Labubu maker Pop Mart seeks expansion to markets including Middle East amid record profit

Toy company is on track to meet its targeted revenue goal of $2.78 billion in 2025

A statue of Pop Mart's character Labubu at one of the company's stores in Beijing. Bloomberg

Toy company Pop Mart is on track to meet its targeted revenue goal of 20 billion yuan ($2.78 billion) in 2025 and hitting “30 billion this year should also be quite easy”, chief executive Wang Ning has said.

He was speaking with analysts on Monday after Pop Mart announced record half-year results on Tuesday, with the makers of the ugly-cute Labubu doll reporting net profit soared nearly 400 per cent as demand for the toys surged, particularly in higher-margin overseas markets.

Expansion in emerging markets in the Middle East, Central Europe and Central and South America was being explored.

“I think for overseas markets we're still very positive, and we also believe there's still very broad space for growth,” Mr Ning said, adding that sales from North America and Asia Pacific this year would together equal China sales in 2024.

Pop Mart executives are also optimistic about opportunities for the firm's proprietary art toys, including Labubu doll, to star in animated films and theme park attractions.

In the US, where Pop Mart currently has about 40 stores, Mr Ning said the company will begin a phase of relatively rapid store openings” over the next year or two, with 10 more US shops expected to open by the end of this year.

Pop Mart's primary business is producing and selling collectible toys, many of them developed with artists and sold in “blind boxes”, packages consumers buy for around $10 to $20 without knowing exactly which iteration of the toy is inside.

Labubu, a toothy-grinned member of “The Monsters” series of toys designed by Kasing Lung, has become a favourite of celebrities including Rihanna and David Beckham and has sold out around the world.

Until now most popular as a charm for handbags, Pop Mart says it will this week launch a mini version of Labubu that can be attached to phones.

The firm is also exploring options in content and entertainment, saying it is optimistic about opportunities for Pop Mart characters to star in animated films and theme park attractions, though these are not expected to contribute a large amount of direct revenue in the short term.

Net profit of 396.5 per cent and a 204.4 per cent jump in revenue exceeded numbers flagged in an earnings preview last month forecasting revenue growth of 200 per cent in the first half of 2025 and a recurring net profit increase of at least 350 per cent on the year.

Shares in Pop Mart have risen more than 200 per cent year-to-date, making the Chinese toy company more valuable than traditional industry giants like Barbie-maker Mattel and Hello Kitty parent company Sanrio.