Credo Brands Marketing Limited · NSE:MUFTI
Credo Brands Marketing — H1 FY24 Earnings Presentation
40 slides from Credo Brands Marketing's earnings presentation, Jan 16, 2024
Slide 1: Credo Brands Marketing Limited Investor Presentation
Credo Brands Marketing Limited Investor Presentation January’24
Slide 2: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Credo Brands Marketing Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitatio
Slide 3: Q2 & H1 FY24 Financial Highlights
Q2 & H1 FY24 Financial Highlights
Slide 4: MD's Comments
MD’s Comments Commenting on the Result, Mr. Kamal Khushlani, Chairman & MD, Credo Brands Marketing Limited said “We at Mufti thank the investor community for the tremendous support shown during the IPO. Public Listing is a proud moment for of us and this will provide a healthy visibility to the bran
Slide 5: Robust Q2 FY24 Operational & Financial Performance
Robust Q2 FY24 Operational & Financial Performance Revenue from Operations Gross Profit EBITDA Profit After Tax Rs. 165.6 crores Rs. 95.3 crores Rs. 56.8 crores Rs. 28.0 crores 16% 16% 11% 8% Sales Mix (Q2 FY24) Gross Profit Margin EBITDA Margin PAT Margin Product Mix (Q2 FY24) 1.5% 1.7% 1.2% 18.0%
Slide 6: Robust H1 FY24 Operational & Financial Performance
Robust H1 FY24 Operational & Financial Performance Revenue from Operations Gross Profit EBITDA Profit After Tax Rs. 284.1 crores Rs. 161.8 crores Rs. 87.1 crores Rs. 36.5 crores 21% 19% 8% 0.2% Sales Mix (H1 FY24) Gross Profit Margin EBITDA Margin PAT Margin Product Mix (H1 FY24) 2.9% 1.0% 2.6% 16.3
Slide 7: Robust Cash Flow & Balance Sheet
Robust Cash Flow & Balance Sheet Working Capital (in Days) Cash Flow from Operations (Rs. Crs.) Inventory Debtors Creditors 163 132 177 72.4 142 139 96 66 64 48 27 29 26 -5.4 Sep-22 Mar-23 Sep-23 -24.7 Mar-23 Sep-22 Sep-23 Return on Capital Employed^ Return on Equity^ (RoCE) (RoE) Net Debt to Equity
Slide 8: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Profit & Loss (in Rs. Crore) Q2 FY24 Q2 FY23 YoY H1 FY24 H1 FY23 YoY Total Revenue 165.6 142.7 16% 284.1 234.9 21% Cost of Materials Consumed 70.3 60.9 122.3 98.5 Gross Profit 95.3 81.9 16% 161.8 136.4 19% Since the Company turned 25 this year, Gross Margin 57.5%
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY AND LIABILITIES (in Rs. Crore) 30-Sept-23 31-Mar-23 ASSETS (in Rs. Crore) 30-Sept-23 31-Mar-23 Equity Non Current Assets Share Capital 12.9 3.2 Property, plant and equipment 66.1 61.5 Other Equity 305.1 278.1 Capital work-in-progress 1.4 0.2 Total Equity 318.0 281.4
Slide 10: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash Flow Statement (in Rs. Crore) H1 FY24 H1 FY23 Net Profit Before Tax 48.3 48.8 Adjustments for: Non - Cash Items / Other Investment or Financial Items 39.1 81.8 Operating profit before working capital changes 87.4 130.6 Changes in working capital -81.1 -144.7 Cas
Slide 11: Credo Brands (MUFTI) listed on NSE & BSE on 27th December 2023
Credo Brands Marketing Limited (MUFTI) was listed on the Stock Exchanges (NSE & BSE) on 27th December 2023
Slide 12: 'Mufti' – Redefining Menswear
‘Mufti’ – Redefining Menswear Creative, Bold and Expressive Clothing for the Contemporary Indian Man Diverse products range under the mid- Strong brand recall amongst customers with a Focus on expressiveness and boldness in our premium to premium price range of clothing database of over 2 million cu
Slide 13: Our Journey
Our Journey ✓ Reinvented the Brand ✓ Opened 200th Store Company listed on Philosophy and launched new BSE and NSE ✓ Awarded the title of logo Badshah-e-Hind - ✓ Opened 300th Store Esteemed King of India at GlamMe Awards ✓ Received Retailer of the Year (Fashion & Lifestyle) award at ✓ Awarded Most Ad
Slide 14: Reinvented Brand Identity
