Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q3 FY24 Earnings Presentation
49 slides from Vaibhav Global's earnings presentation, December 2023
Slide 1: Vaibhav Global Limited
Vaibhav Global Limited Global Retailer on TV and Digital Platforms of Fashion Jewellery, Lifestyle Products and Accessories Results Presentation: Q3 and 9M FY24
Slide 2: Disclaimer
Disclaimer This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Vaibhav Global Limited (VGL) and its group companies’ future business developments and economic p
Slide 3: MD's Message
At the group level, we achieved a record turnover of Rs. 888 crores, reflecting growth of 23% YoY. Adjusting for recently acquired businesses, the growth would be 14%, which is in line with our stated guidance. Gross margins remain healthy at 62.4%, which is 180 basis points higher YoY. EBITDA margi
Slide 4: Table of Content
Table of Content Company overview 6 Business overview 12 An update on recent acquisitions 24 Operational & financial highlights 27 Financial performance trends 37 Annexures 42
Slide 5: Q3 FY24 Highlights
Q3 FY24 Highlights 23% YoY 30% YoY Rs. 107 crores Net Revenue Growth EBITDA Growth Net cash position Record quarterly sales of Rs. 888 crores Gross margins at 62.4% owing to better pricing and strength of vertically integrated business model Unique customer base at 5.4 lakhs Smooth assimilation of r
Slide 6: Company Overview
Company Overview
Slide 7: Guiding Pillars That Defines VGL
Guiding Pillars That Defines VGL OUR VISION OUR MISSION Be the Value Leader in Electronic To deliver one million meals per day to Retailing of Jewellery & Lifestyle children in need by ‘FY31’ through our one Products for one meal program- ‘Your Purchase Feeds…’ CORE VALUES Team-Work Honesty Passion
Slide 8: An Evolving Journey
An Evolving Journey Started Gemstones Started Jewellery Listing on stock business manufacturing for B2B exchange 1980 1996 1997 Ventured into 'Lifestyle Shifted strategy towards Products' category, name 'value conscious offering' changed to Vaibhav Global Ltd. Started own TV 2008 06-07 channels in U
Slide 9: Resulting In
RESULTING IN
Slide 10: Top decile shareholders' returns Growing Consistently
Top decile shareholders’ returns Growing Consistently Parameters CAGR Return (Rs. in crores) (25 years) (x times) Revenue (TTM basis) 18% 68 EBITDA (TTM basis) 16% 46 Profit After Tax (TTM basis) 13% 24 ~26% CAGR in market cap. since listing (~460 times), excluding dividend
Slide 11: With long term value creation
With long term value creation Cash accretive business model With strong dividend payouts 272 268 237 190 176 190 105 106 Since FY20 Rs. in crores 90 Profits After Tax 910 FY 20 FY 21 FY22 FY23 9M FY24 Dividend payout 461 Dividend payout 51% Impact of one-time (214) planned higher capex Net Profit (R
Slide 12: Business Overview
Business Overview
Slide 13: E-tailing in High Potential Markets
E-tailing in High Potential Markets (USD 20 bn) US UK GERMANY & AUSTRIA Opportunity size $14- $15 bn $2-$2.5 bn ~$3 bn ➢ Target customers: Baby Boomers (65+ years) & Gen X (45+ years) ➢ Value-buying proposition of $25-$45 ➢ Widest product range comprising ~25,000 SKUs * Statista, Marketresearch.com
Slide 14: Strategic Enablers
Strategic Enablers 1. Omni-Channel 2. Vertically Presence Integrated Supply Chain (Proprietary TV, Website, Apps, OTT, Marketplaces & Social Media) An Efficient Interplay of 4. In-House Brand 3. Wider Product And Innovation Bouquet
Slide 15: A Global Retailer on TV and Digital Platforms
