Metro Brands Ltd. · NSE:METROBRAND
Metro Brands — Q1 FY24 Earnings Presentation
47 slides from Metro Brands's earnings presentation, Aug 1, 2023
Slide 1: Exchange cover letter: Presentation of Investor/Analyst Meet
met ro BRANDS August 1, 2023 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 – Q1FY24
met ro METRO BRANDS LIMITED EARNINGS PRESENTATION – Q1FY24 1st August, 2023
Slide 3: Safe Harbor statement
Safe Harbor statement me~roBRANDS • 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 infor
Slide 4: Agenda
met roBRANDS BRIEF OVERVIEW Q1 FY24 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 5: Our Journey
Our Journey me~ro Acquisition of Cravatex Brands Ltd Launch of Launch of crocs· • Exclusive license for F ll.6 Wl Started first MOCHI MOCHI , ... \), "'\ t~,,- .. , WALKWAY ties up with • Owns sportswear H~TRO Store MBO MBO Hits 200 stores METRO brand ■lilHl/1141 1977 2010 2021 2023 1955 2000 2009 2
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 One Stop Shop for all Footwear Needs PAN India Presence with 766 Stores I 182 Cities I 31 States and UTs (As of Jun’23) West Tier III Metro High Street South 29% 15% cities 55% Jun’23 / (MBO) (MBO) (EBO) (MBO) (EBO) 32% 30% Q1FY24 Airports i Target Customer Family Youth Premium Value
Slide 8: Q1 FY24 Business Highlights
met roBRANDS BRIEF OVERVIEW Q1 FY24 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 9: Q1 FY24 Business Highlights
Q1 FY24 Business Highlights me~roBRANDS Standalone Consolidated In INR Crore Q1 FY24 Q1 FY23 YOY Growth% Q1 FY24 Q1 FY23 YOY Growth% Revenue 556 497 11.7% Revenue 583 508 14.7% EBITDA 194 181 7.5% EBITDA 187 183 2.1% EBITDA% 35.0% 36.4% EBITDA% 32.1% 36.1% PAT 106 103 2.9% PAT 93 106 -11.6% PAT% 19.
Slide 10: Q1 Business Highlights (Standalone)
Q1 Business Highlights (Standalone) me~ro BRANDS Revenue from Operations and Revenue per sq.ft Gross Profit and Gross Margins 5,700 4,900 5,750 5,050 5,000 ♦ ♦ ♦ ♦ ♦ 60.0% 57.5% 59.7% 57.2% 60.0% ♦ ♦ ♦ ♦ ♦ 410 577 556 344 497 514 360 333 463 298 294 310 267 260 210 160 110 60 Q1 FY23 Q2 FY23 Q3 FY23
Slide 11: Q1 Business Highlights (Consolidated)
Q1 Business Highlights (Consolidated) me~ro BRANDS Revenue from Operations Gross Profit and Gross Margins 59.7% 57.4% 59.2% 55.9% 59.1% 599 583 410.00 ♦ ♦ ♦ ♦ ♦ 544 355 344 508 476 360.00 303 304 310.00 273 260.00 210.00 160.00 110.00 60.00 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q2 FY23 Q3
Slide 12: Update on implementation of Bureau of Indian Standards for footwear
Update on implementation of Bureau of Indian Standards for footwear me~ro BRANDS The Department for Promotion of Industry and Internal Trade (DPIIT) issued BIS Quality Control Order (QCO) for footwear which was mandatory from 1st July 2023. The implementation date is now deferred to 1st January
Slide 13: Key business updates – Cravatex Brands Limited
Key business updates – Cravatex Brands Limited me~ro BRANDS Results of Cravatex Brands Ltd incorporated with MBL financials w e.f 1st December 2022 Q4 FY23 In INR Crore Q1 FY24 In INR Crore MBL MBL MBL excluding MBL Cravatex Cravatex excluding Consolidated Cravatex Consolidated Cravatex Revenue from
Slide 14: Year wise Store additions - Standalone
Year wise Store additions - Standalone me~ro BRANDS - Stores - - - - - - 504 +9% 551 +6% 586 +6% 624 +18% 739 +4% 766 - 116 27 766 38 35 -B B B B B B 47 86 419 B Opened^ Closed^ .--------, I Relocation^ I L _______ J 95 10 ,---,I 3 I IL ___ 57 10 ,---,I - I IL ___ 59 24 ,---,I 3 I IL ___ 87 49 ,---,
Slide 15: Profit & Loss Statement (Standalone)
Profit & Loss Statement (Standalone) me~ro BRANDS In INR Crore Particulars Q1 FY24 Q4 FY23 Q1 FY23 FY23 Revenue from Operations 556 514 497 2,052 Other Income 16 19 9 55 Total Income 572 533 506 2,107 EXPENSES Purchases of stock-in-trade 324 199 258 1,017 Changes in inventories of stock in trade (10