Reinvented Brand Identity THE STORY OF OUR LOGO Signifying and reiterating our status as a home-grown brand of Indian origin Coherent merchandise display at stores to communicate our lifestyle thought to the end consumer 14
Slide 15: Reinvented Merchandise Architecture
Reinvented Merchandise Architecture AUTHENTIC RELAXED URBAN ATHLEISURE Daily Casuals Holiday Casuals Party-Wear Lounge-Wear Increasing our share of customer’s wallet by providing designs suited for specific occasions in our customer’s life 15
Slide 16: Reinvented Retail Identity
Reinvented Retail Identity 16
Slide 17: Company Differentiators
COMPANY DIFFERENTIATORS
Slide 18: Company Differentiators
Company Differentiators 1 2 3 Multi-channel, Pan-India Distribution Wide Range of Products for Multiple Strong Brand Equity with Presence Extending from Major Metros to Tier- Occasions Across Categories 3 Cities 4 5 6 EBOs Prime Distribution Driven Through Longstanding Channel Offering Holistic In-S
Slide 19: 1. Wide Range of Products for Multiple Occasions
1. Wide Range of Products for Multiple Occasions Focus on creativity, expressiveness and boldness in designs to provide a youthful appearance Shirts (1) T-shirts (1) Bottomwear Outerwear WAVG MRP (2) – ₹ 2,481 (3) WAVG MRP (2) – ₹ 2,226 (3) WAVG MRP (2) – ₹ 3,954 (3) WAVG MRP (2) – ₹ 5,520 (3) Among
Slide 20: 2. Strong Brand Equity with Presence Across Categories
2. Strong Brand Equity with Presence Across Categories Recognized brand with 25 years of presence Prominent focus on casual wear in the mid-premium to premium price range in India Share of Men’s Casual Led Western Wear Players in Denim Led Casual Led the Mid Price+ Branded Market – FY2022 3.81% 1.72
Slide 21: 3. Multi-channel having Pan-India Distribution
3. Multi-channel having Pan-India Distribution Retail Touchpoints Sales Mix (H1 FY24) 117 1,807 278 2.9% 11 16.3% EBOs Cities Present MBO LFS 3.3% 52.5% 591 76 Online 106 25.0% 431 Others 253 EBO – Cities Present 12 26 44 226 188 Diversified Presence Across High Streets, Malls & Airports 5 Geographi
Slide 22: 4. EBOs Offering Holistic In-Store Brand Experience
4. EBOs Offering Holistic In-Store Brand Experience and Enhancing Brand Visibility… Avg. Cost of Capex per EBO Avg. Revenue per EBO (Rs. Lakhs) (Rs. Lakhs) 28.5 +30% 75.8 25.6 20.7 55.1 44.8 FY21 FY22 FY23 FY21 FY22 FY23 Avg. Revenue per product Avg. ticket value per bill for sold (Rs.) EBOs (Rs.) E
Slide 23: Evenly spread PAN-India EBO network
… with an evenly spread PAN-India network 404 EBO’s in 226 cities; evenly spread pan-India EBO network Geography Wise Tier Wise Location Wise Top 2* Airports South 2% 15% Tier 3 12% North 26% 29% Next 6** Malls 12% 32% East 19% 16% 66% Tier 1 HighStreets 11% 26% 34% Central West Tier 2 As of Septemb
Slide 24: 5. Scalable and Asset Light Business Model
5. Scalable and Asset Light Business Model Scalable Asset Light Healthy mix of owned and franchisee EBO stores (1) Retailing Added 98 EBOs in last 2.5 years 52 106 130 COCO 31 COFO 15 Store roll-out Sustainable FOFO growth FY22 FY23 H1 FY24 168 Manufacturing Increase or decrease supply based Keeps f
Slide 25: 6. Driven Through Longstanding Relationships with Partners
6. Driven Through Longstanding Relationships with Partners Sourcing Partners Manufacturing Partners Franchisee Partners 48 52% Fabric and accessories suppliers Over 48 of franchisees associated with Mufti Manufacturing Partners for over 5 years 8 years Average association of Top-5 suppliers 8 years
Slide 26: 7. Systems Driven Processes and Analytical Capabilities
7. Systems Driven Processes and Analytical Capabilities Enable Data Based Decision-making Strong In-house Design Competencies To Deliver Innovative And High-quality Products Product Design Procurement Manufacturing Tech-enabled Inventory Business Intelligence Tool Management System ✓ Experienced in-
