Shoppers Stop Limited · NSE:SHOPERSTOP
Shoppers Stop — Q4 FY2024 Earnings Presentation
54 slides from Shoppers Stop's earnings presentation, Apr 30, 2024
Slide 1: Press Release and Investor Presentation cover letter to exchanges
SHOPPERS STOP SEC/19/2024-25 April 29, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (East), Mumbai 400 001. Mumbai 400 051. Stock Code : 532638 Stock Symbol : SHOPERSTOP Dear Sir / Madam, Sub.: P
Slide 2: Press Release: Q4 Revenue Rs 1000 Cr, up 9%
Press Release for immediate distribution Shopper Stop reports Q4 Revenue of Rs 1000 Cr, growth of 9% YoY and EBITDA of Rs 199 Cr, up 11% Annual Revenue of Rs 4213 Cr, + 5% and EBITDA Rs 767 Cr, +2% (GAAP) Sales Rs 1,000, +9% Beauty outperformed +7%, led by Fragrance +24%; Overall Mix at 18% St
Slide 3: Management comments and strategic pillars performance
During the quarter the sales grew by 9% and EBITDA at Rs.199 Crs. Our EBITDA was impacted by onetime investments in Beauty and write off of inventory aggregating to Rs.14 Crs during the quarter. In this quarter, we opened 7 Department, 3 Beauty and 12 Intune stores. Our investments in opening new st
Slide 4: Note and About Shoppers Stop Limited
Note: We have published a detailed Non-GAAP and GAAP Income Statement. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Slide 5: Performance Highlights Q4 FY24
- SHOPPERS STOP : | Performance = Highlighis QA FY2A
Slide 6: Key Highlights
01KEY HIGHLIGHTS 02 STRATEGIC PILLARS 03 FINANCIALS
Slide 7: Customer, Industry, Expansion
Customer Industry Expansion – Premiumization driving the – Discretionary continues to be – Indian Malls expanded 3.1M sq ASP by 5% to 7%. Change in impacted, albeit positive ft in Oct-Dec 2023* customers preferences developments from March 24 – Vacancies in superior grade towards premium sustained –
Slide 8: Sales Expansion (Non-GAAP)
(Non-GAAP) Sales Expansion – Overall - Rs 1,232 Crs, +5%, – Launched 22 Stores during the LTL Flat quarter – Beauty Rs.218 Crs +7%, driven – 7 Departmental Stores by Fragrance +24% aggregating to 15 in FY24 – Intune Rs.16 Crs. – 12 Intune Stores (22 in FY24) – ATV +8% (Rs 4,581 vs Rs 4,236) due to p
Slide 9: Store Count and FY24 Additions
Store Count FY24 Addition As on Format Guidance Actual 31st Mar24 Department 15 15 112 Beauty SSBeauty 4 4 13 Area as on 31st Mar’24 4.3M sq.ft. Brands 12 12 74 INTUNE 24 22 22 HomeStop 1 1 7 Airport 1 21 Total 56 55 249 Stores Opened in Q4 22 (7 Department, 12 INTUNE and 3 Beauty) Renovations In Q4
Slide 10: Department Store Additions in FY24 and Last 5 Years
Additions in FY24 – Expansion in Q4 – Opened 7 stores during the quarter; Added 5 new cities – Expansion during the Year 15 – Opened 15 Stores during the Year, Added 10 new cities 7 0 4 4 0 Q1 Q2 Q3 Q4 FY24 Additions in Last 5 Years 15 11 11 8 0 1 FY20 FY21 FY22 FY23 FY24 Kanpur Kanha Galaxy 6
Slide 11: Beauty Store Additions in FY24 and Last 5 Years
Additions in FY24 – Expansion in Q4 – Opened Largest Beauty store in the country (9K sq.ft.) at Quest Mall, Kolkata. KPI’s in line with Budget – Opened 2 Brand EBOs at Mall of Asia, Bengaluru 16 – Expansion during the Year 6 4 – Opened 4 SSBeauty and 12 Brand EBOs 3 3 Q1 Q2 Q3 Q4 FY24 -5 Additions i
Slide 12: SSBeauty Store launched at Quest Mall, Kolkata
