Campus Activewear Ltd. · NSE:CAMPUS
Campus Activewear — Q1 FY25 Earnings Presentation
32 slides from Campus Activewear's earnings presentation, Aug 12, 2024
Slide 1: Exchange filing cover letter - Earnings Presentation
12th August, 2024 To, BSE Limited National Stock Exchange of India Ltd. Corporate Relationship Department Exchange Plaza, C-1, Block G, 1st Floor, New Trading Ring, Rotunda Building, Bandra Kurla Complex, Bandra (East), P. J. Towers, Dalal Street, Mumbai – 400 051 Mumbai – 400 001 SCRIP CODE: 543523
Slide 2: Investor Presentation Q1 FY25 | August 2024
INVESTOR PRESENTATION Q1 - FY 25 | AUGUST 2024
Slide 3: Table of Contents
TABLE OF CONTENTS 01 Business Snapshot 02 Business Highlights 03 Business Performance – Q1 FY25 04 Growth Vectors 05 Industry Landscape
Slide 4: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Campus Activewear Limited (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows
Slide 5: 01 Business Snapshot
&*& CAMPUS 01 BUSINESS SNAPSHOT
Slide 6: India's Largest & Fastest Growing Scaled Sports & Athleisure Footwear Brand
CAMPUS - India’s Largest & Fastest Growing Scaled Sports & Athleisure Footwear Brand 48.0% 24,000+ Revenue from Operations* Q1 FY25: INR 339.2 Cr 48.0% Revenue Contribution from Direct-to- 24,000+ Retailers across 650+ cities and 28 (-4.1% YoY de-growth) Consumer Channels during Q1 FY25 vs 46.4% sta
Slide 7: Our Journey to Become India's #1 S&A Footwear Brand
Our Journey to Become India’s #1 S&A Footwear Brand Backward integration initiative – Upper EBO store count Manufacturing crosses 250 facility at Haridwar Backward integration IPO – Campus & Successful launch EBO store count Activewear IPO Inception of the initiative - Sole of INR 3,000+ crosses 100
Slide 8: Product – Placement – Promotion Interplay Generating Business MOAT
Product – Placement – Promotion Interplay Generating Business MOAT Internal Strengths Curated Over the Years Across Product Design, Supply Chain, Distribution and Marketing is Onerous to Replicate Sustained focus on Product Innovation and Design Integrated Manufacturing Ecosystem 35.7 mm Exclusive a
Slide 9: Experienced Management & Professional Board at the Helm of Affairs
Experienced Management & Professional Board at the Helm of Affairs Key Management Board of Directors Mr. H.K. Agarwal Mr. Nikhil Sanjay Chhabra ◼ Whirlpool Chairman & Aggarwal Chief Financial Mr. H.K. Agarwal Mr. Nikhil ◼ One of the ◼ One of the ◼ Carlsberg Managing Promoters of CEO & Whole-Time Pro
Slide 10: 02 Business Highlight
CAMPUS 02 BUSINESS HIGHLIGHT
Slide 11: Key Pillars of Business MOAT
Key Pillars of Business MOAT Superior Product Vertically Integrated Omni-Channel Innovative Marketing Digitization of Sales 1 Innovation and Design 2 Manufacturing 3 4 5 Customer Experience Capabilities Process Capabilities Ecosystem Innovation, Annual assembly Pan-India omni- Move from stand- Advan
Slide 12: Superior Product Innovation and Design Capabilities
