Anta First Released FILA Core Data 14 Billion 800 Million Revenue Response Short

After three years of short questioning, Anta finally released the core data of FILA for the first time after ten years of acquisition.

In mid August 26th, Anta group released its medium-term results in 2019. In the first half of 2019, the group's revenue was 14 billion 810 million yuan, an increase of 40.3% over the same period last year, increasing by 40% over the past two years.

In the second half of the year, with double 11 holdings, Anta 2019's annual revenue exceeded 30 billion yuan, almost on the nail.

The most surprising thing is the publication of FILA data. In the first half of this year, FILA achieved 6 billion 538 million revenue, up to 80%, gross profit 4 billion 673 million, gross profit margin reached 71.5%.

Anta responded to short selling with strong earnings reports, but the market showed a mild reaction. As of August 26th closing, Anta sports shares reported a decrease of 0.11% in 61.25 yuan / share, with a market value of HK $165 billion 400 million.

FILA revenue growth engine

In 2019, Anta was in turmoil.

In the half month since July 8th, muddy water has issued 5 short reports for Anta, pointing out that Anta sports counterfeit the financial data of FILA, claiming Anta will turn wholesalers into direct stores. In this regard, Anta denied it, but in the report, Anta did not make a specific explanation.

In this interim performance, Anta released the FILA's revenue data for the first time, which seems to be responding to external queries.

According to the financial report, in the first half of 2019, FILA achieved 6 billion 538 million revenue, accounting for 44.1% of Anta group's total revenue, up 10% over the same period last year. Gross margin was 4 billion 673 million, gross margin reached 71.5%.

Such a high gross profit margin is extremely rare in the clothing industry. Meanwhile, the gross profit margin of Anta's main brand is 42.5%, Lining is 49.7%, and Adidas's gross profit in fiscal 2018 is only 50.4%. Thanks to the high margin of FILA, the gross profit margin of Anta group rose by 1.8% to 56.1% during the period.

Why do we choose to publish FILA's revenue data at this time? Zheng Jie, President of Anta group, said at the interim results conference, "there is no return. FILA accounts for more than 40% of our business. We feel it is our duty to show it clearly to investors."

According to Anta's expectation, in 2020, FILA's revenue will exceed Anta's own brand for the first time and become Anta's largest growth engine.

It is also worth noting that after the rapid growth of this quarter, FILA's revenue has surpassed Lining for the first time. This year, Lining's income was 6 billion 254 million 700 thousand yuan, FILA65.37 billion yuan, and became the second major sports brand of domestic company management, close to the sum of 360 degrees and XTEP. Anta, with its two leading brands, continues to take the position of the leader of the domestic sports brand.

As for the rapid growth of FILA, Anta attributed it to three points: brand awareness and market awareness of products, strong performance of retail business, increase of physical stores and improvement of store efficiency, and development of e-commerce.

In 2009, Anta bought BELLE's trademark rights and operation rights in China from BELLE international, at a price of HK $600 million, and has embarked on the road of double brand operation since then.

The outside world has been rather bad about this business. Because of the financial crisis, around the year 2008, the global retail brands were almost at a loss. Anta and FILA were no exception. Anta, a consumer oriented brand with low and medium end brands, took over a high-end sports brand from abroad, and whether it could operate well was the suspicion of many people at that time.

After taking over FILA Greater China business, Anta quickly dispelled doubts. In 2010, Anta made a radical reform in FILA's brand positioning and development strategy.

From 2011 to 2014, FILA used 3 years to recover most of its stores from dealers and directly manage them, and control and manage the stores from terminals.

As of June 2019, including FILA KIDS and FILA FUSION independent stores, the number of stores in FILA Greater China has reached 1788, and the market share of FILA in China in 2018 reached 2.6%.

Anta's main brand can not be ignored.

The strong growth of the FILA brand has brought Anta's brilliant performance. But it is still the main brand of Anta to provide higher profits for Anta.

According to the financial report, in the first half of 2019, Anta's main brand revenue was 7 billion 590 million, and the revenue gap with other three major domestic brands increased further. In the first half of this year, Lining, XTEP and 31st degree revenue were 6 billion 255 million, 3 billion 357 million and 3 billion 267 million respectively.

Growth rate, Anta's main brand growth in the first half of 18.3%, a slight decline in the same ratio. Anta explained that this is mainly due to increased investment in technology and innovation, and strategically giving distributors rebate, encouraging distributors to upgrade the store to the nine generation store.

