve strong recoveries in China, as MINISO's offline store and eCommerce revenues saw year-over-year increases of 69.4% and 86.4%, respectively. We are also encouraged by our efficient working capital management, steady recovery of gross margin, and disciplined investment into new businesses, all of which have laid a solid foundation for us to deliver consistent, strong financial performance and long-term shareholder value."

Business Outlook

For the fourth quarter of fiscal year 2021 ended June 30, 2021, the Company currently estimates its revenue to be between RMB2,300 million and RMB2,500 million, representing an increase of 48.1% to 61.0% year over year. This estimate represents management's current and preliminary views on the market and operational conditions as of the date of this press release, which does not factor in any of the potential future impacts caused by the COVID-19 pandemic and is subject to change.

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