Slide 27: 8. Financially Stable Business Model With Demonstrated History of Profitable Growth
8. Financially Stable Business Model With Demonstrated History of Profitable Growth … and tight operational control leading to Demonstrated growth in Revenues.. .. with expansion in gross margins high EBITDA margin 48.9% 56.9% 57.5% 19.8% 27.9% 32.9% +43% +55% +84% 498 286 164 341 194 95 245 120 48
Slide 28: 9. Experienced Board of Directors
9. Experienced Board of Directors… • Undergraduate degree in mechanical engineering (IIT Delhi), PGDM (IIM Bangalore), Mr. Kamal Khushlani Mrs. Poonam Khushlani Executive Doctor of PROMOTER, CHAIRMAN AND PROMOTER AND WHOLE TIME Management (Case Western MANAGING DIRECTOR DIRECTOR Reserve University)
Slide 29: Proficient Team Committed to the Brand's Philosophy
…with a Proficient Team Committed to the Brand’s Philosophy Mr. Kamal Khushlani Mrs. Poonam Khushlani Promoter, Chairman & Managing Director Promoter & Whole Time Director Right from Company Inception Right from Company Inception Experience > 30 years Experience > 25 years Mr. Rasik Mittal Mr. Sanja
Slide 30: Prestigious Awards Received by the Company
Prestigious Awards Received by the Company 30
Slide 31: Growth Drivers
GROWTH DRIVERS
Slide 32: Growth Drivers
Growth Drivers 1 2 3 4 5 Leverage technology Expand domestic Enhancement of Deeper penetration Focused expansion to improve supply- store network in brand appeal to grow sales of product portfolio chain management existing and new through focused through online to become a men’s and enhance cities m
Slide 33: Industry Overview
INDUSTRY OVERVIEW
Slide 34: Organized Market Share to Reach ~60% by FY'27 for Men's Apparel
Organized Market Share to Reach ~60% by FY’27 for Men’s Apparel Branded apparel and organized apparel retail as a share of Growing middle class apparel market (Rs Bn) x% CAGR Hou seh old s b y An n u al E arn in gs [# mn ], % of total h ou seh old s <US$ 5K US$ 5 -10K US$ 10-50 K >US$ 50K Branded Ap
Slide 35: India's Predisposition Towards Casual Wear has Grown Exponentially
India’s Predisposition Towards Casual Wear has Grown Exponentially One of the youngest populations globally Causal (1) and formal led play in total men’s western wear market Med ian Age CY202 2 Age Dep en d en cy Ratio (3) Casual Led Play Formal Led Play In Rs Bn 38.4 38.5 64% 59% 54% 3,702 28.7 42%
Slide 36: Historical Financials
HISTORICAL FINANCIALS
Slide 37: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Profit & Loss (Rs. In crore) FY23 FY22 FY21 Revenue from Operations 498.2 341.2 244.8 Raw Material Cost 211.9 147.1 125.0 Gross Profit 286.2 194.1 119.8 Gross Profit Margin 57.5% 56.9% 48.9% Employee Cost 26.8 29.2 21.8 Other Expenses 95.6 69.8 49.5 EBITDA 163.9
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. In crore) FY23 FY22 FY21 Equity & Liabilities (Rs. in crore) FY23 FY22 FY21 Property Plant & Equipment 61.5 40.3 38.7 Share Capital 3.2 3.2 3.2 Capital Work in Progress 0.2 0.6 0.4 Other Equity 278.1 232.5 189.1 Right of Use Asset 173.1 137.1 126.5 Total Equity
Slide 39: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. in crore) FY23 FY22 FY21 Net Profit Before Tax 103.8 47.8 4.0 Adjustments for: Non-Cash Items / Other Investment or Financial Items 64.0 60.8 46.4 Operating profit before working capital changes 167.8 108.7 50.4 Changes in working capital -64.6 -10.6
Slide 40: Thank You!
THANK YOU ! Company: Credo Brands Marketing Limited CIN: U18101MH1999PLC119669 Mr. Rasik Mittal – CFO investorrelations@mufti.in Investor Relations: Strategic Growth Advisors (SGA) CIN: U74140MH2010PTC204285 Mr. Deven Dhruva / Mr. Harsh Shah deven.dhruva@sgapl.net / harsh.shah@sgapl.net Tel: +91 983
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