1. A Global Retailer on TV and Digital Platforms PROPRIETARY ‘TV CHANNELS’ ‘DIGITAL’ PLATFORMS Proprietary Digital Platform Mobile Applications www.shoplc.com www.tjc.co.uk www.shoplc.de Third Party Marketplaces Social Retail Google Marketplace Reaching TV homes through Cable, Satellite and OTA broa
Slide 16: Vertically Integrated Supply Chain
2. Vertically Integrated Supply Chain Manufacturing in Asian countries Serving Selling in western countries Primary Retail Markets USA UK Germany India & China Resulting in industry leading gross margin of 60%+
Slide 17: Complemented by a Robust Sourcing Base
2. Complemented by a Robust Sourcing Base (US) (UK) (Germany ) Sourcing Countries ▪ India ▪ UK ▪ China ▪ Mozambique ▪ Thailand ▪ Germany ▪ Indonesia ▪ Italy ▪ Tanzania ▪ Turkey ▪ Russia ▪ Poland ▪ Morocco ▪ Singapore ▪ Myanmar ▪ UAE ▪ Madagascar ▪ Japan ▪ Bolivia ▪ Bangladesh ▪ Kenya ▪ Philippines ▪
Slide 18: Constantly Reimagining Growth Through New Designs & Products
3. Constantly Reimagining Growth Through New Designs & Products Some of the best-selling products Fashion Jewellery & Gemstones ▪ ~14K-15K new jewellery designs launched annually ▪ In-house testing lab and manufacturing Hanabi Cut Rhapsody Tanzanite Ring Ring Life-Style Products ▪ A rich product bas
Slide 19: Strengthening Own Brand Portfolio
4. Strengthening Own Brand Portfolio • Leveraging manufacturing & digital capabilities USA UK Germany • Number of brands: 31 • Current revenue mix: ~29% of B2C revenue • Target revenue mix: ~50% by FY27 of B2C revenue • Strategic brand matrix (price laddering) • Increase repeats and retention using
Slide 20: 'Innovation' Focused
4. ‘Innovation’ Focused 39,900+ 5,200+ 1,850+ Ideas Generated Ideas Approved Products sold 30,000+ 3,000+ Ideas Proposed to Orders Placed Buyers Global Search Program Crowdsourcing of Ideas A Global product innovation From employees, customers and external stakeholders Revenue contribution of and se
Slide 21: With Consistent Business Delivery
With Consistent Business Delivery Global Households Reach Repeat Purchases (in million) (no. of pieces) 135 139 127 27 27 106 23 23 FY21 FY22 FY23 Dec-23 FY21 FY22 FY23 Dec-23 Reach Repeat Purchases Note: Households numbers for past period have been reinstated due to change in methodology by the tra
Slide 22: With Consistent Business Delivery
With Consistent Business Delivery Retention (20+ Purchases)* Spend Per customer^ (in $) 89.3% 88.9% 86.6% 86.2% 705 685 701 654 FY21 FY22 FY23 Dec-23 FY21 FY22 FY23 Dec-23 Retention Rate Spend per customer * Retention data comprises Shop LC (US) and Shop TJC (UK) * Refers to retention rate of custom
Slide 23: Broad Based E-tailer
Broad Based E-tailer B2C Revenues by Format B2C Revenues by Product Category TV revenues Digital revenues Jewellery Lifestyle 27% 37% 39% 12% 27% 29% 73% 88% 73% 71% 63% 61% FY18 FY23 9M FY24 FY18 FY23 9M FY24 Jewellery : Fashion Jewellery, Gemstones and Accessories Lifestyle : Home Décor, Beauty &
Slide 24: An update on recent acquisitions
An update on recent acquisitions
Slide 25: Ideal World
Ideal world Operational update • Started live broadcasting on 29th Sep 2023 • Airing on all ~27mn households in UK • Unique customers for the quarter: ~41k Financial update • Healthier gross margins at ~60% • Profitable in Q3 on direct cost basis • To achieve profitability on full cost allocation ba
Slide 26: Mindful Souls
Mindful Souls Operational update • Successful assimilation of business with VGL Group • Q3 customers: ~55K • To leverage VGL’s supply chain from FY25 onwards Financial update • Q3 revenue at $ 4.7 million • Robust gross margins over 70% • PBT margins of 10%