Slide 16: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) me~ro BRANDS In INR Crore Particulars Q1 FY24 Q4 FY23 Q1 FY23 FY23 Revenue from Operations 583 544 508 2,127 Other Income 14 19 9 54 Total Income 597 563 517 2,182 EXPENSES Purchases of stock-in-trade 328 220 263 1,066 Changes in inventories of stock in trade (
Slide 17: Metro's Strengths
met roBRANDS BRIEF OVERVIEW Q1 FY24 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 18: 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-channe
Slide 19: 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 of Jun’23) …with diversified presence across regions2 551 586 624 739 766 - -14% --- ----. ----. ----. I ----. Jammu & Ka llunlr 08 ) DUR 1
Slide 20: Pivoting from Offline to Omni-channel retailer
2 Pivoting from primarily "Offline" to an "Omni-channel" enabled footwear and accessories retailer me~ro BRANDS E-commerce – Online & Omnichannel “Highest number of Instagram Followers among key footwear Majority of online business comes through leading e-commerce retailers in India” (CRISIL) 2.2%
Slide 21: 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) me~ro BRANDS Product presence across multiple categories through Own and Third party brands Own Brands ■ Casual ■ Formal Sports ■ Accessories Third Party Bra
Slide 22: 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) me~ro BRANDS Own Brands contribute ~ 70-75% of total store product sales at MBOs Targeting Mid and Premium Segment through 5 different Brand Outlets Average
Slide 23: 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) me~ro RANDS Repeat Sales to Members of Loyalty programs % Total Product Sales 0 1 Loyalty programs have been digitized and thus provide insights into Custome
Slide 24: Asset light business with an efficient operating model
4 Asset light business with an efficient operating model leading to sustained profitable growth BRANDS 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 margin
Slide 25: Efficient operating model through deep vendor engagements and TOC based supply chain
5 Efficient operating model through deep vendor engagements and TOC based supply chain me~roBRANDS 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 Optimum capital employed • N
Slide 26: Platform of choice for third party brands looking to expand in India
6 Platform of choice for third party brands looking to expand in India me~ro BRANDS 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 incu
Slide 27: Board of Directors
7 Board of Directors1 me~ro BRANDS 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 bache
Slide 28: Strong promoter background and experienced management team
7 Strong promoter background and an experienced and entrepreneurial management team with a proven track record me~ro BRANDS 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 Ov
Slide 29: Strong track record of growth, profitability and financial discipline
8 Strong track record of growth, profitability and financial discipline me~ro BRANDS Revenue from Operations Gross Profit and Gross Margins EBITDA and EBITDA Margins 17,500 16,800 10,150 15,450 19,800 54.9% 55.6% 54.9% 57.9% 58.1% 27.7% 27.5% 21.5% 30.6% 32.0% ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ FY 19. f'
Slide 30: Levers of Growth
met roBRANDS BRIEF OVERVIEW Q1 FY24 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 31: Key Strategies
Key Strategies me~ro 1 3 5 2 4 Store Inorganic E-Commerce Expansion Plans Opportunities Expansion Leverage multi-channel Evaluation basis Target to open 200 Leverage existing Expand Portfolio of platform targeted returns, stores over next 2 years capabilities to increase Accessories and operational
Slide 32: To Summarize…
To Summarize…. me~ro BRANDS 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 31
Slide 33: Sustainability Initiatives & Others
met ro BRANDS BRIEF OVERVIEW Q1 FY24 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 34: Sustainability Initiatives (1/7)
