Anta Sports Products, the official supplier of podium uniforms for Chinese athletes at the 2024 Paris Olympics, has reported a significant surge in interim profits, driven by its growing global profile and strong online sales performance.
In the first half of 2024, Anta’s net profit soared by 62.6% to 7.7 billion yuan (US$1.08 billion), surpassing analysts’ expectations compiled by S&P Capital IQ. The company’s sales also saw a notable increase, rising 13.8% year-on-year to 33.7 billion yuan, according to its earnings report released on Tuesday.
Anta attributed this growth to the heightened public enthusiasm for sports during the Paris 2024 Olympic Summer Games, which served as a catalyst for the sportswear industry. The company’s iconic red-and-white “Champions Dragon Outfit,” worn by every Chinese medallist, including world record-breaking swimmer Pan Zhanle, garnered significant attention and contributed to the brand’s success.
“The Paris 2024 Olympic Summer Games ignited widespread public enthusiasm and drove increased participation in sports,” Anta stated in its earnings report. “Supportive policies, growing health consciousness, and rising sports engagement are expected to sustain the solid fundamentals of both China’s economy and the sportswear industry.”
E-commerce played a pivotal role in Anta’s financial success, with online revenue growing by 25.1% during the period and accounting for 33.8% of overall sales. This growth was driven by a strategic enhancement in the company’s e-commerce channels, including traditional platforms like T-mall, JD.com, Pinduoduo, and VIP.com, as well as new social media e-commerce channels.
In recognition of its strong performance, Anta declared an interim dividend of HK$1.18 per share, marking a 43.9% increase from the previous year’s payout.
Founded in 1991 and listed on the Hong Kong Stock Exchange in 2007, Anta has been a key provider of kits and uniforms for the Chinese national team at numerous global sports events since 2009. The company’s diverse portfolio includes global brands such as FILA, Descente, Kolon Sport, and Maia Active, as well as ownership of Amer Sports, which houses brands like Arc’teryx, Salomon, and Wilson.
Anta’s chairman, Ding Shizhong, expressed confidence in the company’s future growth, citing the successful expansion of its multi-brand strategy and its ongoing globalisation efforts. The company also announced plans to repurchase up to HK$10 billion of its shares over the next 18 months, reflecting its strong financial position and commitment to enhancing shareholder value.
“The healthy performance of our multiple brands reinforces our confidence in both the industry’s outlook and the group’s future growth,” Ding Shizhong said in the interim report.