Anta’s first-half profit rises 62.6% as sales of the ‘Dragon Outfit’ and Olympic gear surge

Anta Sports Products, which supplied podium clothing for Chinese athletes at the 2024 Paris Olympics, reported a rise in interim profit as global exposure and visibility translated into increased online sales.

Net profit rose 62.6 percent to 7.7 billion yuan (US$1.08 billion) in the first six months of 2024, beating analysts’ consensus forecast compiled by S&P Capital IQ. Revenue rose to 33.7 billion yuan, up 13.8 percent from the same period last year, said the company, based in the Fujian provincial city of Jinjiang.

“The Paris 2024 Summer Olympics served as a catalyst for the sportswear sector, generating broad public enthusiasm and encouraging greater participation in sports,” Anta said in its earnings statement on Tuesday. “The combination of supportive policies, growing health awareness and increasing sports involvement is expected to maintain the solid foundations of both the Chinese economy and the sportswear industry.”

Anta’s red-and-white tracksuit, officially called the “Champions Dragon Outfit,” used embossing, patchwork and embroidery to create motifs representing the scales on the dragon’s skin. It was worn by every Chinese medalist, including swimmer Pan Zhanle, who broke the world record for the men’s 100-meter freestyle.

The medal winners from Hong Kong, such as fencers Vivian Kong and Cheung Ka-long, wore clothing from FILA, which is also owned by Anta.

Online shopping boosted Anta’s profits, with e-commerce revenues rising 25.1 percent in the period to account for 33.8 percent of total sales, compared to 30.8 percent a year earlier.

The revenue growth was driven by continued improvement in the channel mix of traditional e-commerce platforms including T-mall, JD.com, Pinduoduo and VIP.com, and the expansion of new e-commerce channels through social media, Anta said in its interim report.

Anta has declared an interim dividend of HK$1.18 per ordinary share, up 43.9 percent from last year’s payout of 82 Hong Kong cents per share.

The company also owns a diverse portfolio of global brands including FILA, Descente, Kolon Sport and Maia Active.

In a separate filing Anta made with the Hong Kong stock exchange, the company said it would spend about HK$10 billion over an 18-month period to buy back its own shares from time to time.

“With the continuous expansion of the group’s multi-brand footprint and the advancement of our ‘globalization’ strategy, our products have reached more sports enthusiasts around the world, helping Anta gain recognition among global consumers,” Anta Chairman Ding Shizhong said in the interim report. “The healthy performance of our multi-brands reinforces our confidence in both the industry’s prospects and the group’s future growth.”