Pop Mart reports 23.8% revenue growth driven by plush toys and IP diversification

Pop Mart reported a 23.8% year-on-year increase in first-half revenue, reaching RMB 17.17 billion (approximately US$2.4 billion to $2.55 billion). The company achieved a gross margin of 69.7% and an adjusted net profit of RMB 5.16 billion.

Growth was driven by strong intellectual property (IP) performance and a surge in the plush category, which generated RMB 9.82 billion, up 60% year-on-year. While 'The Monsters' franchise, which includes the character Labubu, remains the largest IP with RMB 4.45 billion in revenue, its share of total revenue decreased from 34.7% to 26% compared to the previous year. Other significant contributors include 'Twinkle Twinkle', which saw a 580.6% revenue increase to RMB 2.65 billion, as well as Crybaby, Dimoo, SkullPanda, and Hirono, each generating over RMB 1 billion.

Internationally, Pop Mart expanded its physical footprint to 676 stores and 2,827 roboshops. The Americas saw the largest expansion with 22 net new locations. Greater China remains the primary market, accounting for RMB 12.2 billion in revenue, a 47.3% increase year-on-year.