Manufacturing Product Design Distribution Marketing Digitization Ecosystem 1 Superior Product Innovation and Design Capabilities Highly experienced in-house Global Design Consultancy Network team of 40 designers and Design Sourcing Tie-ups Deliver New and Identify emerging international fashion tren
Slide 13: Vertically Integrated Manufacturing Ecosystem
Manufacturing Product Design Distribution Marketing Digitization Ecosystem 2 Vertically Integrated Manufacturing Ecosystem Annual Assembly Capacity of 35.7 mm pairs (1) Uppers 18.6% In-house ✓ 90% domestic raw material sourcing Haridwar Outsourced 81.4% ✓ Exclusive ancillary network Shoe Sole Abilit
Slide 14: Omni Channel Platform to Reach Customers Where They Are
Manufacturing Product Design Distribution Marketing Digitization Ecosystem 3 Omni Channel Platform to Reach Customers Where Pan-India Distribution They Are Presence (24,000+ Retail Pan India Distribution Presence All-Inclusive Use of E-commerce Channels Touchpoints in more than Established Pan-India
Slide 15: Creating Trial Opportunities for New Users Through Strategic Launches
CREATING TRIAL OPPORTUNITIES FOR NEW USERS THROUGH STRATEGIC LAUNCHES SHOEC)\SE 18 = au UNVEILS EXCLUSIVE ® SNEAK PEEK INTO THE) CAMPUS" AW’24 COLLECTION | | FOR DISTRIBUTORS | SNEAKER OF THE SEASON “THE DARK KNIGHT COLLECTION” LADIES & KIDS GENTS LP GA campus? | acAMEUS, “GAMEUS “ we cy Poe CAMPUS
Slide 16: Digitization of Sales Process Generated a Virtuous Flywheel
Manufacturing Product Design Distribution Marketing Digitization Ecosystem 5 Digitization of Sales Process has Generated a Virtuous Flywheel enabling Faster Speed to Market Our Data Centric Approach allows us to understand Investment in D2C & Faster customer Consumer Demand Trends, Tech initiatives
Slide 17: 03 Business Performance – Q1 FY25
03 BUSINESS PERFORMANCE – Q1 FY25
Slide 18: Q1 FY25 – Financial & Business Highlights
Q1 FY25– Financial & Business Highlights YOY QOQ Parameters Q1 FY25 Q4 FY25 Q1 FY24 Growth Growth (INR Cr.) % % Revenue* 339.2 363.9 353.8 -4.1% -6.8% EBITDA 54.0 66.4 66.4 -18.7% -18.7% PAT 25.4 32.7 31.5 -19.4% -22.5% FINANCIAL HIGHLIGHTS Q1FY25 Results ❖ Sales volume at 58.0 lacs pairs vs 56.3 la
Slide 19: Statement of Profit & Loss
Statement of Profit & Loss Particulars (INR Cr) Q1-FY25 Q4-FY24 Q1-FY24 Gr% vs LY Gr% vs QoQ Revenue from Operations* 339.2 363.9 353.8 -4.1% -6.8% Total Income** 341.4 366.4 354.0 -3.5% -6.8% 181.9 184.0 189.0 Gross Margin 53.3% 50.2% 53.4% -0.1% 3.1% Employee Cost 28.7 27.2 23.7 20.8% 5.6% Adve
Slide 20: Q1 FY25 & TTM 3MFY25 – Financial Highlights
Q1 FY25 & TTM 3MFY25– Financial Highlights Revenue from Operations (1) (INR Cr) Volume Sold (# mm) Average Selling Price (INR / Pair) 472.0 69.3 681 658 55.9 56.3 57.2 58.0 636 353.8 363.9 629 337.7 339.2 Quarterly 258.7 39.3 604 585 Q1FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY23 Q1FY24 Q2FY24 Q3F
Slide 21: Q1 FY25 & TTM 3MFY25 Revenue: Segmental Analysis
Q1 FY25 & TTM 3MFY25 Revenue: Segmental Analysis Trade Distribution Channel Campus Activewear Limited (1) 743.2 813.0 768.2 753.6 535.3 1,484.3 1,448.3 1,433.7 1,194.2 FY21 FY22 FY23 FY24 TTM 3MFY25 Annual 711.3 Direct to Consumer Channel FY21 FY22 FY23 FY24 TTM 3MFY25 657.1 670.5 667.0 443.8 174.8
