Metro Brands Ltd. · NSE:METROBRAND
Metro Brands — H1 FY2024-25 Earnings Presentation
43 slides from Metro Brands's earnings presentation, Oct 23, 2024
Slide 1: Cover letter to stock exchanges
October 23, 2024 To, To, The Manager The Manager Listing Department Listing Department BSE Limited, National Stock Exchange of India Phiroze JeeJeeBhoy Towers, Ltd, Dalal Street, Mumbai – 400001 (E) Exchange Plaza, 5th Floor, Plot No. Maharashtra, India C/1, G Block, Bandra Kurla Complex, Scrip code
Slide 2: H1 FY2024-25 Earnings Presentation
METRO BRANDS LIMITED H1 FY2024-25 EARNINGS PRESENTATION 23rd October 2024
Slide 3: Safe Harbor statement
Safe Harbor statement • The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the Presentation. The information set o
Slide 4: Agenda
Brief Overview Q2 & H1 FY25 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others
Slide 5: Our Journey
Our Journey • Long term exclusive • Strategic Distribution partnership with Agreement with Foot Locker New Era • Hits 800 stores and • Launch of 1st • Acquired Cravatex Marketcap of $4B Foot Locker Brands Ltd • Crossed gross store • Exclusive license sales of Rs. 2500 for Fila crore • Exclusive tie
Slide 6: Our story in numbers
Our story in numbers Company Facts Performance in H1 FY25 6 Rs 1,162 crores Revenue from operations store formats 871 Rs 336 crores Stores ^ EBITDA 28.9% EBITDA margin 31 72% States & Union territories ^ Revenue contribution of in-house brands at MBOs 198 Cities ^ Rs 123 crores Q1: 2 new cities Ecom
Slide 7: 65+ years of market presence
65+ years of market presence KEY ENABLERS STRONG BRAND WIDE REACH CAPITAL-LIGHT COMPETENT OPERATIONAL PORTFOLIO BUSINESS MANAGEMENT EFFICIENCY ❖ One-stop-shop family ❖ Pan-India presence through ❖ Long-standing ❖ Chairman Mr Rafique A. ❖ Among the few footwear retailer catering to the 871 Stores^ lo
Slide 8: One Stop Shop for all Footwear Needs
One Stop Shop for all Footwear Needs Sep’24 / H1 FY25 (MBO) (MBO) (EBO) (MBO) (EBO) Target Customer Family Youth Premium Value Format Premium 332 249 213 67 10 No. of. Stores (38%) (29%) (24%) (8%) (1%) Cities 171 122 97 46 8 Price Range (INR)1 1,000 – 10,000 1,000 – 10,000 1,500 – 8,000 350 – 3,500
Slide 9: One Stop Shop for all Footwear Needs
One Stop Shop for all Footwear Needs Network of Retail Outlets (as of Sep’24) PAN India Presence with 871 Stores I 198 Cities I 31 States and UTs (As of Sep’24) Zone wise1 Tier wise1 Location Wise1 OUR PRESENCE West Tier III Metro ___________________________ South 31% 16% cities 32% 30% High Street
Slide 10: Agenda
Brief Overview Q2 & H1 FY25 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others
Slide 11: Q2 Business highlights
Q2 Business highlights Standalone Consolidated In INR Crore Q2 FY25 Q2 FY24 YoY Growth% Q2 FY25 Q2 FY24 YoY Growth% Revenue 567 539 5.1% Revenue 585 556 5.4% EBITDA 149 149 0.2% EBITDA 155 156 -0.5% EBITDA% 26.3% 27.6% EBITDA% 26.5% 28.1% PAT 66 62 5.7% PAT 72 68 6.1% PAT% 11.6% 11.5% PAT% 12.3% 12.