Sustainability Initiatives (1/7) me~ro BRANDS Environment Processing of Old & Discarded Footwear (ODF) in an eco-friendly manner It is our long-term goal to “recycle a pair for every pair we sell”. Under this project, ODF is collected & then sorted, cut, and again sorted material wise as below: •
Slide 35: Sustainability Initiatives (2/7)
Sustainability Initiatives (2/7) me~ro BRANDS Environment Sustainable Footwear and Packaging • Launched vegan friendly footwear range – • Nature Pro Collection: 11 PET bottles • Our packaging boxes use filler paper made Tie-Dye Collection, made with modern, recycled to get 1 pair of shoes. of recycl
Slide 36: Sustainability Initiatives (3/7)
Sustainability Initiatives (3/7) me~ro BRANDS Environment Solar rooftops at our warehouses Solar rooftops installed at both of our warehouses with a combined capacity of 240 KW. The solar rooftops generated 221 MWh of power. Distributed more than 18,000 footwear pairs to the less fortunate rural sch
Slide 37: Sustainability Initiatives (4/7)
Sustainability Initiatives (4/7) me~roBRANDS Health & Well-being Launched project “Ek Kadam Aage” to empower 150 Mumbai Railway Station based Shoe Shiners covering the aspects of their livelihood, healthcare and financial literacy trainings Through another project, we are working to create aware
Slide 38: Sustainability Initiatives (5/7)
Sustainability Initiatives (5/7) me~roBRANDS Education We contributed towards providing access to quality education to 500 underprivileged girls from Bharuch, Gujarat and helped them complete schooling with dignity. 37
Slide 39: Sustainability Initiatives (6/7)
Sustainability Initiatives (6/7) me~ro BRANDS Education Sponsored 230 underserved adolescents to develop We supported 32 Social Entrepreneurs to grow in their leadership skills in them through football, with a focus on leadership skills through incubation support, immersive residential breaking gend
Slide 40: Sustainability Initiatives (7/7)
Sustainability Initiatives (7/7) me~roBRANDS Education We supported 72 children of under privileged families of Supported as a co-funder to transform learning, teaching Maharashtra and Gujarat region by providing them an and leading school improvement in Bihar. environment to excel in their academic
Slide 41: Awards & Recognition – (1/2)
Awards & Recognition – (1/2) me~ro BRANDS IMAGE Retail Awards Forbes India Leadership Awards 2022 IMAGE Fashion Awards Most Admired Footwear Retailer ,2023 Farah Malik Bhanji and Alisha Malik won the GenNext India’s Most Admired Retailer, 2022 Entrepreneur award for a successful expansion and listin
Slide 42: Awards & Recognition – (2/2)
Awards & Recognition – (2/2) BRANDS PETA India – Vegan Fashion Awards DMA Asia Sparkies Awards Image Business Of Fashion Best Vegan Shoe Line,2022 Best Conversion Campaign – SEO,2022 Fashion Brand Icon,2022 – Nissan Joseph, CEO Recognition: Leadership Technology Excellence Awards MYNTRA – Tech Threa
Slide 43: Appendix: Industry Overview
met roBRANDS BRIEF OVERVIEW Q1 FY24 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 44: Industry Overview (1/2)
Industry Overview (1/2) me~ro BRANDS Low per capita footwear consumption in India as compared to other countries Per Capita footwear consumption India 8.1 6.4 6.2 - 6.2 Per Capita Consumption of Footwear (2019) 5.8 Per capita consumption of footwear (pairs) 1.9 2.0 – 2.1 I I I I 1.6 ---1---1---1---1
Slide 45: Industry Overview (2/2)
Industry Overview (2/2) me~ro BRANDS - - - Organized Retail Penetration - Footwear Segment wise market composition Category wise market composition In Percentage (%) 23% 31% 35% 33% 38% - - - 6% 9% 23% 7% 11% 27% 8% 13% 28% 10% 30% 60% 10% 32% 10% 34% 62% 56% 58% 56% 51% FY15 FY20 FY21 FY22P FY25P F
Slide 46: -M:TRO
-M:TRO --- --- - ·- -- -- ·- · . --, ---~ ~
Slide 47: Thank You
i, Hy MAKERS (OF THANK YOU