– 9K sq ft SSBeauty Store launched at Quest Mall, Kolkata – GUINNESS WORLD RECORD for completing the Most Makeovers in 1 Hour – Largest assortment with 91 Brands, 8900 SKUs – Services - Facial Treatment, Nail Bar, Hair services, Virtual Try-On, Skin Analyzer and Fragrance Bar 8
Slide 13: INTUNE: Fast Expansion Continues
EVA MALL, Vadodara Fast Expansion continues – 12 Stores Opened during the Quarter – 22 Stores in 8 Months since Inception Planning to open 60 stores in FY25, – 9 Cities presence with 12 in Q1 9
Slide 14: Q4 Non-GAAP and GAAP summary
Particulars Non GAAP %Sales GAAP %Sales Revenue 1,232 1,000 EBITDA 37 3.4% 199 19.9% PBT 5 0.5% 28^ 2.8% PAT 4 0.4% 21 2.1% ^GAAP PBT includes one-off of Rs.24 Crs in Other income on account of reversal of ROU Liability due to store closure offset by impairment of ROU Assets on 3 stores by Rs. 6 Crs
Slide 15: Q4 EBITDA +6% excluding Exceptional Items
Q4 EBITDA +6% excluding Exceptional Items Investments in New Business and one-off (largely inventory write-off) impacted Profitability. Save this, Q4, EBITDA would have increased by +6% Particulars Non GAAP GAAP EBITDA (Reported) FY24 (A) 37 199 New Businesses INTUNE 4 4 SSBeauty.in 4 4 One off's In
Slide 16: Non-GAAP Q4 Sales, Margin, EBITDA and PBT
Sales Margin* +5% 140 0 40. 0% 130 0 500 39. 0% 120 0 110 0 100 0 37.1% 36.7% 38. 0% 35.9% 400 900 37. 0% 34.9% 800 1232 700 36. 0% 1175 300 600 916 890 384 399 35. 0% 500 400 282 281 34. 0% 200 300 200 33. 0% 100 0 100 32. 0% Q4FY20 Q4FY22 Q4FY23 Q4FY24 Q4FY20 Q4FY22 Q4FY23 Q4FY24 EBITDA 10. 0% PBT
Slide 17: GAAP Q4 Sales, Margin, EBITDA and PBT
140 0 Sales Margin 45. 0% 43.2% 130 0 +9% 500 40.5% 44. 0% 120 0 110 0 43. 0% 100 0 400 900 42. 0% 40.0% 800 700 600 300 40.1% 41. 0% 500 916 1000 396 405 40. 0% 709 710 400 284 285 39. 0% 300 200 200 38. 0% 100 0 100 37. 0% Q4FY20 Q4FY22 Q4FY23 Q4FY24 Q4FY20 Q4FY22 Q4FY23 Q4FY24 EBITDA PBT 19.9% 24
Slide 18: FY24 Non-GAAP and GAAP summary
Particulars Non GAAP %Sales GAAP %Sales Revenue 5,228 4,213 EBITDA 226 4.9% 767 18.2% PBT 76 1.7% 100^ 2.4% PAT 56 1.2% 73 1.7% ^GAAP PBT includes one-off of Rs.24 Crs in Other income on account of reversal of ROU Liability due to store closure offset by impairment of ROU Assets on 3 stores by Rs. 6
Slide 19: Non-GAAP FY Sales, Margin, EBITDA and PBT
Sales Margin +3% 37.5% 37.2% 190 0 38. 0% 550 0 540 0 180 0 530 0 520 0 170 0 37. 5% 510 0 36.9% 500 0 490 0 160 0 480 0 470 0 460 0 150 0 37. 0% 450 0 440 0 140 0 430 0 420 0 410 0 5228 130 0 36. 5% 1712 400 0 5066 35.9% 1675 390 0 120 0 380 0 370 0 4385 1425 360 0 110 0 36. 0% 350 0 340 0 330 0 10
Slide 20: GAAP FY Sales, Margin, EBITDA and PBT
Sales Margin 41.8% 40.8% 190 0 43. 0% 41.8% 500 0 180 0 490 0 480 0 +5% 470 0 170 0 42. 0% 460 0 450 0 440 0 430 0 160 0 420 0 410 0 400 0 150 0 41. 0% 390 0 380 0 370 0 140 0 360 0 350 0 340 0 130 0 40. 0% 1717 330 0 1671 320 0 4213 39.7% 310 0 120 0 3998 300 0 290 0 1413 280 0 110 0 39. 0% 270 0 3
Slide 21: Items per Transaction, ATV and ASP
(Offline Only) Items per Txn. (Nos.) ATV (Rs/-) 650 0 640 0 630 0 620 0 610 0 600 0 590 0 580 0 570 0 560 0 550 0 +8% 540 0 530 0 520 0 510 0 500 0 490 0 480 0 +2% 470 0 460 0 450 0 440 0 430 0 420 0 410 0 400 0 390 0 380 0 370 0 360 0 350 0 340 0 330 0 320 0 310 0 300 0 290 0 280 0 270 0 4581 260 0
Slide 22: Strategic Pillars
01 KEY HIGHLIGHTS 02 STRATEGIC PILLARS 03 FINANCIALS
Slide 23: Strategic pillar contribution