Slide 12: H1 Business highlights
H1 Business highlights Standalone Consolidated In INR Crore H1 FY25 H1 FY24 YoY Growth% H1 FY25 H1 FY24 YoY Growth% Revenue 1,130 1,103 2.4% Revenue 1,162 1,138 2.0% EBITDA 330 338 -2.6% EBITDA 336 343 -2.2% EBITDA% 29.2% 30.7% EBITDA% 28.9% 30.1% PAT 158 158 0.3% PAT 164 161 1.8% PAT% 14.0% 14.3% P
Slide 13: Q2 & H1 Business Highlights (Standalone)
Q2 & H1 Business Highlights (Standalone) Revenue from Operations and Revenue per sq.ft Gross Profit and Gross Margins 5,000 4,450 5,200 4,800 4,500 4,300 59.9% 56.2% 60.0% 57.4% 60.0% 55.0% 624 460 564 578 563 567 410 374 539 360 338 332 338 303 312 310 260 210 160 H1 FY24: 1103 ; 9250 H1 FY25: 1130
Slide 14: Q2 & H1 Business Highlights (Consolidated)
Q2 & H1 Business Highlights (Consolidated) Revenue from Operations Gross Profit and Gross Margins 59.1% 56.8% 59.9% 56.4% 59.5% 55.0% 636 460 583 556 583 576 585 410 381 344 329 343 360 316 322 310 260 210 160 H1 FY24: 1,138 H1 FY25: 1,162 110 H1 FY24: 660 ; 58.0% H1 FY25: 665 ; 57.2% 60 Q1 FY24 Q2
Slide 15: Other updates
Other updates Implementation of Bureau of Indian Standards for footwear ❑ The Department for Promotion of Industry and Internal Trade (DPIIT) issued BIS Quality Control Order (QCO) for footwear which was mandatory from 1st January 2024 for most categories of footwear. This was subsequently deferred
Slide 16: Partnership with New Era
Partnership with New Era About New Era ❑ New Era Cap, LLC. is an international lifestyle brand with an authentic sports heritage that dates back over 100 years with a global revenue of ~ $1 billion. The Company is headquartered in Buffalo, NY and operates facilities in Canada, Europe, Brazil, Japan,
Slide 17: Year wise Store additions - Standalone
Year wise Store additions - Standalone Stores 586 +6% 624 +18% 739 +13% 836 +2% 851 +2% 871 15 2 1 115 551 5 H1 : 35 Opened^ 59 87 144 118 17 23 40 Opened Closed^ 24 49 29 21 2 3 5 Closed Relocation^ 3 12 13 8 2 1 3 relocations FY2 FY21 FY22 FY2 FY24 un 24 Sep 24 Sep 24 FY20 FY21 FY22 FY23 FY24 Jun2
Slide 18: Profit & Loss Statement (Standalone)
Profit & Loss Statement (Standalone) In INR Crore Particulars Q2 FY25 Q1 FY25 Q2 FY24 H1 FY25 H1 FY24 FY24 Revenue from Operations 567 563 539 1,130 1,103 2,305 Other Income 22 23 16 45 30 69 Total Income 589 586 555 1,175 1,133 2,374 EXPENSES Purchases of stock-in-trade 276 201 200 477 525 1,032 Ch
Slide 19: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) In INR Crore Particulars Q2 FY25 Q1 FY25 Q2 FY24 H1 FY25 H1 FY24 FY24 Revenue from Operations 585 576 556 1,162 1,138 2,357 Other Income 23 23 16 47 31 71 Total Income 609 599 572 1,208 1,169 2,428 EXPENSES Purchases of stock-in-trade 280 206 209 487 538 1,052
Slide 20: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Balance Sheet In INR Crore As at As at As at As at Particulars September 30, March 31, Particulars September 30, March 31, 2024 2024 2024 2024 Non-current assets Equity Property, plant and equipment 363 350 Equity share capital 136 136 Capital work-in-progress 13 7 Other
Slide 21: Cash Flow statement (Consolidated)
Cash Flow statement (Consolidated) In INR Crore For six months For six months Particulars ended September ended September 30, 2024 30, 2023 Cash flow from Operating Activities Profit before tax for the year 217 223 Add: Non-cash items/re-classification 126 130 Operating profit before working capital
Slide 22: Agenda
Brief Overview Q2 & H1 FY25 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others
Slide 23: Our Key Strengths
Our Key Strengths 1 One of India's largest pan India footwear retailers1 with a brand appeal among aspirational consumer segments 2 Pivoting from primarily "Offline" to an "Omni-channel" enabled footwear & accessories retailer Wide range of brands and products catering to all occasions across age gr
Slide 24: One of India's largest pan India footwear retailers
1 One of India's largest pan India footwear retailers1 with a brand appeal among aspirational consumer segments 551 586 624 739 836 871 13% 14% 13% 16% 13% 15% 14% 15% 13% 14% 13% 15% 23% 21% 24% 22% 25% 23% 25% 22% 24% 22% 24% 21% …with diversified presence across regions2 31% 31% 31% 32% 32% 32% 3
Slide 25: Pivoting from Offline to Omni-channel retailer
2 Pivoting from primarily "Offline" to an "Omni-channel" enabled footwear and accessories retailer E-commerce – Online & Omnichannel ❑ Majority of online business comes through leading e-commerce 2.2% 2.5% 8.1% 7.3% 14.5% 8.4% 7.6% 7.9% 11.0% 9.5% 10.9% marketplaces (Present on major E-commerce mark
Slide 26: Wide range of brands and products (1/3)
3 Wide range of brands and products catering to all occasions across age groups and market segments resulting in strong customer loyalty (1/3) Product presence across multiple categories through Own and Third party brands Own Brands Casual Formal Sports Accessories Third Party Brands Zeolite Fitflop
Slide 27: Wide range of brands and products (2/3)
