Metro Brands Ltd. · NSE:METROBRAND
Metro Brands — FY2022 Earnings Presentation
45 slides from Metro Brands's earnings presentation, May 20, 2022
Slide 1: Metro Brands exchange filing cover letter
metro BRANDS May 20, 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, Sc
Slide 2: Metro Brands Limited Earnings Presentation – FY2022
METRO BRANDS LIMITED EARNINGS PRESENTATION – FY2022 20th May, 2022
Slide 3: Safe Harbor statement
Safe Harbor statement • 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 information set o
Slide 4: Agenda: Brief Overview
BRIEF OVERVIEW Q4 & FY22 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 5: MBL stands tall with a presence across 4 formats
Our Journey Launch of Launch of Launch of 1st Started first MOCHI ties up with EBO 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 • Hits 600 stores • Listed on BSE, NSE MBL st
Slide 6: 65+ years of Market Presence
65+ years of Market Presence 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 efficient oper
Slide 7: Brief Overview
Brief Overview One Stop Shop for all Footwear Needs PAN India Presence with 624 Stores I 142 Cities I 30 States and UTs (As on Mar’22) Tier III West Metro High Street 11% Mar’22 / South 30% cities 54% (MBO) (MBO) (EBO) (MBO) FY22 32% 31% Target Value Airports Family Youth Premium 1% Location Custome
Slide 8: Q4 & FY22 Business Highlights
BRIEF OVERVIEW Q4 & FY22 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 9: Q4 FY22 Business Highlights
Q4 FY22 Business Highlights Standalone In INR Crore Consolidated In INR Crore Q4 FY22 Q4 FY21 YOY Growth% Q4 FY22 Q4 FY21 YOY Growth% Revenue 396 318 24.5% Revenue 403 319 26.3% EBITDA 128 88 45.5% EBITDA 130 85 53.5% PAT 68 45 50.7% PAT 70 41 67.8% Business Highlights ❖ Company registered robust sa
Slide 10: Q4 & FY22 Business Highlights (Consolidated)
Q4 & FY22 Business Highlights (Consolidated) Q4 FY22 YOY Analysis Revenue from Operations Gross Profit and Gross Margins EBITDA and EBITDA Margins PAT and PAT Margins 403 54.8% 57.3% 32.3% 17.2% 319 26.6% 13.0% 231 130 175 70 85 41 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Rev
Slide 11: Other business updates
Other business updates 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 in the initial few weeks of store operations. ❖ We intend to open 5 Fitflop stores in FY22-23. Wa
Slide 12: Other business updates
Other business updates GST rate was increased for footwear < Rs 1000 from 5% to 12% (effective 1st Jan22) ❖ No major impact seen – As less than 15% of our range (on closing stock basis) is below MRP Rs 1000. ❖ For Walkway (our value price range brand) - Appropriate measures were initiated in Q3 to p
Slide 13: Year wise Store additions
Year wise Store additions Stores 504 +9% 551 +6% 586 +6% 624 Opened 95 57 59 87 Closed 10 10 24 49 49 store closures includes: • 12 stores which were relocated to better locations. • 21 Walkway Shop in Shops FY19 FY20 FY21 FY22 (SIS) closed in Q4. Metro 209 218 219 231 Mochi 136 145 145 162 Walkway
Slide 14: Profit & Loss Statement (Standalone)
Profit & Loss Statement (Standalone) In INR Crore Particulars Q4 FY22 Q3 FY22 Q4 FY21 FY22 FY21 Revenue from Operations 396 476 318 1,312 789 Other Income 13 12 10 58 79 Total Income 409 488 328 1,371 867 EXPENSES Purchases of stock-in-trade 202 244 131 684 316 Changes in inventories of stock in tra
Slide 15: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) In INR Crore Particulars Q4 FY22 Q3 FY22 Q4 FY21 FY22 FY21 Revenue from Operations 403 484 319 1,343 800 Other Income 13 12 10 59 78 Total Income 417 496 329 1,402 879 EXPENSES Purchases of stock-in-trade 206 250 134 700 274 Changes in inventories of stock in t
Slide 16: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Balance Sheet In INR Crore As at As at As at As at Particulars Particulars March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021 Non-current assets Equity Property, plant and equipment 235 220 Equity share capital 136 133 Capital work-in-progress 6 4 Other equity 1
Slide 17: Cash Flow statement (Consolidated)
Cash Flow statement (Consolidated) In INR Crore For the year ended For the year ended Particulars March 31, 2022 March 31, 2021 Cash flow from Operating Activities Profit/(loss) before tax for the year 283 85 Add: Non-cash items 134 93 Operating profit before working capital changes 417 177 Movement
Slide 18: Metro's Strengths
BRIEF OVERVIEW Q4 & FY22 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 19: Our Key Strengths
Our Key Strengths 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 footwear & accessories retailer 3 Wide range of brands and products catering to all occasions across age
Slide 20: 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 PAN India Network of Retail Outlets (as at Mar’22) …with diversified presence across regions2 504 551 586 624 12% 14% 13% 14% 13% 16% 13% 15% 22% 21% 23% 21% 24% 22% 25% 23% 31% 31% 32% 31
Slide 21: Pivoting to an Omni-channel footwear retailer
2 Pivoting from primarily "Offline" to an "Omni-channel" enabled footwear and accessories retailer “Highest number of Instagram 1.7% 2.5% 7.3% 8.4% Followers among key footwear ❖ Majority of online business comes through leading e-commerce retailers in India” (CRISIL) 110 marketplaces (Present on 6
Slide 22: 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 23: 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% of total store product sales at MBOs Targeting Mid and Premium Segment through 4 different Brand Outlets Average Realization Per
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: Promoters and Key Managerial Personnel
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 30: 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 31: Levers of Growth
BRIEF OVERVIEW Q4 & FY22 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 32: 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 33: 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 32
Slide 34: Sustainability Initiatives & Others
BRIEF OVERVIEW Q4 & FY22 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 35: 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 36: 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 37: 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 38: 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 39: Awards & Accolades (1/2)
Awards & Accolades – (1/2) Farah Malik Bhanji and Alisha Malik won the GenNext Entrepreneur Farah Malik Bhanji featured on the Forbes’ Asia’s Power award at Forbes India Leadership Awards 2022 for a successful Businesswomen 2021 38 expansion and listing at the markets in 2021.
Slide 40: Awards & Accolades (2/2)
Awards & Accolades – (2/2) 2022 2021 2021 India Retail Champions Award { RAI } India Retail Champions Award { RAI } IMAGES RETAIL AWARDS Footwear category Footwear category Most Admired Retailer Tech Implementation 2021 MAPIC India Awards 2021 Most admired retailer of the year- Franchise India Award
Slide 41: Appendix: Industry Overview
BRIEF OVERVIEW Q4 & FY22 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 42: 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 43: 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 44: Slide 44
Slide 45: Thank You
THANK YOU