Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q1 FY25 Earnings Presentation
51 slides from Vaibhav Global's earnings presentation, June 2024
Slide 1: Q1 FY25 Investor Presentation
Vaibhav Global Limited Q1 FY25 Investor Presentation
Slide 2: Disclaimer
Disclaimer This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Vaibhav Global Limited (VGL) and its group companies’ future business developments and economic p
Slide 3: MD's Message
Sustained our growth momentum with 15% increase in revenue. Gross margins improved substantially to 66.1%, thanks to focused pricing efforts, favorable product mix and efficient sourcing. EBITDA margin was 8.7% of revenue vs 10% in Q1 FY24. This decrease is primarily due to higher spending on digita
Slide 4: Q1 FY25 Highlights
Q1 FY25 Highlights 15% YoY 20% YoY 8.7% Rs. 158 cr. Revenue Growth Volume Growth EBITDA Margin Net Cash Positive Quarterly revenue grew by 15%- in line with our stated guidance A Strong Balance Sheet: Net cash position of Rs. 158 crores Unique customer base of ~636k suggesting a YoY growth of 37% De
Slide 5: Table of Contents
06 11 Company Business Table of Contents Overview Overview 26 30 Update on Emerging Industry Acquisitions Trends & Germany 34 40 Operational & Financial Financial Highlights Performance Trends 45 Annexures
Slide 6: Company Overview
of VAIBHAV GLOBAL LIMITED COMPANY Overview
Slide 7: About Us
About Us Vertically-integrated Digital Retailer of fashion Strong Customer Visibility jewellery & lifestyle products ▪ TV Homes accessed (*FTE): ~ 130 mn ▪ End-to-end B2C business model households ▪ Presence through proprietary TV channels and ▪ Growing digital presence digital platforms Strong Mana
Slide 8: Our Vision and Mission
Sustainability Initiatives Our Vision Be the Value Leader in Electronic Retailing of Jewellery & Vaibhav Global Limited Lifestyle Products Global Retailer on TV and Digital Platforms of Fashion Jewelry, Lifestyle Products and Accessories Our Mission To deliver 1 million meals per school day to child
Slide 9: An Evolving Journey
An Evolving Journey Started Gemstones Started Jewellery Listing on stock business manufacturing for B2B exchange 1980 1996 1997 Started 'Lifestyle Products' Shifted strategy towards category, name changed to 'value conscious offering' Vaibhav Global Ltd. 06-07 Started own TV 2013 2008 channels in UK
Slide 10: Strong & Experienced Management
Strong & Experienced Management Mr. Sunil Agrawal Mr. Nitin Panwad Mr. Vineet Ganeriwala Ms. Dee Kumar Mr. Deepak Mishra Managing Director, VGL Group Group CFO, VGL Group President, Shop LC (US) Managing Director, Managing Director, Shop TJC (UK) Shop LC (Germany) Mr. Mohammed Farooq Mr. Pushpendra
Slide 11: Business Overview
Vv VAIBHAV GLOBAL LIMITED Overview
Slide 12: A Global Retailer on Proprietary TV Channels
A Global Retailer on Proprietary TV Channels Proprietary ‘TV Channels’ Primary Retail Markets 61 million HH USA 27 million HH UK 42 million HH Germany Reaching TV homes through Cable, Satellite and OTA broadcasts (Over The Air) HH: Households
Slide 13: Complemented by Digital Platforms
Complimented by Digital Platforms Digital Platforms Our Presence Proprietary Digital Platform Mobile Applications www.shoplc.com www.tjc.co.uk www.shoplc.de www.idealworld.tv www.mindfulsouls.com Third Party Marketplaces Social Retail OTT Platforms
Slide 14: With Huge Growth Potential: TAM of USD 20 bn
With Huge Growth Potential: TAM of USD 20 bn Opportunity ➢ Target customers: Baby Boomers (65+ years) & Gen X size (45+ years) $14- $15 bn UNITED STATES $2-$2.5 bn UNITED KINGDOM ~$3 bn ➢ Value-buying proposition of ~$35 GERMANY & AUSTRIA ➢ Widest product range comprising ~25,000 SKUs • Statista, Ma
