Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q1 FY24 Earnings Presentation
48 slides from Vaibhav Global's earnings presentation, 2023
Slide 1: Vaibhav Global Limited Results Presentation: Q1 FY24
Vaibhav Global Limited Global Retailer on TV and Digital Platforms of Fashion Jewellery, Lifestyle Products and Accessories Results Presentation: Q1 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
Sales for the quarter were Rs. 658 crores, an increase of 4.8% over same quarter of last fiscal year. Our 5 years CAGR stays healthy at 11% suggesting robustness of our business model amidst various kinds of economic cycles. In Q1 our gross margins continue to remain healthy at 61.2%. Our in-house m
Slide 4: Table of Contents
Table of Contents Company Overview 6 Business Overview 10 Operational & Financial Highlights 24 Financial Performance Trends 36 Annexures 41 5
Slide 5: Q1 FY24 Highlights
Q1 FY24 Highlights 4.8% growth in revenue amidst macro challenges Gross margins at 61.2% reflecting strength of vertically integrated business model EBITDA margin at 10% vs 7% in Q1 FY23. YoY improvement on account of better pricing and cost rebase Unique customer base at 4.4 lakhs with new registra
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: About Us
About Us Vertically-integrated Digital Retailer of fashion Strong Customer Visibility jewellery & lifestyle products ▪ TV Homes accessed (*FTE): ~ 141 mn ▪ End-to-end B2C business model households ▪ Presence through proprietary TV channels and ▪ Growing online presence digital platforms Strong Manag
Slide 9: 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 channels in 2008 06-07 U
Slide 10: Business Overview
Business Overview
Slide 11: 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-$45 ➢ Widest product range comprising ~25,000 SKUs * Statista, Marketresearch.com
Slide 12: Strategic Enablers
Strategic Enablers 1. Omni-Channel 2. Vertically Presence Integrated Supply Chain (Proprietary TV, Website, Apps, OTT, Marketplaces & Social Media) An Efficient Interplay of 4. In-House Brand 3. Wider Product And Innovation Bouquet 12
Slide 13: A Global Retailer on TV and Digital Platforms
1. A Global Retailer on TV and Digital Platforms PROPRIETARY ‘TV CHANNELS’ ‘DIGITAL’ PLATFORMS Proprietary Digital Platform Mobile Applications www.shoplc.com www.tjc.co.uk www.shoplc.de Third Party Marketplaces Social Retail Google Marketplace Reaching TV homes through Cable, Satellite and OTA broa
Slide 14: Vertically Integrated Supply Chain
2. Vertically Integrated Supply Chain Manufacturing in Asian countries Serving Selling in western countries Primary Retail Markets USA ($) UK ( ) Germany (€) India & China Resulting in industry leading gross margin of 60%+ 14
Slide 15: 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 16: 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 Ring Rhapsody Tanzanite Ring Life-Style Products ▪ A rich product bas
Slide 17: Strengthening Own Brand Portfolio
4. Strengthening Own Brand Portfolio ▪ Leveraging manufacturing & digital capabilities USA Germany UK ▪ Number of brands: 31 ▪ Current revenue mix: ~29% of B2C revenue ▪ Target revenue mix: ~50% by FY27 of B2C revenue ▪ Brand matrix (price laddering and offering) ▪ Increase repeats and retention usi
Slide 18: 'Innovation' Focused
4. ‘Innovation’ Focused 31,600+ 4,100+ 1,810+ Ideas Generated Ideas Approved Products sold 13,400+ 2,660+ 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 19: Resulting In
RESULTING IN
Slide 20: Top decile shareholders' returns Growing Consistently
Top decile shareholders’ returns Growing Consistently Parameters CAGR Return FY 98 FY 23 (Rs. in crores) (25 years) (x times) Revenue 43.6 2,690.9 17.9% 62 EBITDA 6.2 227.3 15.5% 37 Profit Before Tax 5.4 141.4 13.9% 26 Profit After Tax 5.3 105.1 12.7% 20 Net Worth 21.8 1,201.3 17.4% 55 ~23.5% CAGR i
