Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q1 FY25 Earnings Presentation
27 slides from Arvind Fashions's earnings presentation, Aug 1, 2024
Slide 1: Arvind Fashions Limited – Investor Presentation Intimation
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Corporate Office: Du Parc Trinity, 8th Floor, 17, M.G Road, Bangalore – 560 001 Tel: +91-80-4155 0601, Fax: 91-80-4155 0651 Website: www.arvindfashions.com August 1, 2024 To, To, BSE Limited National Stock Exchange of India Ltd. Listing Dept. / D
Slide 2: Q1 FY25 Results Presentation
Q1 FY25 RESULTS PRESENTATION Aug | 2024 Q1 FY25 RESULTS
Slide 3: Disclaimer
DISCLAIMER This document by Arvind Fashions Limited (‘the Company’) contains forward-looking statements that represent our beliefs, projections and predictions about future events or our future performance. These forward-looking statements are necessarily subjective and involve known and unknown ris
Slide 4: Agenda
AGENDA 01 02 03 Q1 Performance Highlights Q1 FY25 Results Way Forward Q1 FY25 RESULTS 3
Slide 5: Q1 FY25 Performance Highlights
Q1 FY25 PERFORMANCE HIGHLIGHTS Q1 FY25 RESULTS 4
Slide 6: FY25 Objectives – What We Have Set For Ourselves
FY25 OBJECTIVES – WHAT WE HAVE SET FOR OURSELVES Objectives • Aspiration to grow revenues by double-digit with focus on profitability Sales & Profitability • Maintain cost control focus & operating leverage to aid EBITDA & PAT margins expansion • Continued investments in advertisement to drive marke
Slide 7: Market & Economy Update
MARKET & ECONOMY UPDATE Overall market conditions remain soft; impacted by elections, peak heatwave & lack of wedding dates Early onset of EOSS and higher discounting across the industry Premiumization continues to be a differentiator Raw material costs and inflation largely remain stable Q1 FY25 RE
Slide 8: Q1 FY25 Business Highlights
Q1 FY25 BUSINESS HIGHLIGHTS QUARTERLY GROWTH DRIVERS CHANNEL-WISE GROSS EBITDA WORKING CAPITAL SALES PERFORMANCE MARGINS & PAT 10%+ sales Adjacent categories All round growth EBITDA at ₹ 123 GWC days remained growth Y-o-Y; aiding growth; across channels crores; 19%+ growth stable; inventory signific
Slide 9: Sales
ALL ROUND CHANNEL PERFORMANCE LEADING TO ROBUST SALES GROWTH Sales ( ₹ in crores) 955 • Overall revenue growth of 10%+, significant uptick compared to Q4 & FY24 levels • ~15% growth in wholesale channel, on account of seasonality alignment 867 • EBO count stood at 944 as of June’24, net sq. ft. addi
Slide 10: EBITDA, PBT and PAT
LEADING TO STRONG PROFITABILITY IMPROVEMENT EBITDA ( ₹ in crores) PBT and PAT (after minority interest) ( ₹ in crores) 123 24 14 103 1 Q1 FY24 Q1 FY25 -17 Q1 FY24 Q1 FY25 PBT PAT (After minority interest)* * For continuing business Improvement in EBITDA margins by 100 bps Y-o-Y aided by higher gross
Slide 11: Channel Mix
CHANNEL MIX Q1 FY24 Q1 FY25 31% 32% 44% 46% 23% 24% Wholesale (MBO + Dept. Stores) Retail Online & Others Q1 FY25 RESULTS 10
Slide 12: Continued Journey of Opening Marquee EBOs
CONTINUED JOURNEY OF OPENING MARQUEE EBOs Banjara Hills, Hyderabad Indiranagar, Bengaluru Q1 FY25 RESULTS 11
Slide 13: Continued Journey of Opening Marquee EBOs
CONTINUED JOURNEY OF OPENING MARQUEE EBOs Club A, Lucknow Airport Surat Q1 FY25 RESULTS 12
Slide 14: Continued Journey of Opening Marquee EBOs
