Aditya Birla Fashion And Retail Ltd · NSE:ABFRL
Aditya Birla Fashion And Retail — Q2 FY2021 Earnings Presentation
49 slides from Aditya Birla Fashion And Retail's earnings presentation, Nov 6, 2020
Slide 1: Outcome of Board Meeting letter to stock exchanges
November 6, 2020 BSE Limited National Stock Exchange of India Limited Scrip code: 535755 & 890148 Symbol: ABFRL & ABFRLPP Sub.: Outcome of the Meeting of the Board of Directors of Aditya Birla Fashion and Retail Limited (“the Company”) Ref.: 1. Regulation 30 (read with Schedule III - Part A), 33, 42
Slide 2: Independent Auditor's Review Report (Standalone)
SR BC& CO 12th Floor, The Ruby 29 Senapati Bapat Marg Dadar (West) Chartered Accountants Mumbai · 400 028, India Tel :+912268198000 Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 and 52 of the
Slide 3: Auditor's Review Report - Emphasis of Matter
SR BC & CO LLP Chartered Accountants 5. Emphasis of Matter We draw attention to Note 9 of the Statement which describes management's assessment of the impact of the COVID 19 pandemic on the Company's operations and carrying value of assets as at September 30, 2020. Our opinion is not modified in res
Slide 4: Standalone Financial Results for Quarter and Six Months
Adttya Blrta Fashion and Reten Um�ed STATTMENT Of UNAUDITED STANDALONE FINANCAL RESULTS fOR THE QUARTTR AND SIX MONTHS ENDED SEPTEMBER 30, 2fJ20 ,1no..,,., Quarter ended Shi: months ended Yeerended Sr. ND, Partltulars s.ptemb., 30, 2020 tun.udlledl Jun.SO, 2l)20 (Unaudlled) S.pbmbB 307 2019 S.phlmbt
Slide 5: Standalone Balance Sheet
Notes: 1 Standalone Boilance Sheet '?in Crore Asat Asat S.�ptembe:r 30, Marth 31, Particulars 2020 2020 (Unaudited) (Audited) /J, ASSETS I Non-current assets (a) Property, plant and equipment 602.10 638.10 (b) Capital work-in-progress 47.62 40.06 (c) Right-of-use assets 1,993.77 2,174.43 (d) Goodwil
Slide 6: Standalone Statement of Cash Flows
2 Standalone Statement of cash Flows '{ in Crore Six months Six months ended ended Particulars September 30, September 30, 2020 2019 !UnauditedI /Unaudited) I Cash flows from operating activities Profit/ (loss) before tan (775.88} 70.97 Adjustments for: Depreciation and amortisation expense 470.94 4
Slide 7: Notes to Standalone Financial Results
3 The above standalone financial resul� have been prepared In accordance with lndiJn Accounting Standards {Ind AS) - 34 "Interim FinancJal Reporting• Ai prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Aallunting Standards} Rutes, 201S, as amended. 4
Slide 8: Details of Non-Convertible Debentures
Detillls w.r.t. the unsecured, rated, redeemable, Non-convertible Debentures rNCDs") i ssued by the Compilny ilre .lS follows: -The u�lt r.itfng by CRISIL for the NCDs continues to be AA (Stable). -The non-convert!ble debt securities of the Company are unsecured. -The previous due date{s) for paymen
Slide 9: Independent Auditor's Review Report (Consolidated)
SR BC & CO LLP 12th Floor, The Ruby 29 Senapati Bapat Marg Dadar (West) Chartered Accountants Mumbai - 400 028, India Tel : +91 22 6819 8000 Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of
Slide 10: Auditor's Review Report - Emphasis of Matter
SR BC & CO LLP Chartered Accountants 5. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of other auditors referred to in paragraph 7 below, nothing has come to our attention that causes us to believe that the
Slide 11: Consolidated Financial Results for Quarter and Six Months
Adlty,, Blrl<I Fashion andRctal!Umlted __ STATEMENT OF UNAUDITED CONSOUDATED FINANIJAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 2020 lltlnCrore Quarter ended Six months ended Year ended ..,_ Sr. Na. Portlcular.; S.ptambff90, 2020 hne30, 20211 s.,,,.,,,i,.,..,, 2019 """ Scphmbtr 30,
Slide 12: Consolidated Segmentwise Revenue and Results
,_ UNAUDITED CONSOLIDATED SEGMENTWISE REVENUE, RESULTS, ASSETS AND UABIIITIES FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 2020 ------·--·-- ···-·•-•·· ------�----· , lnCrore Sr. -----·--r----- -bcr30, ........ Quoner ended S.pt.mbar 30, Six months ended Stpttmber 30, I September 30, Year ende
Slide 13: Consolidated Balance Sheet
Notes: 1 Consolidated Balance Sheet ,,: In Crore Asat Asal September 30, March 31, Particulars 2020 2020 (Unaudited) (Audited) A ASSETS I Non-current assets (a) Property, plant and equipment 615.29 642.89 (b) capital work-in-progress 47.87 44.08 (c) Right-of-use assets 2,024.26 2,206.85 (d)Goodwill
Slide 14: Consolidated Statement of Cash Flows
2 Consolidated Statement of cash Flows "In Crore Six months Six months ended ended September 30, September 30, Particulars 2020 2019 (Unaudited) (Unaudited) {Refer note 14) (Refer note 14) I cash flows from operating activities Profrt/ (loss) before tax (79S.81), 60.43 Adjustments for: Depreciation
Slide 15: Notes to Consolidated Financial Results
The above consolidated financial results have been prepared In accordance with Indian Acoounting Standards {Ind AS) - 34 "Interim Finandal Reporting" as prescribed under Section 133 of the Companies Act, 2013 rc.Jd with Ruic 3 of the COmpunlcs llndliln Accounting Standards) Rules, 2015, as amtmded.
