POP MART's net profit in 2023 increased by 128% year-on-year, with a 7% rise in stock price | Financial Report News
POP MART's revenue in 2023 increased by 36.5% year-on-year, with rapid growth in its emerging IP business and accelerated expansion of its overseas operations
With the continuous recovery of the economy and the accelerated release of domestic demand, the IP business has driven the continuous improvement of performance, with POP MART achieving increased revenue and profits in 2023, and its overseas performance remains outstanding.
On Wednesday, March 20, POP MART released its annual performance report for the year ending December 31, 2023. The financial report shows that POP MART's full-year revenue in 2023 was 6.301 billion yuan, a year-on-year increase of 36.5%, with annual net profit soaring by 128.8% to 1.088 billion yuan, and gross profit increasing by 45.6% year-on-year to 3.864 billion yuan.
The report stated:
"In 2023, with the effective implementation of a series of policies to expand domestic demand and promote consumption, residents' consumption demand has been accelerating, and the foundation for the recovery of the consumption market has been continuously strengthened. At the same time, residents' willingness to travel has increased, driving a positive development trend in offline commerce."
"Based on the unremitting efforts of various departments of the company, we have launched multiple new product series that are loved by consumers, achieving excellent sales performance while providing high-quality services to consumers."
After the financial report was released, POP MART's Hong Kong stocks rose by over 4%, expanding to 7% by the close, reaching 24.7 Hong Kong dollars per share.
As a key business, the continuous expansion of the IP matrix continues to show strong performance. In terms of classic IPs, SKULLPANDA, MOLLY, and DIMOO achieved revenues of 11.02 billion yuan, 1.02 billion yuan, and 730 million yuan in 2023, respectively. Among them, SKULLPANDA's year-on-year growth rate reached 20.3%, with sales of the eighth series "Temperature" reaching 310 million yuan; MOLLY's revenue grew by 27.2% year-on-year; and THE MONSTERS' revenue increased by 39.9% year-on-year.
In terms of emerging IPs, Xiao Ye IP's revenue surged by 149.5% year-on-year, and Xiao Tian Dou, PINO JELLY, and Zsiga also received high market evaluations.
In terms of channels, POP MART continues to expand online and offline channels. The number of mainland offline stores increased by 34 in 2023, with an addition of 123 robot stores; in 2023, the self-owned WeChat mini-program "POP MART Lucky Box Machine" achieved revenue of 730 million yuan, the Tmall flagship store revenue reached 320 million yuan, and the revenue on the Douyin platform surged by 431.2% year-on-year to 280 million yuan. In terms of membership, the digital scale of user base is rapidly expanding. The total number of registered members in Mainland China increased by 32.1% year-on-year to 34.354 million, with members contributing as high as 92% of sales revenue and a member repurchase rate of 50%.
Furthermore, based on local cultural characteristics, POP MART continues to deepen its presence in the Hong Kong, Macau, Taiwan, and overseas markets. The number of offline stores in these regions has reached 80, with 159 robot stores; total business revenue reached 1.06 billion RMB, with a year-on-year growth rate of 134.9%, accounting for 16.9% of total revenue. Revenue from the Shopee platform increased by 70.3%, while revenue from the official POP MART website increased by 45.9% to 39.5 million RMB