Slide 21: With Consistent Business Delivery
With Consistent Business Delivery Global Households Reach Repeat Purchases (in million) (no. of pieces) 141 141 124 27 27 104 23 23 FY21 FY22 FY23 Jun-23 FY21 FY22 FY23 Jun-23 Reach Repeat Purchases 21
Slide 22: With Consistent Business Delivery
With Consistent Business Delivery Retention (20+ Purchases)* Spend per customer^ (in $) 89.3% 88.9% 86.6% 86.4% 705 708 685 654 FY21 FY22 FY23 Jun-23 FY21 FY22 FY23 Jun-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 Non-jewellery revenues 27% 37% 38% 12% 27% 27% 73% 88% 73% 73% 63% 62% FY18 FY23 Q1 FY24 FY18 FY23 Q1 FY24 Jewellery: Fashion Jewellery, Gemstones and Accessories Non-Jewellery: Lifest
Slide 24: Q1 FY24 Operational & Financial Highlights
Q1 FY24 Operational & Financial Highlights
Slide 25: Being Resilient
Being Resilient Revenue and EBITDA trend ▪ Growth amidst ➢ Inflationary environment 10.5% 8.1% 10.0% 7.0% ➢ Muted consumer sentiments 8.0% 4.8% 1.8% 1.1% ▪ EBITDA improved substantially owing to Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 -3.6% ➢ Efficient price management -7.9% ➢ Cost rebase YoY Revenu
Slide 26: An update on Germany
An update on Germany Germany venture increase in TAM (immediate addressable market) by ~20% ▪ Now clocking monthly revenue of Euro 1.5mn+ at 60%+ gross margins ▪ Omni-channel presence (digital is now 29%) ▪ Presence in 40 million households ▪ Dispatching 3.5k+ pieces/day ▪ Positive Customer Orientat
Slide 27: Germany: Strategic Partnership with Vodafone
Germany: Strategic Partnership with Vodafone ▪ Vodafone have one of the largest cable TV network in Germany Partnership with Vodafone leading to ▪ Added 13 million households ▪ PAN-Germany presence within 2 years of entering market ▪ To aid market leading growth Presence in 60% Now present in ~90% H
Slide 28: 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) $2,500 OTT Revenue (USD '000) $2,000 $1,500 $1,000 $500 $0 Q1 Q2 Q3 Q4
Slide 29: Capitalizing Cord Shifting through OTA
Capitalizing Cord Shifting through OTA Our target demographics prefer watching traditional Pay-TV % of population having TV OTA: Encouraging Trends Total OTA HH in US: (age group wise) 22mn 22.2 86% 80% 81% 73% 17.1 Low Power: ~17mn HH 65% 66% 13.5 High Power: ~5mn HH 46% 34% Shop LC’s Presence 17mn
Slide 30: Financial Highlights – Q1 FY24 Performance
Financial Highlights – Q1 FY24 Performance Fashion Jewellery, Lifestyle Products & Accessories (Rs. Cr) Total Revenue TV Revenue Digital Revenue B2B Revenue 5 years CAGR 5 years CAGR 5 years CAGR 5 years CAGR 11% 4.8% 10% 20% 9% 658 7.7% 32.7% 1.5% 237 628 386 392 29 220 22 Q1 FY23 Q1 FY24
Slide 31: Financial Highlights – Q1 FY24
Financial Highlights – Q1 FY24 Revenue – (Local Currency) Shop LC (US) Shop TJC (UK) 5 years CAGR 5 years CAGR 8% 8% (USD million) (GBP million) 4.9% 53.9 6.9% 51.3 17.5 16.3 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 31 31 31
Slide 32: Consistently Gaining Market Share
Consistently Gaining Market Share Market Share in US (%) Market Share in UK (%) 00.0% 92.6% 92.3% 92.6% 92.6% 92.5% 80.0% 8.0% 30. 92.0% 92.1% 90.0% 70.0% 7.0% 66.9% 67.0% 67.2% 67.2% 65.6% 64.8% 25. 80.0% 60.0% 6.0% 6.1% 6.2% 6.1% 19.7% 70.0% 18.6% 18.0% 20. 5.0% 19.6% 50.0% 17.2% 16.3% 60.0% 5.2%
Slide 33: Retail Performance Trends – Q1 FY24
Retail Performance Trends – Q1 FY24 TV Sales Sales Volume ('000s) Average Selling Price US$ 41.9 1,340 37.4 1,137 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Digital Sales Sales Volume ('000s) Average Selling Price US$ 31.0 1,169 931 24.5 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 33 33