3 Wide range of brands and products catering to all occasions across age groups and market segments resulting in strong customer loyalty (2/3) Own Brands contribute ~ 70-75% of total store product sales at MBOs Targeting Mid and Premium Segment – Average Realization (Rs.) 1,450 1,500 1,500 H1 FY25 7
Slide 28: Wide range of brands and products (3/3)
3 Wide range of brands and products catering to all occasions across age groups and market segments resulting in strong customer loyalty (3/3) Repeat Sales to Members of Loyalty programs % Total Product Sales 56% 56% 57% 54% 55% 50% FY20 FY21 FY22 FY23 FY24 H1 FY25 1 Loyalty programs have been digit
Slide 29: Asset light business with efficient operating model
4 Asset light business with an efficient operating model leading to sustained profitable growth 1 2 3 4 Outsourced Leveraging scale Identification of Variable Cost Manufacturing of operations store location Structure ✓ One of the few footwear ✓ One of the highest gross ✓ Robust store selection ✓ Lea
Slide 30: Efficient operating model through vendor engagements and supply chain
5 Efficient operating model through deep vendor engagements and TOC based supply chain Long Standing Relationships with Vendors • 250+ vendors dealt with over last 3 fiscal years • 20+ years of relationship with certain vendors Demand Driven Inventory Norms New Designs and Styles • Optimum capital e
Slide 31: Platform of choice for third party brands
6 Platform of choice for third party brands looking to expand in India Image result for crocs logo ❑ Crocs is renowned worldwide for ❑ FitFlop is renowned for offering ❑ Fila is one of the fastest-growing ❑ Foot Locker, Inc. is an American its iconic clog silhouettes. shoes designed for all-day wear
Slide 32: Board of Directors
7 Board of Directors1 UTPAL HEMENDRA SHETH, MANOJKUMAR MAHESHWARI, ARUNA BHAGWAN ADVANI, ARVIND KUMAR SINGHAL, Non-Executive Director (Nominee) Independent Director Independent Director Independent Director ❖ He is a Cost Accountant and ❖ Holds bachelor’s degree in science ❖ Holds bachelor’s degree
Slide 33: Promoters
7 Strong promoter background and an experienced and entrepreneurial management team with a proven track record RAFIQUE A. MALIK, FARAH MALIK BHANJI, ALISHA RAFIQUE MALIK, Chairman Managing Director President - Sports Division, E-Commerce and CRM ❖ Over 50 years of experience in the ❖ Over 20 years o
Slide 34: Strong track record of growth, profitability and financial discipline
8 Strong track record of growth, profitability and financial discipline Revenue from Operations Gross Profit and Gross Margins EBITDA and EBITDA Margins 17,500 16,800 10,150 15,450 19,800 18,700 54.9% 55.6% 54.9% 57.9% 58.1% 58.1% 27.7% 27.5% 21.5% 30.6% 32.0% 29.8% 2,357 1,369 2,127 1,235 681 703 1
Slide 35: Agenda
Brief Overview Q2 & H1 FY25 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others
Slide 36: Key Strategies
Key Strategies 1 3 5 2 4 Store Inorganic E-Commerce Expansion Plans Opportunities Expansion Leverage Multi-channel Evaluation basis Target to open 225 Leverage existing Leverage Sports & Platform targeted returns, stores (excluding Fila) in capabilities to increase Athleisure Segment FY25 and FY26 o
Slide 37: To Summarize
To Summarize…. SOURCING & VENDOR WIDE RANGE OF RELATIONS PRODUCTS PREFERRED PARTNER ASSET LIGHT BUSINESS FOR THIRD PARTY MODEL BRANDS ALLIED PRODUCTS (Accessories, Foot care, PAN INDIA PRESENCE Shoe care, etc.) MULTI-CHANNEL BRAND VINTAGE RETAIL PLATFORM 36
Slide 38: Agenda
Brief Overview Q2 & H1 FY25 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others
Slide 39: CSR & Sustainability Initiatives (1/3)
CSR & Sustainability Initiatives (1/3) Processing of Old & Discarded Footwear (ODF) in an eco-friendly manner ❑ Under this project, ODF is collected & then sorted, cut, and again sorted material wise as below: • Rubber and Plastic materials are sent for recycling. • Other totally worn off parts are
Slide 40: CSR & Sustainability Initiatives (2/3)
CSR & Sustainability Initiatives (2/3) We are introducing digitized smart class We are enhancing English language skills We are supporting to increase the program and supporting some (reading, writing, speaking, listening) for employability quotient of more than 200 infrastructure creation / refurbi
Slide 41: CSR & Sustainability Initiatives (3/3)
CSR & Sustainability Initiatives (3/3) We are creating awareness and early detection of hypertension, diabetes & oral cancer through screening in 1200 cobblers as well as other vulnerable communities. We distributed more than 1600 pairs of footwear to the underprivileged people residing in Wada talu
Slide 42: Awards & Recognition
Awards & Recognition EY Entrepreneur of the Year IMAGES Retail Awards ET Great India Retail Award Award Most Admired Footwear Retailer Retail Brand of the Year ,2024 Consumer Products ,2024 and Retail category, 2024 India Retail Champions Award, IMAGES Fashion Awards dun & bradstreet ESG Awards Reta
Slide 43: Footwear
Footwear (S550) _——. bl crocs ae