Slide 27: Q3 & 9M FY24 Operational & Financial Highlights
Q3 & 9M FY24 Operational & Financial Highlights
Slide 28: Being Resilient
Being Resilient Revenue and EBITA % trends • Negative macros easing out from their peaks 18.0% YoY Revenue Growth EBITDA % 26.0% 16.0% • Consumer sentiments trending positive 22.8% 14.0% 21.0% 11.1% 12.0% • Market share gains 10.5% 10.0% 9.5% 16.0% 10.0% 8.1% 8.0% • Positively biased for future 11.0
Slide 29: An update on Germany
An update on Germany Germany venture increase in TAM (immediate addressable market) by ~20% ▪ Now clocking monthly revenue of Euro 1.9 mn+ at 62%+ gross margins ▪ Omni-channel presence (digital is now 28%) ▪ Presence in 42 million households (95% penetration) ▪ Dispatching 4k+ pieces/day Revenue and
Slide 30: Widening Digital Presence
Widening Digital Presence OTT: Huge Growth opportunity In US, OTT’s are projected to be the fastest growing video distribution medium US internet connected device installed base, 2016 to 2026 Live & Interactive Apps Shop LC (US) $3,500 OTT Revenue (USD '000) $3,000 $2,500 $2,000 $1,500 $1,000 $500 $
Slide 31: Capitalizing Cord Shifting through OTA
Capitalizing Cord Shifting through OTA Our target demographics prefer Expanding presence through OTA watching traditional Pay-TV % of population having TV (age group wise) Total OTA HH in US: 86% 23mn 80% 81% 73% 65% 66% Shop LC’s Presence 46% Low Power: ~18mn HH 34% Full Power: ~5mn HH Revenue Mix
Slide 32: Financial Highlights – Q3 FY24 Performance
Financial Highlights – Q3 FY24 Performance Fashion Jewellery, Lifestyle Products & Accessories (Rs. Cr) Total Revenue TV Revenue Digital Revenue B2B Revenue 5 years CAGR 5 years CAGR 600 5 years CAGR 55 12% 9% 550 18% 1,100 22.6% 17.4% 600 500 45 888 518 900 500 450 26.5% 441 35 724 400
Slide 33: Financial Highlights – Q3 FY24
Financial Highlights – Q3 FY24 Revenue – (Local Currency) Shop LC (US) Shop TJC (UK) 5 years CAGR 5 years CAGR 5% 7% (USD million) (GBP million) 6.8% 62.2 5.2% 58.3 20.9 19.8 48.8 15.2 Q3 FY19 Q3 FY23 Q3 FY24 Q3 FY19 Q3 FY23* Q3 FY24* 33 33 *excl. impact of Ideal World and TJC Beauty
Slide 34: Retail Performance Trends – Q3 FY24
Retail Performance Trends – Q3 FY24 TV Sales Sales Volume ('000s) Average Selling Price US$ 15% 1,701 36.4 36.7 1,600 1,483 1,100 600 100 Q3 FY23 Q3 FY24* Q3 FY23 Q3 FY24* Digital Sales Sales Volume ('000s) Average Selling Price US$ 17% 1,500 1,370 29.8 31.0 27.9 1,300 1,174 26.0 1,100 21.0 900
Slide 35: Financials – Q3 FY24 Performance
Financials – Q3 FY24 Performance Gross Profit (Rs. Cr) and Margin (%) EBITDA (Rs. Cr) and Margin( %) EBITDA Gross 60.6% 62.4% 10.5% 11.1% Margin (%) Margin (%) 26.5% 30.0% 555 99 438 76 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 PAT (Rs. Cr) and PAT Margin % EPS (Rs.) PAT Margin (%) 5.4% 5.3% 2.87 20.2%
Slide 36: EBITDA Margin Walk
EBITDA Margin Walk % to Particulars Remarks Revenue EBITDA Q3 FY23 10.5% Gross Margin 1.9% Impact of better realisation Broadcasting expenses 1.4% Pertains to recent tie-ups in Germany & US Other operational expenses 1.3% Operating leverage Foreign exch. income 1.2% Favourable currency movem
Slide 37: Financial Performance Trends
Financial Performance Trends
Slide 38: Financial Performance Trends
Financial Performance Trends Revenue Breakdown – (Rs. crore) 5 years CAGR: 11.4% 2,540 2,752 2,691 2,252 1,814 1,986 1,998 1,571 FY18 FY19 FY20 FY21 FY22 FY23 9M FY23 9M FY24 Fashion Jewelry, Accessories & Lifestyle Products (Rs. Crore) 5 years CAGR: 10.4% 5 years CAGR: 21.2% Digital Revenue B2B Rev