Slide 34: Financials – Q1 FY24 Performance
Financials – Q1 FY24 Performance Gross Profit (Rs. Cr) and Margin (%) EBITDA (Rs. Cr) and Margin( %) EBITDA Gross 62.0% 61.2% 7.0% 10.0% Margin (%) Margin (%) 3.4% 49.1% 390 403 65 44 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 *PAT (Rs. Cr) and PAT Margin % EPS (Rs.) – Post Split PAT Margin (%) 3.1% 4.7% 1
Slide 35: EBITDA Margin Walk
EBITDA Margin Walk % To Particulars Revenue Remarks EBITDA Q1 FY23 7.0% Gross Margin (0.8%) Product mix Germany (0.3%) Impact pertains to currency conversion Logistics cost 2.2% Cost renegotiation and volume Investment in digital & broadcasting (0.7%) Conscious investments for future capabil
Slide 36: Financial Performance Trends
Financial Performance Trends
Slide 37: Financial Performance Trends
Financial Performance Trends Revenue Breakdown – (Rs. crore) 5 Year CAGR: 11.4% 2,540 2,752 2,691 1,814 1,986 1,571 628 658 FY18 FY19 FY20 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Fashion Jewelry, Accessories & Lifestyle Products (Rs. Crore) 5 Year CAGR: 10.4% 5 Year CAGR: 21.2% Digital Revenue B2B Revenue TV
Slide 38: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volume ('000s) Average Selling Price US$ 7,837 41.9 6,998 38.0 37.4 6,275 6,070 29.9 32.6 5737 5,331 27.0 26.5 27.7 1,340 1,137 FY18 FY19 FY20 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY18 FY19 FY20 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Digital Sales Sales Volume ('000s) Aver
Slide 39: Financials – Annual Financial Performance
Financials – Annual Financial Performance Shareholders’ Equity (Rs. Cr) Fixed assets including intangibles (Rs. Cr) 1,203 1,237 511 1,127 494 497 964 697 751 550 163 192 120 117 FY18 FY19 FY20 FY21 FY22 FY23 Q1 FY24 FY18 FY19 FY20 FY21 FY22 FY23 Q1 FY24 Net Debt (Rs. Cr) Net Assets* (Rs. Cr) FY18 FY
Slide 40: Financials Performance Trends & Ratios
Financials Performance Trends & Ratios Operating Cash flow (Rs. Cr) Free Cash Flow (Rs. Cr) 324 268 203 211 181 176 162 * 126 86 38 20 (214) 0.3 (10) FY18 FY19 FY20 FY21 FY22 FY23 Q1 FY24 FY18 FY19 FY20 FY21 FY22 FY23 Q1 FY24 ROE (TTM) ROCE (TTM) 32% 61% 25% 26% 23% 23% 46% 37% 31% 27% 9.1% 9.5% 15.
Slide 41: Annexures
Annexures
Slide 42: Growth In Digital Commerce Markets
Growth In Digital Commerce Markets Digital Industry facing temporary headwinds in the US and the UK UK UK US ▪ Cost of living crisis 30.9% 14% 14.6% 14.5% 15.10% 27.8% 26.5% 25.7% ▪ Muted consumer sentiments 11% 19.1% ▪ Resultant industry wide decline in online sales mix US ▪ Gradual improvement in
Slide 43: Robust Corporate Governance
Robust Corporate Governance Awards & Accolades Q1 FY24 ~Rs. 25 crores India Risk Management Award from ICICI Lombard & CNBC-TV18 LEED’s PLATINUM & GOLD Certification Interim Dividend Dividend Payout Policy ‘Net Zero Energy Building’ certified ▪ 20-30% of consolidated free cash flows ▪ Balance betwee
Slide 44: 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 45: 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 46: Growth With Responsibility
Growth With Responsibility ▪ Till date Served 78 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 ~48k
Slide 47: Shareholding Pattern: As on 30th June 2023
Shareholding Pattern: As on 30th June 2023 Holding as on Key Shareholders 30th-June-23 Shareholding Pattern Nalanda India Fund Limited 10.17% Motilal Oswal Flexi Cap Fund 5.49% Others 11.50% Individual - >1% 3.16% Malabar India Fund Limited 5.39% AIF 0.72% Vanguard 1.58% Domestic Institutions (MF) 5
Slide 48: Thank You
Thank You Company : Investor Relations Advisors : Vaibhav Global Limited Adfactorspr 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 prashant.saraswat@vglgroup.com www.