In the first half of, Anta launched the ninth generation store in Chongqing and Shanghai, and upgraded from brand image, store image to consumer experience.

Although the growth rate is slightly different from that of FILA, Anta's main brand is no match for making money.

The report shows that FILA's operating interest rate (equivalent to the net interest rate of A shares) is 29%, less than 32.2% of Anta's main brand. In the same period, Anta's main brand contributed 2 billion 442 million profit to the group, while FILA was 1 billion 894 million. This means that in the case of the same revenue, Anta's main brand brings more real profits to FILA.

Over the past year, Anta's main brand has improved significantly in its operating interest rate, up 5.4% from the same period last year, compared with a slight increase of 0.2% in FILA.

In response, Zheng Jie said at the mid term performance meeting, "Anta's main brand is mainly through distributors to run shops, is wholesale mode, and FILA direct camp, so gross margins are different. Although the gross profit of the wholesale mode is lower, its operating cost is relatively low. "

Over the past 2 years, Anta's main brand has been carrying out the concept of "best price performance" and doing well in sinking. However, Anta was not satisfied with it. In 2014, after working with NBA star Clay Thompson, Anta quickly opened the market in NBA and even in sports circles.

Up to now, Anta has launched 4 Thompson signature shoes and a number of designer joint canvas shoes. In July 13th, the Anta KT4- "reward" basketball shoes, which were first launched at the nine generation shop of Yu Garden in Shanghai, Anta, were swept away on the line.

Cai Zhiben, general manager of Anta basketball department, revealed that in 2018, Anta ranked first in the Chinese market with 4 million pairs of basketball shoes. The sales of KT's basketball shoes are expected to exceed 1 million pairs this year.

This year, Anta will also launch KT5 and strengthen its launch in the Chinese market.

How far is it from Nike and Adi?

In 2012, when the revenue exceeded Lining in one fell swoop, Anta sat on the top of the top sports brand in China. Since 2014, Anta has maintained double-digit growth, which is the only one in China.

Although Lining, the former boss, has gone out of the crisis, the growth rate is obviously less than that of Anta, and the 31st degree and XTEP are still stalled.

For Anta, its satisfaction is far more than domestic, but become an international sporting goods group. Nike and Adidas are the two mountains in front of Anta.

By the end of August 26th, Anta sports market capitalization was HK $165 billion 500 million, which is almost the same as lululemon, but there is still a big gap between Nike sports and ADI.

In 2018, Adidas and Nike ranked the top two in the market share of 19.5% and 19%, while Anta's main brand accounted for 8% (plus the market share of FILA should be 8.6%), and Lining accounted for 5%, according to the forward-looking Industry Research Institute.

Facing the severe competition situation, Anta has offered the strategy of "running multiple differentiated brands and expanding market share".

The main brand "Anta" is positioning the popular sports brand, serving the general public and the most basic sports enthusiasts. The price is between 299 yuan and 899 yuan, while the FILA brand aims at the high-end and the main players are differentiated.

In order to make up for the lack of its own brand, Anta has been making big acquisitions in recent years. International brands such as Desanto, Descente, Sprandi and Kolon have been Anta's income in recent years.

The most notable of these is the acquisition of Amer Sports, a sports brand management company in Finland.

Last November, Anta sports issued a statement announcing that the joint private equity fund FountainVest Partners was a consortium of sources of capital to acquire Amer Sports, a high-end sporting goods giant in Finland, with a transaction price of 40 euros / share, with a total transaction value of 4 billion 660 million euros, or about 37 billion 100 million yuan. In this earnings report, Anta also disclosed the takeover.

As a sports company with many sports brands, although Amer Sport is not widely known, there are many aspects involved in the field of professional segmentation.

Moreover, Amer is mostly a winter sports brand. If the acquisition is successful, it will enhance Anta's position and liquidity in the 2022 Beijing Winter Olympic Games and establish its own brand advantage in the field of outdoor sports.

Garment industry analyst Ma Gang said, "if the acquisition is completed and integrated successfully, Amer will become a killer of Anta's" curve "to catch up with the two giants of Adidas and Nike.

The uncertainty is that the acquisition of Amer is Anta's first truly global takeover. In the past, whether Fila or Descente, Anta has been involved in the operation of international brands through the purchase of China's sales rights, and has not yet had the experience of running international brands globally.

36 krypton got the news that Amer and Anta group still operate independently, and have made five years development plan according to seven brands. But whether Chinese consumers can really accept this brand, whether the brand and products of Amer can successfully land in China, Anta still has a long way to go.