Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q3 FY19 Earnings Presentation
21 slides from Arvind Fashions's earnings presentation, February 2019
Slide 1: Arvind Fashions Limited Q3 FY19 Performance
Arvind Fashions Limited Q3 FY19 Performance Feb 2019 0
Slide 2: Safe harbor statement
Safe harbor statement Certain statements contained in this document may be statements of future expectations and other forward looking statements that are based on management’s current view and assumptions and involve known and unknown risks and uncertainties that could cause actual results, perform
Slide 3: Market update
• Festival demand was robust leading to improved LTL performance • Post festival decline in sales resulted in early EOSS in the market • Change in FDI guidelines in Dec 2018, for the Market update e-commerce players following marketplace models (such as amazon & Flipkart), likely to impact discounts
Slide 4: Agenda
Q3 and YTD FY19 highlights Key initiatives in Q3 Agenda • Distribution footprint expansion • High impact marketing Q3 FY19 Financials snapshot 3
Slide 5: Q3 FY19 highlights
Q3 FY19 highlights Strong financial High impact Omni-channel performance marketing • 24% sales growth • Continued investment in high • Strengthening capabilities across impact campaigns and CRM own online, in-store save the sales • 19% growth in EBITDA activities to strengthen consumer & marketplace
Slide 6: Q3 FY19 performance: 24% sales growth, 19% EBITDA growth
Q3 FY19 performance: 24% sales growth, 19% EBITDA growth Sales (Rs Cr.) EBITDA (Rs Cr.) +24% +19% 1,185 82 953 69 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 7.2% 6.9% Reported Reported 1,074 1,259 +17% 6.4% 6.5% revenue EBITDA% 5
Slide 7: YTD FY19 performance: 19% sales growth, 30% EBITDA growth
YTD FY19 performance: 19% sales growth, 30% EBITDA growth Sales (Rs Cr.) EBITDA (Rs Cr.) +19% +30% 3,280 201 2,745 154 YTD FY18 YTD FY19 YTD FY18 YTD FY19 5.6% 6.1% Reported Reported 3,068 3,475 +13% 5.0% 5.8% revenue EBITDA% 6
Slide 8: Q3 FY19 performance highlights brand group wise
Q3 FY19 performance highlights brand group wise Strong performance Strong growth of by Power Brands Specialty Retail • Sales growth 28% • Sales growth 28% • EBITDA 11.9%, growth of 32% • EBITDA 1.5% • LTL 4.0% • LTL 9.0% • Significant additional marketing investments in Unlimited Positive EBITDA for
Slide 9: Power brands performance highlights
Power brands performance highlights Q3 FY19 YTD FY19 +22% 1,959 +28% 1,606 Sales 682 531 (Rs Cr.) LY CY LY CY +32% +29% 81 237 61 183 EBITDA (Rs Cr.) 11.6% 11.9% 11.4% 12.1% LY CY LY CY 8
Slide 10: Specialty retail performance highlights
Specialty retail performance highlights Q3 FY19 YTD FY19 +22% 872 +28% 716 352 274 Sales (Rs Cr.) LY CY LY CY EBITDA (%) 5.1% 1.5% -1.4% -2.8% 9
Slide 11: Emerging brands performance highlights
Emerging brands performance highlights Q3 FY19 YTD FY19 +6% 423 449 +3% Sales 147 151 (Rs Cr.) LY CY LY CY EBITDA (%) -4.5% -3.0% -4.4% -2.6% EBITDA of Rs 1.7 Cr for Q3 excluding brand closure cost of Rs.6 Cr 10
Slide 12: Performance update: Leadership categories
Performance update: Leadership categories Premium Premium Kidswear Innerwear Prestige Beauty Casuals/Denim +17.3% +16.1% +38.6% +40.4% YTD FY18 YTD FY19 YTD FY18 YTD FY19 YTD FY18 YTD FY19 YTD FY18 YTD FY19 11
Slide 13: Agenda
Q3 and YTD FY19 highlights Key initiatives in Q3 Agenda • Distribution footprint expansion • High impact marketing Q3 FY19 Financials snapshot 12
Slide 14: Distribution footprint expansion: 1.1 Lacs Sq Ft expansion through 37 new stores
Distribution footprint expansion: 1.1 Lacs Sq Ft expansion in area through 37 new stores in Q3 FY19 Sept 30th 2018 Net Addition Q3 Exit - Dec 31st 2018 Store Count Sq Ft (Lacs) No of stores Store Count Sq Ft (Lacs) Power Brands 990 8.5 24 1014 8.8 Speciality Retail 137 11.7 9 146 12.5 Total 1374 22.
Slide 15: Agenda
Q3 and YTD FY19 highlights Key initiatives in Q3 Agenda • Distribution footprint expansion • High impact marketing Q3 FY19 Financials snapshot 14
Slide 16: High impact marketing: Celebrating years of Arrow in India
High impact marketing: Celebrating 25 years of Arrow in India – “Best is yet to come” https://www.youtube.com/watch?v=Wk_-FvryaUg 15
Slide 17: High impact marketing: Strengthening brand Unlimited
High impact marketing: Strengthening brand Unlimited – “Fashion is Unlimited” https://www.youtube.com/watch?v=KuiNEczRcR0 16
Slide 18: Agenda
Q3 and YTD FY19 highlights Key initiatives in Q3 Agenda • Distribution footprint expansion • High impact marketing Q3 FY19 Financials snapshot 17
Slide 19: Q3 FY19 P&L Snapshot
All Figures in Rs. Cr. Q3 FY19 Q3 FY18 Change Revenue from Operations 1,259 1,074 17.2% Cost of Goods Sold 640 488 Employee Benefits Expense 108 96 Others 428 422 Op. EBIDTA 83 68 22.4% Q3 FY19 P&L Op. EBITDA% 6.5% 6.4% Other Income 1 2 Snapshot Interest & Finance Cost 35 23 Depreciation 34 38 Profi
Slide 20: Q3 FY19 Balance Sheet
Particulars (in Rs. Cr.) 31-Dec-18 31-Mar-18 Net Worth 1,079 1,031 Borrowings 991 745 Capital Employed 2,071 1,775 Q3 FY19 Balance Net Working Capital 676 443 Sheet Net Fixed Assets 447 421 Snapshot Other Assets (including returnable 947 910 assets) Capital Employed 2,071 1,775 19
Slide 21: Thank You!
Thank You!