Anta Sports Products, which supplied the Chinese athletes’ podium uniforms during the 2024 Paris Olympics, reported a surge in its interim profit as its global profile and exposure translated to increasing online sales.
Net profit jumped 62.6 per cent to 7.7 billion yuan (US$1.08 billion) in the first six months of 2024, beating the consensus analysts’ forecast compiled by S&P Capital IQ. Sales increased to 33.7 billion yuan, 13.8 per cent more than the same period last year, according to the company, based in the Fujian provincial city of Jinjiang.
“The Paris 2024 Olympic Summer Games served as a catalyst for the sportswear sector, igniting widespread public enthusiasm and driving increased participation in sports,” Anta said in its earnings statement on Tuesday. “The combination of supportive policies, growing health consciousness, and rising sports engagement is expected to sustain the solid fundamentals of both China’s economy and sportswear industry.”
Anta’s red-and-white tracksuit, officially named the “Champions Dragon Outfit”, used embossing, patchwork and embroidery to create motifs to represent the scales on the dragon’s skin. It was worn by every Chinese medallist, including swimmer Pan Zhanle, who broke the world record for the men’s 100 metres freestyle event.
Hong Kong’s medallists such as fencers Vivian Kong and Cheung Ka-long wore FILA apparel, which is also owned by Anta.
Online shopping boosted Anta’s earnings, as revenue from e-commerce rose 25.1 per cent during the period and contributed to 33.8 per cent of overall sales, compared with 30.8 per cent last year.
The revenue growth was attributable to continuous enhancement in channel mix of the traditional e-commerce platforms, including T-mall, JD.com, Pinduoduo and VIP.com, and expansion of new social media e-commerce channels, Anta said in its interim report.
Anta declared an interim dividend of HK$1.18 per ordinary share, an increase of 43.9 per cent from last year’s payout of 82 Hong Kong cents per share.
Anta was founded in 1991 and listed on the Hong Kong stock exchange in 2007. It has provided kits and uniforms for the Chinese national team at scores of global sports events since 2009. Eileen Gu, the free-skiing gold medallist during the 2022 Beijing Winter Olympics, was a brand ambassador for Anta.
The company also owns a diverse portfolio of global brands including FILA, Descente, Kolon Sport and Maia Active.
Anta is also the largest shareholder of Amer Sports, which owns global sports brands including Arc’teryx, Salomon, Wilson. The Finland-based company listed on the New York Stock Exchange in February this year.
In a separate filing to the Hong Kong stock exchange, Anta said it would spend up to HK$10 billion to repurchase its shares from time to time for a period of 18 months.
“With the ongoing expansion of the group’s multi-brand footprint and the advancement of our ‘globalisation’ strategy, our products have reached more sports enthusiasts around the world, gaining recognition for Anta among global consumers,” Anta’s chairman Ding Shizhong said in the interim report. “The healthy performance of our multiple brands reinforces our confidence in both the industry’s outlook and the group’s future growth.”
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