9.9M Rs 218 Crs Rs 145 Crs 22 Stores in Q4 FIRST CITIZEN BEAUTY PRIVATE BRANDS EXPANSION YTD 78% 18% 12% 55 Stores Contribution 19
Slide 24: First Citizen sales contribution and engagement
Sales contribution First Citizen Total Mix% Gr% Repeat% Gr% Overall Sales 78% Flat 65% Flat Black Card Members – Contribution 12% to Overall Sales – Sales Growth +14% Customer Engagement – Launched Playbook for Regional Festivals – Personal theme based invites to Members – Online Gamification used a
Slide 25: Private Brands sales and contribution
Sales Rs.145 Crs – PB Contribution – Overall 12% – Apparels 17% – “STOP” Men's formal +22% (LTL +17%) – Advancement of EOSS and soft sales in Western Wear/Mens Category continue to impact performance – Higher Trading Margins through Full price sale from Feb’24 – 500+ options in April to induce fresh
Slide 26: INTUNE store additions by region
Store Additions Region Market Q4 YTD AP/TL 3 7 Karnataka 3 5 South Kerala 1 1 –Added 3 New Cities in Q4 Total 7 13 –Total 9 Cities Maharashtra 4 6 West Gujarat 1 3 Total 5 9 Grand Total 12 22 R Mall, Thane 22
Slide 27: INTUNE key insights and KPIs
Key Insights – Strong delivery on Brand Promises – 25% Kids sales mix strengthening our “Kids First” positioning – 55%-45% Classy- Trendy mix strengthening our “Fashion For All” positioning KPIs – Sale of Rs 16 Crs in Q4; YTD 36 Crs – Store EBITDA Positive – SPSF circa Rs 12K psf – Conversion is on
Slide 28: Beauty sales and business network
Sales Rs. 252 Crs. +24% Rs. 218 Crs. +7% (excl. Distribution) Beauty Business Network Offline Count Department stores 112 – Strong Momentum sustained in Q4 EBOs (incl. SSBeauty) 87 Shop-in-shop 57 – Customer engagement with 220K Makeovers, Online – Conversion 53% and Sales generated Rs 44 Crs Shoppe
Slide 29: Beauty Distribution sales
Sales Rs. 42 Crs (YTD Rs.119 Crs) EBITDA Positive − Distribution network expanded to 436 doors from 334 − Retailing brands across 20 different retailers − Brands portfolio expanded to 20 brands with onboarding; Select City Mall, New Delhi – Fragrance brand “Maison Margiela ” – Makeup brand “Note Cos
Slide 30: Beauty brand portfolio
BRAND PORTFOLIO 3 VIKTOR®ROLF MMi VALENTINO GIORGIO. ARMANI = : . (77) FRAGRANCE BANANA REPUBLIC Maison Margiela {telzes. Cologne RALPH LAUREN MUGLER AZZARO PRADA oH, skINcaRE CLARINS ]'RI! © earthi LOCAL Mees GIORGIO ARMANI PRADA l MAKEUP NOTE VALENTINO
Slide 31: New store photos: Kanha Galaxy
\ \ erst eo OO if 4 (a) || ame | ama Eh oP iy ' wd a | \ = ay; | I + i i ae ah | ri “= “ 1 CINdNV™ 27 KANHA GALAXY
Slide 32: New store: Kota
KOTA = SHOPPERS STOP~ 28
Slide 33: New store: Agartala
AGARTALA SHOPPE} a ew * POLO TOWER 29
Slide 34: New store: Meerut
MEERUT SHOPPERS STOP = eS ei es PVS MALL
Slide 35: New store: Pune
PUNE NIBM, THE ARC
Slide 36: New store: Vadodra
VADODRA AGORA MALL 32
Slide 37: New store: Shillong
SHILONG — SHOPPERS STOP ty tess } me 33
Slide 38: New store: Bengaluru
BENGALURU ESTEE LAUDER ESTEE LAUDER JO MALONE MALL OF ASIA 34
Slide 39: Renovated store: Chennai Chetpet
CHENNAI CHETPET (Renovaied) 35
Slide 40: Renovated store: Kolhapur
KOLHAPUR (Renovaied)
Slide 41: Financials
01 KEY HIGHLIGHTS 02 STRATEGIC PILLARS 03 FINANCIALS
Slide 42: Q4 FY24 vs Q4 FY23 sales, margin, EBITDA
Vs Q4 FY23 (Rs Crs) +5% (40 bps) (34%) Sales Gross Margin EBITDA Non GAAP 1232 399 37 GAAP 1000 405 199 +9% (270 bps) 11% 38
