Metro Brands Ltd. · NSE:METROBRAND
Metro Brands — Q3 FY2022 Earnings Presentation
39 slides from Metro Brands's earnings presentation, Jan 15, 2022
Slide 1: Exchange cover letter for investor presentation
January 15, 2022 To, To, The Manager The Manager Listing Department Listing Department BSE Limited, National Stock Exchange of India Ltd, Phiroze Jee Jee Bhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Dalal Street, Mumbai – 400001 (E) Bandra Kurla Complex, Bandra (East), Maharashtra,
Slide 2: Metro Brands Limited Earnings Presentation – Q3 & 9M FY2022
METRO BRANDS LIMITED EARNINGS PRESENTATION – Q3 & 9M FY2022
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: Brief Overview
BRIEF OVERVIEW Q3 & 9M FY22 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 5: Our Journey: 4 formats, 629 stores
Our Journey Launch of Launch of Started first MOCHI ties up with Store MBO MBO Hits 200 stores METRO Hits 550 stores 1977 2010 2021 1955 2000 2009 2012 2015 2020 Incorporation of Launch of • Exclusive the Company E-commerce, tie up with Hits 100 stores • Hits 600 stores • Listed on BSE, NSE Today ME
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 629 Stores I 140 Cities I 30 States and UTs (As on Dec’21) Tier III Metro High Street West 11% Dec’21 / 9M South cities 52% (MBO) (MBO) (EBO) (MBO) 32% FY22 31% 33% Target Value Airports Family Youth Premium 1% Location Cust
Slide 8: Business Highlights
BRIEF OVERVIEW Q3 & 9M FY22 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 9: Q3 FY22 Business Highlights
Q3 FY22 Business Highlights Best quarter in Company’s History - Highest ever quarterly Revenue, EBITDA and PAT ! Standalone In INR Crore Consolidated In INR Crore Q3 FY22 Q3 FY21 YOY Growth% Q3 FY22 Q3 FY21 YOY Growth% Revenue 476 293 62.2% Revenue 484 304 59.0% EBITDA 167 93 79.2% EBITDA 169 99 69.
Slide 10: Q3 & 9M FY22 Business Highlights (Consolidated)
Q3 & 9M FY22 Business Highlights (Consolidated) Q3 FY22 YOY Analysis Revenue from Operations Gross Profit and Gross Margins EBITDA and EBITDA Margins PAT and PAT Margins # 484 59.1% 34.9% 21.8% 21.0% 57.9% 32.7% 304 286 169 102 176 99 66 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY2
Slide 11: Year wise Store additions
Year wise Store additions Stores 504 +9% 551 +6% 586 +7% 629 Out of the 43 net store additions, 31 net additions were during Q3 FY22. Due to lockdown restrictions imposed at the start of the Fiscal, the store expansion plans Opened 95 57 59 65 were hampered, which Closed picked up pace in Q3 10 10 2
Slide 12: Other business updates
Other business updates Robust growth in Ecommerce sales continues.. Pivoting successfully as an omni-channel footwear retailer .. ❖ Growth momentum in online sales (including omni-channel sales) continues with 114% growth on YoY basis. ❖ Contribution of online sales (including omni-channel sales) ha
Slide 13: Profit & Loss Statement (Standalone)
Profit & Loss Statement (Standalone) Particulars (In Rs Crore) Q3 FY22 Q2 FY22 Q3 FY21 9M FY22 9M FY21 FY21 Revenue from Operations 476 314 293 917 471 789 Other Income 12 17 17 45 69 79 Total Income 488 332 310 962 539 867 EXPENSES Purchases of stock-in-trade 244 153 120 482 185 316 Changes in inve
Slide 14: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) Particulars (In Rs Crore) Q3 FY22 Q2 FY22 Q3 FY21 9M FY22 9M FY21 FY21 Revenue from Operations 484 325 304 940 481 800 Other Income 12 17 17 45 68 78 Total Income 496 342 321 985 549 879 EXPENSES Purchases of stock-in-trade 250 155 118 495 140 274 Changes in in
Slide 15: Metro's Strengths
BRIEF OVERVIEW Q3 & 9M FY22 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 16: 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 17: 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 Dec’21) …with diversified presence across regions2 504 551 586 629 12% 14% 13% 14% 13% 16% 13% 16% 22% 21% 23% 21% 24% 22% 24% 23% 31% 31% 32% 31
Slide 18: Omni Channel
2 Pivoting from primarily "Offline" to an "Omni-channel" enabled footwear and accessories retailer “Highest number of Instagram 1.7% 2.5% 7.3% 9.2% Followers among key footwear ❖ Majority of online business comes through leading e-commerce retailers in India” (CRISIL) marketplaces (Present on 7 Majo
Slide 19: 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 20: 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 21: 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 22: 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 23: 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 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 24: 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 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 25: Board of Directors
7 Board of Directors1 ARUNA BHAGWAN ADVANI, ARVIND KUMAR SINGHAL, MANOJ KUMAR MAHESHWARI, MOHAMMED IQBAL HASANALLY Independent Director Independent Director Independent Director DOSSANI, WTD ❖ Holds bachelor’s degree in science ❖ Holds bachelor’s degree in electronics ❖ Holds bachelor’s degree in sc
Slide 26: Strong promoter background and experienced management team
7 Strong promoter background and an experienced and entrepreneurial management team with a proven track record Promoters Key Managerial Personnel* RAFIQUE A. MALIK, Chairman NISSAN JOSEPH, ❖ Over 50 years of experience in the field of footwear retail Chief Executive Officer ❖ Holds a bachelor’s degr
Slide 27: 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 27.7% 27.5% 54.9% 55.6% 54.9% 21.4% 10,150 1,217 1,285 354 337 668 714 800 440 171 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Rev f
Slide 28: Levers of Growth
BRIEF OVERVIEW Q3 & 9M FY22 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 29: 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 30: 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 29
Slide 31: Sustainability Initiatives & Others
BRIEF OVERVIEW Q3 & 9M FY22 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 32: Sustainability Initiatives
Sustainability Initiatives SOLAR ROOFTOP AT OUR BHIWANDI WAREHOUSE RECYCLED DISCARDED FOOTWEAR Co-processed around 130 tons of old discarded 28,381 kg CO2 emission saved equivalent to 847 trees planted. footwear (~ 1.69 lac pairs) at various cement factories. SUSTAINABLE FOOTWEAR COLLECTIONS SUSTAIN
Slide 33: Sustainability Initiatives
Sustainability Initiatives ❑ Through Project Nanhi Kali, contributed towards providing access to quality education to 500 underprivileged girls from Bharuch and help them complete schooling with dignity. ❑ Supported Pragatee Foundation – (Project: Enabling Leadership) to develop leadership skills in
Slide 34: Sustainability Initiatives.. Some glimpses
Sustainability Initiatives.. Some glimpses Refurbished footwear distribution to 12,500 rural Project to develop leadership skills in under-served school children (Greensole Foundation) 200 adolescents (Pragatee Foundation) Access to quality education to 500 underprivileged girls 33 (Project Nanhi Ka
Slide 35: Awards & Accolades
Awards & Accolades 2021 2021 Best Footwear Brand 2021 MAPIC India Awards Award By - India Retail Most Admired Retailer Champions Award { RAI } Of The Year- Footwear 2021 IMAGES RETAIL AWARDS Most Admired Retailer Tech Implementation Mrs. Farah Malik Bhanji featured on the Forbes’ Asia’s 2021 Power B
Slide 36: Appendix: Industry Overview
BRIEF OVERVIEW Q3 & 9M FY22 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 37: 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 38: 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 39: Thank You
Thank You