Slide 16: Business shows recovery; balance sheet strengthened to accelerate growth
Aditya Birla Fashion and Retail: Business shows recovery; balance sheet strengthened to accelerate growth Performance Highlights 1. Q2 shows good recovery over Q1 with gradual opening of stores in the quarter. a. Sales in Q2 grew by 218% over Q1 b. Store network operating at 96% by September 2. Succ
Slide 17: Q2 recovery after COVID-19 washout quarter
Following an almost washout quarter in June in the wake of COVID 19 pandemic, the September quarter showed signs of swift recovery across businesses. Most of the stores opened with footfalls rising gradually. As a result, the revenues after falling to 16% of the previous year in Q1, recovered to 45%
Slide 18: About Aditya Birla Fashion and Retail Limited
About Aditya Birla Fashion and Retail Limited ABFRL is part of a leading Indian conglomerate, The Aditya Birla Group. With revenue of Rs. 8,788 Cr in FY19-20, it is India’s first billion-dollar pure-play fashion powerhouse with an elegant bouquet of leading fashion brands and retail formats. As on 3
Slide 19: Performance Highlights
Performance Highlights
Slide 20: Q2 Highlights agenda
Distribution Q2 Network Highlights Market Way Update Forward Performance of Key Financials Portfolios
Slide 21: India's widest distribution network
India’s widest distribution network 3 17 2 10 20 82 12 54 2 131 BRANDS 111 13 6 14 1 2,686 Stores 115 10 297 3 1 31 6 1 35 101 4 1 8 5 3 PANTALOONS 92 27 74 10 62 5 85 37 9 1 4 339 Stores 27 5 73 358 8 ~26,000 Multi-Brand Outlets 43 121 14 8.1 Q2 FY21 9 292 73 Footprint 6,589 SIs across all Dept. St
Slide 22: Q2 Highlights agenda
Distribution Q2 Network Highlights Market Way Update Forward Performance of Key Financials Portfolios
Slide 23: Market Update
Market Update Recovery Underway Technology Deeper Partnerships Differential Impact Accelerator Markets exhibit Players investing Deeper ecosystem Differential impact gradual recovery as deep, with long term partnerships getting witnessed across consumers adjust to focus on – forged to leverage marke
Slide 24: Q2 Highlights agenda
Distribution Q2 Network Highlights Market Way Update Forward Performance of Key Financials Portfolios
Slide 25: Key Focus Areas
Return to Normalcy Key — 96% of network operations with highest degree of safety and hygiene protocols; Other facilities fully operational Focus — Significant progress on Digital Transformation Roadmap Areas — Product Innovation and addition of new categories delighting customers Cost Reduction — Co
Slide 26: Q2 key themes
Gradual Recovery in Consumer Footfalls ABFRL Accelerated pace of recovery vs previous quarter on account of movement relaxations and consumer adaptation to new normal Cost Rationalization Continues Quarter saw company wide cost optimization initiatives gave favorable results Strategic fund raises to
Slide 27: ABFRL | Q2 Highlights
ABFRL | Q2 Highlights In Rs. Cr. Q1 FY21 Q2 FY20 Q2 FY21 Revenue 323 2308 1028 Growth% (QoQ) 218% Growth% (YoY) -84% -55% EBITDA -182 356 136 EBITDA M argin -56.3% 15.4% 13.2% EBIT -419 131 -106 PAT -410 -2 -188
Slide 28: ABFRL | H1 Highlights
ABFRL | H1 Highlights In Rs. Cr. H1 FY20 H1 FY21 Revenue 4373 1351 EBITDA 687 -46 EBITDA Margin 15.7% -3.4% EBIT 260 -525 PAT 19 -599
Slide 29: Q2 – Continued focus on Cost Reduction
Q2 – Continued focus on Cost Reduction Change Change In Rs. Cr. Q4 FY20 Q2 FY21 over Q4 Q2 FY20 over Q2 FY20 FY20 Revenue from Operations 1832 1,028 -44% 2,308 -55% Other Income 17 143 17 Total Income 1849 1,171 -37% 2,324 -50% COGS 886 540 -39% 1,147 -53% Cost reduction Q2 FY21 vs Q4 FY20: Employee
Slide 30: Key segments | Q2 Highlights
Key segments | Q2 Highlights Consolidated Financials NSV EBITDA EBITDA % ( In Rs. Cr.) Q2 FY20 Q2 FY21 Growth Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Madura Lifestyle Brands 1254 531 -58% 218 39 17.4% 7.3% Other Businesses 209 175 -16% 23 26 10.8% 15.1% Madura Segment 1463 706 -52% 240 65 16.4% 9.2% Pantalo
Slide 31: Key segments | H1 Highlights
Key segments | H1 Highlights Consolidated Financials NSV EBITDA ( In Rs. Cr.) H1 FY20 H1 FY21 Growth H1 FY20 H1 FY21 Madura Lifestyle Brands 2259 721 -68% 408 -29 Other Businesses 414 222 -46% -7 -11 Madura Segment 2673 942 -65% 402 -40 Pantaloons Segment 1805 451 -75% 310 -1 Elimination -115 -55 -1
