Finspot reviewed the financial data of toy stores, including three large chain shopping facilities "Super" LLC, "Miniso Georgia" LLC and "Online Mall" ("Wishlist") LLC.
Apart from toys, all three companies import and sell various household items through their own trade facilities and online stores.
„Super" and "Wishlist" import products from European countries, as well as from Turkey, China and others. "Miniso" is a franchise of the Chinese brand, which is represented by more than 5,000 stores in 100 countries.
"All three store chains are profitable, but Miniso has the highest profitability (EBITDA/operating income margin, net income margin, ROCE, etc.) mainly due to the company's high overall profit margin. In other words, "Miniso" has the highest prices in relation to the production costs.
Wishlist" is a company with the lowest profitability that can be explained by the company's relatively low price strategy.
"Super" is one of the largest chains of household goods and toys stores in Georgia which annual turnover significantly exceeds the revenues of its rivals. Super's revenues hit a record high of ₾48 million in 2022 that is 23% more than last year's turnover. In the first year of the pandemic (2020),
"Super" revenues went down by 21%, while in 2021 the company reached the pre-pandemic levels.
In 2019-2022, "Wishlist" leads in terms of revenue growth, if in 2019 the company's revenue stood at only 34% of "Miniso's" revenue, in 2022 this figure rose to 91%. In the last three years, "Wishlist" grew by 55% per year, "Miniso"- by 12%, and "Super"- by 8%.
The share of operating costs of companies in revenues is almost the same and ranges from 32% to 33%. Thus, the gross profit margin is crucial in the company’s profitability. Miniso's high gross margin was caused by the company's highest operating profit margin (20%); Wishlist's low price and gross margin strategy leads in the lowest operating profit margin (7%) among competitors.
Effective working capital management is crucial for companies, especially in terms of liquidity and cash flow management. "Super" is the most ineffective in this respect.
Amounts paid to the founders in the form of dividends in 2019-2022 cumulatively: "Super" - ₾3.0 million, "Miniso" - ₾5.5 million, "Wishlist" -₾0", the review says.
The owners of "Super" are Ivane Khazaradze - 51.0%; Eter Buachidze - 13.6%, Maurice Ruthring (Netherlands) - 12.0%, Nino Kikodze - 8.0%, Giorgi Kikodze - 8.0%, Maya Giorgobiani - 7.4%.
The owners of "Miniso" are Levan Aroshidze - 33.0%, Nana Aroshidze - 17.5%, Archil Aroshidze - 17.0%, Ibraim Shalikadze - 12.5%, Irakli Gogolishvili - 8.0%, Giorgi Chitashvili - 5.0%, Davit Shalikadze - 5.0%, Davit Andghuladze — 2.0%.
The owner of "Wishlist" is Otar Tsurtsumia (100%).