Slide 22: Q1 FY25 & TTM 3MFY25 – Financial Highlights
Q1 FY25 & TTM 3MFY25 – Financial Highlights Revenue from Operations (1) (INR Cr) EBITDA (2)&(4) (INR Cr) Profit After Tax (3)&(4) (INR Cr) 18.4% 18.8% 9.6% 12.2% 18.1% 15.8% 9.3% 8.9% 0.1% 5.3.% 8.9% 7.4% 472.0 363.9 EBITDA Margin (%) PAT Margin (%) 337.7 353.8 339.2 31.3 31.5 32.7 258.7 66.4 66.4 2
Slide 23: Q1 FY25 & TTM 3MFY25 - Working Capital Trends
Q1 FY25 & TTM 3MFY25 - Working Capital Trends Days Sale Outstanding (2) Days Payable Outstanding (2) Net Receivables/Rs Cr. 134.1 130.9 173.9 147.5 153.5 Net Payables/Rs Cr. 146.0 183.3 205.5 207.3 212.9 69 131 Annual 116 106 43 89 88 40 37 39 FY21 FY22 FY23 FY24 TTM 3MFY25 FY21 FY22 FY23 FY24 TTM 3
Slide 24: Q1 FY25 & TTM 3MFY25 - Return Ratios
Q1 FY25 & TTM 3MFY25 - Return Ratios Net Debt (1) Net Debt (1) / EBITDA INR Cr 173.9 156.8 Annual 134.6 1.1 0.7 0.6 (35.7) -0.2 -0.3 (54.2) FY21 FY22 FY23 FY24 TTM FY21 FY22 FY23 FY24 Q1FY25 3MFY25 Return on Equity (2) (%) Return on Capital Employed (3) (%) 29.3% 30.6% 23.9% 23.2% 18.5% 18.5% 17.0%
Slide 25: 04 Growth Vectors
&*& CAMPUS 04 GROWTH VECTORS
Slide 26: Prime Growth Vectors Going Forward
Prime Growth Vectors Going Forward Product Diversification via Extension into Allied Categories Text Sustained Focus on Premiumization Across Product Segments Further Accentuate our Omni-channel Experience Steadily Extend into New Territories By Deepening our Presence in Western and Southern Regions
Slide 27: 05 Industry Landscape & Positioning
05 INDUSTRY LANDSCAPE & POSITIONING
Slide 28: India S&A Footwear Market has Attractive Industry Prospects
India S&A Footwear Market has Attractive Industry Prospects Footwear is Expected to be among the fastest Growing segments within the Retail Industry Within Indian Retail Indian Footwear Market Size Total Addressable Market (FY25P) Industry, Footwear is 12% 15% 19% 21% Expected to be One of the 48% 5
Slide 29: S&A Footwear in India is Highly Underpenetrated
S&A Footwear in India is Highly Underpenetrated Structural Growth Drivers in Place – Increase in Fitness Consciousness and Disposable Income Annual Footwear Consumption Per Capita Annual Expenditure Share of S&A in Footwear Retail on S&A Footwear (pairs per capita) (in US$) 1.9 1.1 15% India’s Per C
Slide 30: Indian S&A Market has a Long Runway for Growth
Indian S&A Market has a Long Runway for Growth Poised for Similar Growth as Witnessed by Chinese Athleisure Market More Than 15 Years Ago Annual Footwear Consumption Per Capita Annual Expenditure Share of S&A in Footwear Retail on S&A Footwear (pairs per capita) (in US$) 1.9 1.1 15% Massive Growth 7
Slide 31: Widest Presence Across Price Segments
Widest Presence Across Price Segments Largest Market Coverage Addressing 85%+ of the S&A Footwear Market S&A Footwear Market (FY21) Revenue Contribution for CAMPUS INR 90bn FY19 FY24 Premium-Plus Nike 13% (Above INR 3,000) Puma Adidas Priced above INR 1,500 Expansive and Diverse Entry to Premium 31.
Slide 32: Thank You!
© CAMPUS THANK YOU!