Slide 39: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volume ('000s) Average Selling Price US$ 7,837 38.0 36.3 39.1 6,275 6,998 32.6 5737 6,070 5,331 27.0 26.5 29.9 27.7 4,234 4,073 FY18 FY19 FY20 FY21 FY22 FY23 9M 9M FY18 FY19 FY20 FY21 FY22 FY23 9M 9M FY23 FY24 FY23 FY24 Digital Sales Sales Volume ('000s) Aver
Slide 40: Financials – Annual Financial Performance
Financials – Annual Financial Performance Shareholders’ Equity (Rs. Cr) Fixed assets including intangibles (Rs. Cr) 1,201 1,266 1,127 593 964 511 494 697 751 550 163 192 120 117 FY18 FY19 FY20 FY21 FY22 FY23 9M FY24 FY18 FY19 FY20 FY21 FY22 FY23 9M FY24 Net Debt (Rs. Cr) Net Assets* (Rs. Cr) FY18 FY
Slide 41: Financials Performance Trends & Ratios
Financials Performance Trends & Ratios Operating Cash flow (Rs. Cr) Free Cash Flow (Rs. Cr) 324 268 221 176 190 203 211 181 126 86 90 38 20 (214) FY18 FY19 FY20 FY21 FY22 FY23 9M FY18 FY19 FY20 FY21 FY22 FY23 9M FY24 FY24 ROE (TTM) ROCE (TTM) 32% 61% 25% 26% 23% 23% 46% 37% 31% 27% 11% 9% 18% 14% FY
Slide 42: Annexures
NY Annexures
Slide 43: Growth In Digital Commerce Markets
Growth In Digital Commerce Markets Broader macro challenges tapering down UK US UK 31% 15% 16% 14% 15% 15% ▪ Demand trending upwards 28% 27% 26% 28% 11% gradually 19% 26% 28% ▪ Consumers are still cautious US ▪ Positive consumer sentiments 2019 2020 2021 2022 9M 9M Q3 Q3 driving the consumption FY23
Slide 44: Robust Corporate Governance
Robust Corporate Governance Awards & Accolades 9M FY24 ~Rs. 74 crores India Risk Management Award from ICICI Lombard & CNBC-TV18 LEED’s PLATINUM & GOLD Certification Interim Dividends Dividend Payout Policy ‘Net Zero Energy Building’ certified ▪ 20-30% of consolidated free cash flows ▪ Balance betwe
Slide 45: Strong & Experienced Management
Strong & Experienced Management Mr. Sunil Agrawal Mr. Nitin Panwad Mr. Vineet Ganeriwala Mr. Srikant Jha Mr. Deepak Mishra Managing Director, VGL Group Group CFO, VGL Group President, Shop LC (US) Managing Director, Managing Director, Shop TJC (UK) Shop LC (Germany) Mr. Ankur Sogani Mr. Deepak Sharm
Slide 46: Sustainability Initiatives
Sustainability Initiatives ENERGY BIODIVERSITY WATER WASTE Solar power capacity meets 100% Saplings planted Conversion of bio- Solar power requirement at ~28,000 for developing 2 6100 KL Rainwater per annum harvested 100% degradable waste 3.23 mw manufacturing units in Jaipur Miyawaki forests (veget
Slide 47: Growth With Responsibility
Growth With Responsibility ▪ Till date Served 84 million meals to underprivileged children through flagship One for One Program, ‘Your Purchase Feeds…’ ▪ Local charity partners ✓ Akshaya Patra in India ✓ No Kid Hungry and Backpack Friends in US ✓ Magic Breakfast & Felix Project in UK ▪ Serving ~66k
Slide 48: Shareholding Pattern: As on 31st December 2023
Shareholding Pattern: As on 31st December 2023 Holding as on Key Shareholders 31st-Dec-23 Shareholding Pattern Nalanda India Fund Limited 9.33% Malabar India Fund Limited 6.44% Others 12.12% Motilal Oswal Flexi Cap Fund 4.90% Individual - >1% 3.22% AIF 0.43% Vanguard 1.45% Domestic Institutions (MF)
Slide 49: Vaibhav Global Limited
Company: Investor Relations Advisors: Vaibhav Global Limited Adfactors PR Pvt. Ltd. Nitin Panwad, Group CFO Amit Sharma Nitin.panwad@vglgroup.com Amit.Sharma@adfactorspr.com Prashant Saraswat Disha Shah Head-Investor Relations Disha.shah@adfactorspr.com VAIBHAV GLOBAL LIMITED Prashant.saraswat@vglgr