Slide 15: Vertically Integrated Supply Chain: Jaipur
Vertically Integrated Supply Chain Leveraging Global Jewellery Manufacturing Hub: Jaipur Global manufacturing hub 169,000 sq. ft. Making in India for of Fashion Jewellery & Fully-integrated Manufacturing Set-up in Jaipur ‘Western Markets’ Gemstones Production Capacity: 5 million pcs p.a. Availabilit
Slide 16: Strong Global Sourcing Base
Vertically Integrated Supply Chain Complemented by a Strong Global Sourcing Base Sourcing Countries ▪ India ▪ UK ▪ China ▪ Mozambique ▪ Thailand ▪ Germany ▪ Indonesia ▪ Italy ▪ Tanzania ▪ Turkey ▪ Russia ▪ Poland ▪ Morocco ▪ Singapore ▪ Myanmar ▪ UAE ▪ Madagascar ▪ Japan ▪ Bolivia ▪ Bangladesh ▪ Ken
Slide 17: Constantly Reimagining Growth Through New Designs & Products
Constantly Reimagining Growth Through New Designs & Products Fashion Jewellery & Gemstones Life-Style Products Detangler Hair-Brush Trending Beauty Spinner Ring Soulsmart Ring (Retractable Bristle Technology) Products ▪ ~14K-15K new jewellery designs launched annually ▪ A rich product basket of ~500
Slide 18: 'Innovation' Focused
‘Innovation’ Focused 51,000+ 6,300+ 2,500+ Ideas Generated Ideas Approved Products sold 46,000+ 4,300+ Ideas Proposed to Orders Placed Buyers Global Search Program Crowdsourcing of Ideas Received ‘Design Patent’ for Received ‘Design Patent’ for A Global product innovation From employees, customers a
Slide 19: Strengthening Own Brand Portfolio
Strengthening Own Brand Portfolio USA UK Germany • Leveraging manufacturing & digital capabilities • Number of brands: 31 • Current revenue mix: ~27% of B2C revenue • Target revenue mix: ~50% by FY27 of B2C revenue • Strategic brand matrix (price laddering and offering) • Increase repeats and retent
Slide 20: Resulting In
Resulting In
Slide 21: Top decile shareholders' returns since listing
Top decile shareholders’ returns since listing Growing Consistently Parameters CAGR Return (Rs. in crores) (27 years) (x times) Revenue 18% 93 EBITDA 17% 66 Profit After Tax 14% 35 ~24% CAGR in market cap. since listing (~340 times), excluding dividends
Slide 22: R's of Customer Engagement
4 R’s of Customer Engagement TV: Diverse Products Enduring relationships Linear | OTA Expanding wallet share Digital: Deep value proposition Convenience Browsers | Mobile Apps | Cross-selling Market-places | OTT| Social Media Engrossing Content Digitalization/AI Registrations & Reach (HH) Retention
Slide 23: Continued growth in customer base
Continued growth in customer base in existing & acquired businesses Customers (in ‘000) (TTM basis) ➢ Total unique customer base 164 of 636K 126 84 ➢ Q-o-Q growth of 9% 454 459 472 452 ➢ Ex-acquisition growth of 3% Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Existing Business Acquired Businesses
Slide 24: With long term value creation
With long term value creation Cash accretive business model With strong dividend payouts 272 268 237 230 190176 105 127 Since FY20 Rs. in crores 90 27 -2 Profits After Tax 958 FY 20 FY 21 FY22 FY23 FY24 Q1 FY25 Dividend payout 510 Investment in working capital for forthcoming Impact of one-time fest
Slide 25: Broad Based E-tailer
Broad Based E-tailer B2C Revenues by Format B2C Revenues by Product TV revenues Digital revenues Jewellery Lifestyle 27% 39% 40% 12% 30% 35% 73% 88% 61% 60% 70% 65% FY18 FY24 Q1 FY25 FY18 FY24 Q1 FY25 Jewellery : Fashion Jewellery, Gemstones and Accessories Lifestyle : Home Décor, Beauty & Hair Care
Slide 26: An update on Germany and Recent Acquisitions
An update on GERMANY AND RECENT ACQUISTIONS
Slide 27: An update on Germany
