Metro Brands Ltd. · NSE:METROBRAND
Metro Brands — Q1 FY2023 Earnings Presentation
43 slides from Metro Brands's earnings presentation, Jul 29, 2022
Slide 1: Metro Brands cover letter to stock exchanges
met ro BRANDS July 29, 2022 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,
Slide 2: Earnings Presentation – Q1 FY2023
met roBRANDS METRO BRANDS LIMITED EARNINGS PRESENTATION – Q1 FY2023 29th July, 2022
Slide 3: Safe Harbor statement
Safe Harbor statement me~ro BRANDS • 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 info
Slide 4: Agenda
met roBRANDS BRIEF OVERVIEW Q1 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 5: Our Journey
Our Journey me~roBRANDS Launch of Launch of crocs· Launch of 1st \\\I Started first MOCHI WALKWAY ties up with EBO 11::TRO Store MBO MBO Hits 200 stores METRO 1977 2010 2021 1955 2000 2009 2012 2015 2022 Incorporation of Launch of • Exclusive the Company E-commerce, tie up with Hits 100 stores • Hit
Slide 6: 65+ years of Market Presence
65+ years of Market Presence me~ro BRANDS Key Enablers 1 2 3 4 5 Wide range of brands and One of the largest Indian Efficient operating model Strong promoter background Asset light business with an products – catering to all footwear specialty retailers1 through deep vendor with an experienced and e
Slide 7: Brief Overview
Brief Overview me~ro BRANDS One Stop Shop for all Footwear Needs PAN India Presence with 644 Stores I 147 Cities I 30 States and UTs (As on Jun’22) West Tier III Metro High Street Jun’22 / South 29% 12% cities 55% (MBO) (MBO) (EBO) (MBO) (EBO) 32% 31% Q1FY23 Airports i Target Customer Family Youth P
Slide 8: Agenda
met roBRANDS BRIEF OVERVIEW Q1 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 9: Q1 FY23 Business Highlights
Q1 FY23 Business Highlights me~roBRANDS Best quarter in Company’s History – Highest ever quarterly Revenue, EBITDA and PAT ! Standalone Consolidated In INR Crore Q1 FY23 Q1 FY22 YOY Growth% Q1 FY23 Q1 FY22 YOY Growth% Revenue 497 126 294% Revenue 508 131 287% EBITDA 181 16 1021% EBITDA 183 14 1170%
Slide 10: Q1 Business Highlights (Consolidated)
Q1 Business Highlights (Consolidated) me~ro BRANDS Revenue from Operations and Revenue per sq.ft Gross Profit and Gross Margins 1,550 3,900 5,900 4,700 5,700 55.7% 57.5% 59.1% 57.3% 59.7% ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ 410 484 508 360 286 303 403 310 325 260 231 210 187 131 160 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22
Slide 11: Other business updates
Other business updates me~ro BRANDS Successful launch of 1st Fitflop EBO in Apr22 ❖ We opened our first Fitflop EBO in Express Avenue Mall, Chennai. We are delighted with the customers response & sales traction seen till date. We intend to open 5 Fitflop stores in FY22-23. Inventory buying front loa
Slide 12: Year wise Store additions
Year wise Store additions me~ro BRANDS Stores 504 +9% 551 +6% 586 +6% 624 +3% 644 38 20 644 - 35 47 85 419 B Opened^ Closed^ 1-------- I Relocation^ ._ _______ II E] I 95 10 1-----, 3 L-----I E] I 57 10 1-----, - L-----I E] I 59 24 1-----, 3 L-----I E] 87 49 1-----, I 12 L-----I E] 25 5 1-----, I 3
Slide 13: Profit & Loss Statement (Standalone)
Profit & Loss Statement (Standalone) me~ro BRANDS In INR Crore Particulars Q1 FY23 Q4 FY22 Q1 FY22 FY22 Revenue from Operations 497 396 126 1,312 Other Income 9 13 16 58 Total Income 506 409 142 1,371 EXPENSES Purchases of stock-in-trade 258 202 85 684 Changes in inventories of stock in trade (59) (
Slide 14: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) me~ro BRANDS In INR Crore Particulars Q1 FY23 Q4 FY22 Q1 FY22 FY22 Revenue from Operations 508 403 131 1,343 Other Income 9 13 16 59 Total Income 517 417 147 1,402 EXPENSES Purchases of stock-in-trade 263 206 90 700 Changes in inventories of stock in trade (59)
Slide 15: Agenda
met roBRANDS BRIEF OVERVIEW Q1 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 16: Our Key Strengths
Our Key Strengths me~ro BRANDS 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 f
Slide 17: 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 BRANDS PAN India Network of Retail Outlets (as at Jun’22) …with diversified presence across regions2 . ,;-.,...·'···~-\ 551 586 624 644 r/ ··,.!._ ·---,.______,.., 13% , - - - -1 I 14% I 1
Slide 18: Pivoting to an Omni-channel retailer
2 Pivoting from primarily "Offline" to an "Omni-channel" enabled footwear and accessories retailer “Highest number of Instagram Followers among key footwear 2.2% 2.5% 8.1% 7.3% 14.5% 8.4% 7.6% ❖ Majority of online business comes through leading e-commerce retailers in India” (CRISIL) 110 marketplace
Slide 19: 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 Skechers Adidas
Slide 20: 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 through 5 different Brand Outlets Average Realization P
Slide 21: 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 Loyalty programs have been digitized and thus provide insights into Customer Preference % Total Product Sales 1 a
Slide 22: Asset light business with an efficient operating model