Slide 43: FY24 vs FY23 sales, margin, EBITDA
Vs FY23 (Rs Crs) +3% (40 bps) (30%) Sales Gross Margin EBITDA* Non GAAP 5228 1712 226 GAAP 4213 1717 767 +5% (100 bps) 2% *FY23 numbers include reversal of Interest on GST Rs.17 Crs in other income 39
Slide 44: Q4 Non-GAAP and GAAP income statement
Particulars Non - GAAP Financials GAAP Financials Rs. in Crs. FY24 FY23 Gr% FY24 FY23 Gr% Gross Revenue 1232 1175 5% 1126 1033 9% Net Revenue 1086 1036 5% 1000 916 9% Other Income 30 28 8% 35 22 56% Total Revenue 1116 1063 5% 1034 939 10% Margin 399 384 4% 405 396 2% Margin% 36.7% 37.1% -
Slide 45: FY24 Non-GAAP and GAAP income statement
Particulars Non - GAAP Financials GAAP Financials Rs. in Crs. FY24 FY23 Gr% FY24 FY23 Gr% Gross Revenue 5228 5066 3% 4740 4501 5% Net Revenue 4607 4464 3% 4213 3998 5% Other Income 96 95* 2% 56 56* -1% Total Revenue 4704 4560 3% 4269 4054 5% Margin 1712 1675 2% 1717 1671 3% Margin% 37.2%
Slide 46: Balance sheet and net cash
Particulars (Rs. In Crs.) Mar’24 Mar’23 Net worth 785 765 Loan Fund 125 104 Total Liabilities 910 869 Fixed Assets + Lease Deposit 864 795 Investments 59 77 Inventory* 1617 1488 Other Assets 552 525 Net Cash Rs. in Crs Total Current Assets 2070 1883 Cash & Investments 16 Trade Creditors Goods* 1678
Slide 47: Cash flow
Particulars Mar’24 Mar’23 Cash Profit from Operations (after tax) 222 321 Changes in Working Capital -60 -124 Cash generated from Operations 162 197 Fixed Assets /Reduction in Capex Creditors* -211 -191 Cash generated from Operations -49 7 Redemption of Investments (Net) 18 87 Cash post Investing A
Slide 48: Outlook and Priorities
Outlook Priorities – India sustaining the tag of “Fastest growing – Grow the “Core”; will continue to dwell on Economy”; Expecting a consumption led Demand “Premiumization”, expect the ATV and ASP to grow Growth by mid-single digits – Government spending on infrastructure and other – Strategic prior
Slide 49: Annexures
ANNEXURES
Slide 50: Q4 Non-GAAP to GAAP reconciliation
Particulars Non GAAP GAAP Rs. in Crs. FY24 FY23 Gr% FY24 FY23 Gr% Gross Revenue 1232 1175 5% 1126 1033 9% Net Revenue 1086 1036 5% 1000 916 9% Other Income 30 28 8% 35 22 56% Total Revenue 1116 1063 5% 1034 939 10% Margin 399 384 4% 405 396 2% Margin% 36.7% 37.1% -40 Bps 40.5% 43.2% -270 B
Slide 51: FY24 Non-GAAP to GAAP reconciliation
Particulars Non GAAP GAAP Rs. in Crs. FY24 FY23 Gr% FY24 FY23 Gr% Gross Revenue 5228 5066 3% 4740 4501 5% Net Revenue 4607 4464 3% 4213 3998 5% Other Income 96 95* 2% 56 56* -1% Total Revenue 4704 4560 3% 4269 4054 5% Margin 1712 1675 2% 1717 1671 3% Margin% 37.2% 37.5% -40 Bps 40.8% 41.8%
Slide 52: Shoppers Stop at a glance as on 31st March 2024
As on 31 st Mar’24 249 Stores 9.9M 800+ FIRST CITIZENS BRANDS 12% Mix 18% Mix PRIVATE BEAUTY BRANDS 4.3 M 62 SQUARE FEET CITIES AREA 11.6 Mn CUSTOMER ENTRY in Q4 (1) 19.8K TALENT POOL 1 . I n c l u d e s B r a n d s t a f f 48
Slide 53: Forward-looking statements
Certain statements in this release concerning our future growth prospects are forward-looking statements within the meaning of applicable securities laws and regulations, and which involve number of risks and uncertainties, beyond the Control of the company, that could cause actual results to differ
Slide 54: Investor contact
In case of any clarifications please contact on investor@shoppersstop.com