An update on Germany Increased TAM (immediate target addressable market) by ~20% ▪ Q1 revenue: Euro 5.4 mn ▪ 65%+ gross margins ▪ Repeat purchase: 22 pieces ▪ Digital sales mix: 28% ▪ Presence in 42 million households (95% penetration) ▪ Dispatching 3.5k+ pieces/day Revenue Trend 50 No. of HH (in mi
Slide 28: Ideal World
Ideal World Operational update • Transponding across major TV networks in UK • Unique customers: 78k • Upgraded our presence on HD • New studio operational Financial update • Q1 revenue of £ 4.5 million at healthier gross margins of 62% + • Operating profitably on direct cost basis • To become profi
Slide 29: Mindful Souls
Mindful Souls Operational update • Unique customers: ~85K* • Constantly launching new products • Benefit of VGL’s supply chain to reflect in coming months Financial update • Q1 revenue: €4 million • 70%+ gross margins *since acquisition
Slide 30: Emerging Industry Trends
Vv VAIBHAV GLOBAL LIMITED Emerging
Slide 31: Capitalizing Cord Shifting through OTA
Capitalizing Cord Shifting through OTA Our target demographics prefer Expanding presence through OTA watching traditional Pay-TV % of population having TV (age group wise) Total OTA HH in US: 86% 23 mn 80% 81% 73% 65% 66% Shop LC’s Presence 46% Low Power: ~18 mn HH 34% Full Power: ~5 mn HH Revenue M
Slide 32: Widening Digital Presence: OTT
Widening Digital Presence OTT: Huge Growth opportunity In US, OTT’s are projected to be the fastest growing video distribution medium US internet connected device installed base, 2016 to 2026 Live & Interactive Apps Shop LC (US) OTT revenue trend (USD mn) $10.5 $7.5 $6.0 $2.2 $3.0 FY21 FY22 FY23 FY2
Slide 33: Being Resilient
Being Resilient • Revival in consumer demand continues 18.0% 46.0% Revenue and EBITA % trends 16.0% • Improved pricing, and product mix aiding 14.0% 36.0% 11.1% 12.0% gross margins 10.0% 9.5% 26.0% 23% 8.7% 10.0% • Increased investment in digital for future 8.0% 8.1% 8.0% 14% 15% 16.0% growth impact
Slide 34: Operational & Financial Highlights Q1 FY25
Highlights Q1 FY25 OPERATIONAL & FINANCIAL HIGHLIGHTS
Slide 35: Financial Highlights – Q1 FY25 Revenue breakup
Financial Highlights – Q1 FY25 Revenue breakup Revenue & Revenue Split (Rs. Crore) TV Revenue Digital Revenue B2B Revenue Total B2C Revenue 16.0% 12.2% 21.7% 729 289 440 629 237 392 29 27 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1FY24 Q1 FY25 *incl. revenue share from recent acquisitio
Slide 36: Revenue in Local Currency – US and UK
Financial Highlights – Q1 FY25 Revenue breakup Revenue – (Local Currency) Shop LC (US) Shop TJC (UK) 5 years CAGR 5 years CAGR 5% 8% (USD million) (GBP million) 3.7% 53.2 17.8% 51.3 19.2 16.3 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25* 36 *incl. Ideal World and TJC Beauty
Slide 37: Retail Performance Trends – Q1 FY25
Retail Performance Trends – Q1 FY25 TV Sales Sales Volume ('000s) Average Selling Price US$ 18.9% 41.9 1,351 39.1 1,137 Q1 FY24 Q1 FY25* Q1 FY24 Q1 FY25 Digital Sales Sales Volume ('000s) Average Selling Price US$ 20.7% 31.0 30.8 1,124 31.0 931 26.0 21.0 16.0 Q1 FY24 Q1 FY25* Q1 FY24 Q1 FY25 37
Slide 38: Financials – Q1 FY25 Performance
Financials – Q1 FY25 Performance Gross Profit (Rs. Cr) and Margin (%) EBITDA (Rs. Cr) and Margin( %) 61.2% 66.1% 10.0% 8.7% 24.2% 0.3% 500 65 66 403 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 PAT (Rs. Cr) and PAT Margin (%) EPS (Rs.) 4.4% 3.6% 1.8 1.7 7.2% 30 27 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25
Slide 39: EBITDA Margin Walk
EBITDA Margin Walk % to Particulars Remarks revenue EBITDA Q1 FY24 10.0% Gross margin 4.9%* Better pricing and product mix Variable cost 1.5% Impact of increase in volume and higher B2B shipping cost (0.8%) Digital marketing 2.7% Increased investment on strengthening digital (inc. Mindful Soul