4 Asset light business with an efficient operating model leading to sustained profitable growth Outsourced ✓ One of the few footwear Retailers in India to source all products through outsourcing 1 Manufacturing arrangements without own manufacturing facility1 ✓ One of the highest gross margins among
Slide 23: Efficient operating model through vendor engagements and TOC 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 Lean Inventory Norms New Designs and Styles ❖ Optimum capi
Slide 24: Platform of choice for third party brands
6 Platform of choice for third party brands looking to expand in India Why brands prefer Metro platform MARKET POSITION STORE ECONOMICS OMNI CHANNEL PRESENCE WIDE REACH • Long track record of • Healthy store economics by • Presence across EBO/MBOs, • PAN India Presence successfully incubating and op
Slide 25: Board of Directors
7 Board of Directors1 ARUNA BHAGWAN ADVANI, ARVIND KUMAR SINGHAL, MANOJ KUMAR MAHESHWARI, IQBAL HASANALLY DOSSANI, Independent Director Independent Director Independent Director Whole Time Director ❖ Holds bachelor’s degree in science ❖ Holds Bachelor of Engineering degree ❖ Holds bachelor’s degree
Slide 26: Strong promoter background and experienced management team
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 – E-commerce and Marketing ❖ Over 50 years of experience in the ❖ Over 20 years of experienc
Slide 27: 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 57.9% 30.6% 15,450 55.6% 54.9% 54.9% 27.7% 27.5% 10,150 1,343 21.5% 410 1,217 1,285 354 337 714 777 800 668 440 172 FY19 FY20 FY21 FY
Slide 28: Agenda
BRIEF OVERVIEW Q1 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 29: 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 260 Leverage existing Expand Portfolio of platform targeted returns, stores under various capabilities to increase Accessories and formats by end of FY25
Slide 30: To Summarize
To Summarize…. WIDE RANGE OF PRODUCTS SOURCING & VENDOR RELATIONS PAN INDIA PRESENCE PREFERRED PARTNER BRAND VINTAGE FOR THIRD PARTY BRANDS ALLIED PRODUCTS MULTI-CHANNEL (Accessories, Foot care, RETAIL PLATFORM Shoe care, etc.) ASSET LIGHT BUSINESS MODEL 29
Slide 31: Agenda
BRIEF OVERVIEW Q1 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 32: Sustainability Initiatives (1/4)
Sustainability Initiatives (1/4) SOLAR ROOFTOPS AT OUR WAREHOUSES RECYCLED DISCARDED FOOTWEAR Solar rooftops installed at both of our warehouses with a combined Co-processed around 130 tons of old discarded capacity of 240 KW, generating solar power of 222 MWh which is footwear (~ 1.69 lac pairs) at
Slide 33: Sustainability Initiatives (2/4)
Sustainability Initiatives (2/4) Through Project Nanhi Kali, we contributed towards providing access to quality education to 500 underprivileged girls from Bharuch, Gujarat and helped them complete schooling with dignity. Sponsored 230 underserved adolescents to develop leadership skills in them thr
Slide 34: Sustainability Initiatives (3/4)
Sustainability Initiatives (3/4) Through UnLtd India, we supported 32 Social Entrepreneurs to grow in their leadership skills through incubation support, immersive residential workshops, capacity building and increasing the network of their supporters. Through Fidai Girls Educational Institute, we s
Slide 35: Sustainability Initiatives (4/4)
Sustainability Initiatives (4/4) Distributed ~18,000 footwear pairs to the less fortunate rural school children of Maharashtra, Gujarat, Odisha and Telangana. Other initiatives include : ❑ Empowering 150 Mumbai Railway Station based Shoe Shiners on the aspects of their Livelihood, Healthcare and Fin
Slide 36: Awards & Accolades (1/3)
Awards & Accolades – (1/3) me~ro BRANDS For Lead Awar ASIXS PC)\VEll nus1~·rss- \Y 0~1E~ 2()') 1 Managing director, Metro Brands Age: 45 • India Malik Bhanji runs Metro Brands, India's fourth-largest footwear retailer by revenues, with over 10 in-house ond more than 25 third· party brands . The pand
Slide 37: Awards & Accolades (2/3)
Awards & Accolades – (2/3) 2022 2022 2022 India Retail Champions Award { RAI } India’s Most Admired Retailer Best Use Of Cloud Services - Ecommerce Footwear category IMAGE Fashion Awards Technology Excellence Awards 2022 36
Slide 38: Awards & Accolades (3/3)
Awards & Accolades – (3/3) 2021 Franchise India Awards Retail Brand Of The Year- Footwear 2021 MAPIC India Awards Most admired retailer of the year- Footwear 2021 IMAGES RETAIL AWARDS 2021 Most Admired Retailer Tech India Retail Champions Award { RAI } Implementation Footwear category 37
Slide 39: Agenda
BRIEF OVERVIEW Q1 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 40: Industry Overview (1/2)
Industry Overview (1/2) Low per capita footwear consumption in India as compared to other countries Per Capita footwear consumption India Per Capita Consumption of Footwear (2019) Per capita consumption of footwear (pairs) 8.1 6.4 2.0 – 2.1 6.2 6.2 1.9 5.8 1.6 4.3 4.0 1.2 3.3 3.2 2.5 1.9 USA Japan U
Slide 41: Industry Overview (2/2)
Industry Overview (2/2) Organized Retail Penetration - Footwear Segment wise market composition Category wise market composition In Percentage (%) 10% 10% 10% 6% 7% 8% 38% 9% 11% 13% 35% 30% 32% 34% 31% 33% 23% 27% 28% 23% 62% 60% 58% 56% 56% 51% FY15 FY20 FY21 FY22P FY25P FY15 FY20 FY25P FY15 FY20
Slide 42: Slide 42
Slide 43: Thank You
THANK YOU