Pop Mart says Labubu craze to spur 350% surge in profit

[SINGAPORE] Chinese toymaker Pop Mart International Group expects the soaring global popularity of its Labubu plush toys to drive a threefold increase in first-half revenue and an even bigger boost to profit.

Labubu – a plush, pointy-eared, serrated-tooth monster – is the centre of a global collectibles craze, with celebrities like Rihanna and BlackPink’s Lisa flaunting them. Last month, a human-sized toy sold for US$150,000 at an auction in Beijing.

The company said on Tuesday (Jul 15) that it expects at least a 350 per cent gain in profit for the six months ended Jun 30 and at least a 200 per cent increase in revenue for the period. As well as the increased recognition of the brand’s items, Pop Mart said cost optimisation and expense control had helped profitability.

What began as an obsession among young Chinese has exploded internationally, with fans lining up for hours to get their hands on the cult toys. The surging popularity of Labubus has turned Pop Mart into a more than US$40 billion company and its Hong Kong-listed shares have jumped 588 per cent over the past year.

The company’s rare mainstream breakthrough into Western markets has also handed Pop Mart one of the biggest retail profit margins for a Chinese firm with major global reach. Its gross profit margin of nearly 67 per cent last year, compares with homegoods and toy retailer Miniso Group Holding’s 45 per cent, and the roughly 20 per cent for Xiaomi and EV powerhouse BYD. BLOOMBERG