Slide 40: Financial Performance Trends
FINANCIAL PERFORMANCE Trends
Slide 41: Financial Performance Trends
Financial Performance Trends Revenue Breakdown – (Rs. crore) 5 years CAGR: 11% 3,041 2,540 2,752 2,691 1,814 1,986 658 756 FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY24 Q1 FY25 Fashion Jewelry, Accessories & Lifestyle Products (Rs. Crore) 5 years CAGR: 9% 5 years CAGR: 18% TV Revenue B2B Revenue Digital Rev
Slide 42: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volume ('000s) Average Selling Price US$ 7,837 39.1 41.9 39.1 6,998 38.0 6,275 6,070 29.9 32.6 5,331 5,459 26.5 27.7 1,137 1,351 FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY24 Q1 FY25 Digital Sales Sales Volume ('000s) Ave
Slide 43: Financials – Financial Performance
Financials –Financial Performance Shareholders’ Equity (Rs. Cr) Fixed assets including intangibles (Rs. Cr) 1,258 1,287 622 626 1,203 1,127 964 511 494 697 751 163 192 117 FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25 FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25 Net Debt* (Rs. Cr) Net Assets^ (Rs. Cr) FY19 FY20 FY
Slide 44: Financial Performance – Trends & Ratios
Financial Performance – Trends & Ratios Operating Cash flow (Rs. Cr) Free Cash Flow (Rs. Cr) 268 324 230 270 181 176 203 211 126 90 86 4 (214) (2) FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25* FY19 FY20 FY21 FY22 FY23 FY24 Q1 FY25* ROE (TTM) ROCE (TTM) 32% 61% 25% 26% 23% 46% 37% 31% 9% 10% 10% 19% 17% 14%
Slide 45: Annexures
Vv VAIBHAV GLOBAL LIMITED
Slide 46: Digital Commerce Markets
Digital Commerce Markets Industry Trends US US UK 15.4% 15.9% ▪ Surge in e-commerce 14.0% 14.6% 14.5% 30.9% activities driven by increased 27.8% 26.5% 26.6% 11.0% consumer confidence and 19.1% 26.3% convenience UK ▪ Online sales growth slowed due to customer skepticism 2019 2020 2021 2022 2023 H1'24
Slide 47: Sustainability Initiatives
Sustainability Initiatives ENERGY WATER Solar power capacity Commissioned 3 Rainwater Solar Generated 16.7 Mn kWh units 1,100 KL Storage Tanks 3.23 mw since inception EV 184 two-wheelers & 4 four- wheelers for employees’ commute. Replaced 12 buses till date 6,100 KL Annual Rainwater Harvesting Capac
Slide 48: Growth With Responsibility
Growth With Responsibility ▪ Till date Served 90 million meals to underprivileged children through flagship One for One Program, ‘Your Purchase Feeds…’ ▪ Local charity partners ✓ Akshaya Patra in India ✓ No Kid Hungry and Backpack Friends in US ✓ Magic Breakfast & Felix Project in UK ▪ Serving ~57k
Slide 49: Robust Corporate Governance
Robust Corporate Governance Awards & Accolades Q1 FY25 ~Rs. 25 crores India Risk Management Award from ICICI Lombard & CNBC-TV18 LEED’s PLATINUM & GOLD Certification 90% Dividend Payout (First interim dividend for FY24-25) Dividend Payout Policy ‘Net Zero Energy Building’ certified ▪ 20-30% of conso
Slide 50: Shareholding Pattern as on 30th June 2024
Shareholding Pattern as on 30th June 2024 Holding as on Key Shareholders Shareholding Pattern 30th-June-24 Nalanda India Fund Limited 9.3% Malabar India Fund Limited 6.5% 17.64% Promoter & Promoter 2.02% Group Taiyo Greater India Fund 2.6% 1.89% Foreign Institutions (FPI, FII) & NRI Domestic Institi
Slide 51: Vaibhav Global Limited
Company: Investor Relations Advisors: Vaibhav Global Limited Adfactors PR Pvt. Ltd. Nitin Panwad, Group CFO Amit Sharma Nitin.panwad@vglgroup.com Amit.Sharma@adfactorspr.com Prashant Saraswat Disha Shah Head-Investor Relations Disha.shah@adfactorspr.com VAIBHAV GLOBAL LIMITED Prashant.saraswat@vglgr