Slide 32: Q2 Highlights agenda
Distribution Q2 Network Highlights Market Way Update Forward Performance of Key Financials Portfolios
Slide 33: Agile response to changing customer needs; new products
Agile response to New product categories Innerwear sales ahead of Ethnic branded business changing customer and new channels last year levels, reflecting gradually scaling up on the needs; new products delighting customers market share gains back of new categories and channels unveiled and traction
Slide 34: Lifestyle Brands: performance of key portfolios
performance of key portfolios LIFESTYLE BRANDS
Slide 35: Lifestyle Brands
— Lifestyle Retail channel achieved 60% of LY sales; higher impact on overall revenue due to decline in wholesale channel — E-commerce continue robust growth, contribution up 3x over last year in H1 LIFESTYLE — India’s largest premium cloth mask player (over BRANDS 10 million masks sold in H1) — Cre
Slide 36: Channel-wise revenue and loyalty
Q2 H1 Channel-wise Revenue (in Rs. crore) Channel-wise Revenue (in Rs. crore) Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 Wholesale 595 72 Wholesale 944 108 Retail 404 236 Retail 854 307 Others 255 223 Others 462 306 Loyalty Base (lakh) Q2 FY21 199 Q2 FY20 170 55% of revenues from loyal customers
Slide 37: Pantaloons
wusT RISING
Slide 38: Pantaloons
— Staggered opening of retail network through PANTALOONS the quarter; 96% stores open by end of Q2 — New channels scaling up — E-commerce sales grew 3x — Stronger assortment, new categories launched leading to higher traffic and better conversions — Significantly higher investment in digital marketi
Slide 39: Pantaloons category mix
10% 25% 35% 17% Q2 Q2 FY21 8% FY21 67% 17% 21% Men Women's Western Own Brands Women's Ethnic MFL Kids Others Non Apps 9% 13% 36% 31% Q2 Q2 20% FY20 FY20 62% 22% 7%
Slide 40: Other Business Segments
performance of key portfolios ADITYA BIRLA
Slide 41: Innerwear & Athleisure
INNERWEAR & ATHLEISURE — Strong demand for Innerwear and Athleisure categories led to high growth — One of the few businesses running ahead of last year levels — Growing salience and increasing consumer acceptance resulting in rising market share — Robust E-commerce performance, recorded highest eve
Slide 42: Global Brands
Global Brands Global Brands — Business continues to be resilient, delivered close to last year levels — Very strong traction at TheCollective.in; impressive QoQ performance — Effective cost measures helped business turn around on profitability Forever 21 — Revised agreement with better terms signed
Slide 43: Ethnic Wear
Ethnic Wear Jaypore - Jaypore.com — Online sales back to pre-COVID level — New categories such as Home, loungewear etc. showing promising results Shantanu and Nikhil - ShantanuNikhil.com — Own ecommerce launched for both couture and pret lines — 2 new pret stores opened during the quarter
Slide 44: Q2 Highlights agenda
Distribution Q2 Network Highlights Market Way Update Forward Performance of Key Financials Portfolios
Slide 45: Way Forward
Continued network Expansion drive to continue Innerwear – Continue Comprehensive strategy expansion aggression in distribution being executed to build Strengthen digital play and marketing strong presence across Sustained product keys segments of the innovation in line with Global Brands – Focus on
Slide 46: Q2 Highlights agenda
Distribution Q2 Network Highlights Market Way Update Forward Performance of Key Financials Portfolios
Slide 47: Financials
Financials ABFRL - Consolidated In Rs. Cr. Q2 FY20 Q2 FY21 H1 FY20 H1 FY21 Consolidated Balance Sheet In Rs. Cr. FY20 H1 FY21 Revenue from Operations 2,308 1,028 4,373 1,351 Networth 1,088 997 Other Income 17 143 34 322 Net Debt 2,509 3,159 Total Income 2,324 1,171 4,407 1,673 Lease Liability 2,502
Slide 48: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements” including, but not limited to, those relating to general business plans & strategy of Aditya Birla Fashion and Retail Limited (“ABFRL"), its future outl
Slide 49: Hello 'new' Pantaloons!
Hello ‘new’ Pantaloons!
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