CONTINUED JOURNEY OF OPENING MARQUEE EBOs Flying Machine, Mall of India Q1 FY25 RESULTS 13
Slide 15: Brand Highlights
Q1 FY25 PERFORMANCE HIGHLIGHTS BRAND HIGHLIGHTS
Slide 16: Brand Highlights
Brand Highlights • Witnessed strong growth and strengthened leadership position in casual lifestyle category across channels, resulting in brand moving towards 2,000+ Crs NSV • Premiumization continues to be key differentiator aiding strong sell-thru’s • Momentum on opening larger iconic & marquee s
Slide 17: Brand Highlights
Brand Highlights • Mega marketing event in Mumbai in June – Arrow X GQ Event with Hrithik Roshan • Lack of wedding dates in Q1, resulting in slower growth • Premiumization through ‘1851’ & Italian line continues to drive differentiation • Improved connect with younger consumers through NewYork line
Slide 18: Brand Highlights
Brand Highlights • Transformational journey continues with fresh brand identity including new logo, design and brand positioning • Positive response from various channel partners resulting in rapid expansion of distribution • Adjacent category extension through footwear to aid revenue growth Q1 FY25
Slide 19: Brand Highlights
Brand Highlights • Premiumization continues to help brand deliver superior sales growth and profitability • Continued focus on differentiated customer experience resulting in strong sell-thru’s • Brand continues to make giant strides towards achieving 1000 Crs NSV Q1 FY25 RESULTS 18
Slide 20: Brand Highlights
Brand Highlights • Premiumization trend helping brand deliver industry leading sell-thru’s and LTL growth • Market leadership in bridge to luxury segment in Jeans, Tees and Innerwear categories • Robust sell-thru’s despite challenging consumer demand scenario Q1 FY25 RESULTS 19
Slide 21: Q1 FY25 - Groupwise Performance
Q1 FY25 - GROUPWISE PERFORMANCE (₹ in crores) Sales EBITDA EBITDA % Q1 FY25 Q1 FY24 % Q1 FY25 Q1 FY24 % Q1 FY25 Q1 FY24 Growth Growth Power Brands 955 867 10.2% 123 103 19.2% 12.9% 11.9% Total 955 867 10.2% 123 103 19.2% 12.9% 11.9% EBITDA margin expansion of 100 bps with stronger cost control and g
Slide 22: Q1 FY25 Results
Q1 FY25 RESULTS Q1 FY25 RESULTS 21
Slide 23: Q1 FY25 - Performance Snapshot
Q1 FY25 - PERFORMANCE SNAPSHOT ( ₹ in crores) Q1 FY25 Q1 FY24 Revenue from Operations 955 867 Other Income 7 10 Total Income 962 876 EBITDA 123 103 PBT 24 14 Taxes 10 19 Minority Interest 13 12 PAT 1 (17) Profit/(loss) from discontinued operations 0 0 Reported PAT 1 (16) Q1 FY25 RESULTS 22
Slide 24: Efficient Working Capital Management
EFFICIENT WORKING CAPITAL MANAGEMENT ( ₹ in crores) Jun’24 Jun’23 Mar’24 Inventory 1063 1174 1068 Inventory days 91 94 94 Receivables 575 451 647 Debtor days 49 46 47 GWC 1637 1625 1715 GWC days 141 140 141 Payables 923 916 936 Creditor days 81 88 81 NWC 715 709 779 NWC days 59 52 59 Note for days c
Slide 25: Way Forward
WAY FORWARD Q1 FY25 RESULTS 24
Slide 26: Way Forward
WAY FORWARD AFL With early festival calendar, Continue execution on Focused retail network hopeful of growth acceleration to profitability improvement expansion across brands through continue (compared to FY24 through operating leverage & FOFO model levels) cost optimization etc. Decisive focus on s
Slide 27: Thank You
ALVIND £ASHIONS THANK YOU