Aditya Birla Fashion And Retail Ltd · NSE:ABFRL
Aditya Birla Fashion And Retail — Q3 FY2021 Earnings Presentation
55 slides from Aditya Birla Fashion And Retail's earnings presentation, Feb 8, 2021
Slide 1: Outcome of the Board Meeting – Cover Letter
February 8, 2021 BSE Limited National Stock Exchange of India Limited Scrip code: 535755 & 890148* Symbol: ABFRL & ABFRLPP* Sub.: Outcome of the Board Meeting of Aditya Birla Fashion and Retail Limited (“the Company”) for considering the Unaudited Standalone and Consolidated Financial Results for th
Slide 2: Unaudited Standalone Financial Results Q3 FY21
Aditya Birla Fashion and Retail Umited STATEMENT OF UNAUOITED STANDALONE FINANCAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2020 "lnQore Quarter ended Nine months ended Year ended Sr. December 31, 2020 September 30, 2020 December 31, 2019 December 31, 2020 December 31, 2019 March 31
Slide 3: Notes to Standalone Financial Results
Notes: The above standalone financial results have been prepared in accordance with Indian Accounting Standards (Ind AS). 34 "Interim Financial Reporting" as prescribed under Section 133 of the Companies Act1 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, as amende
Slide 4: Auditor's Review Report – Standalone
SR BC& CO LLP 12th Floor, The Ruby 29 Senapati Bapat Marg Dadar (West) Chartered Accountants Mumbai - 400 02B, India Tel : +9122 6819 8000 Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the
Slide 5: Unaudited Consolidated Financial Results Q3 FY21
ADITYA BlRLA Adltya Blrla Fashion and Retail Limited STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2020 "In Crore Quarter ended Nine months ended Year endi!d Sr. December 31, 2020 September 30, 2020 December 31, 2019 December 31, 2020 Decemb
Slide 6: Consolidated Segmentwise Revenue, Results, Assets and Liabilities
UNAUDITED CONSOLIDATED SEGMENlWISE REVENUE, RESULTS, ASSETS AND LIABILmES FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2020 "In Crore Quarter ended Nine months ended Year ended Sr. December 31, 2020 September 30, 2020 December 31, 2019 December 31, 2020 December 31, 2019 March 31, 2020 Particu
Slide 7: Notes to Consolidated Financial Results
Notes: The above consolidated financial results have been prepared in accordance with Indian Accounting Standards (Ind AS) - 34 Jnterim Financial Reporting11 as prescribed under Section 133 of the Companies Act, 2013 read with 11 Rule 3 of the Companies {Indian Accounting Standards} Rules, 2015, as
Slide 8: Auditor's Review Report – Consolidated
SR BC& CO LLP 12th Floor, The Ruby 29 Senapati Bapat Marg Dadar ( West) Chartered Accountants Mumbai - 400 028, India Tel : +91 22 6819 8000 Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of
Slide 9: Auditor's Review Report (continued)
SR BC& CO LLP Chartered Accountants 6. Emphasis of Matter We draw attention to Note 6 of the Statement which describes management's assessment of the impact of the COVID 19 pandemic on the Group's operations and carrying value of assets as at December 31, 2020. Our opinion is not modified in respect
Slide 10: Business rebounds impressively; Records highest ever standalone EBITDA
Aditya Birla Fashion and Retail: Business rebounds impressively; Records highest ever standalone EBITDA Performance Highlights 1. Q3 saw a significant acceleration of business recovery along sequential quarters; consumers started coming back to stores and continued to buy more online due to buoyant
Slide 11: Press Release: Recovery and Segment Performance
The pace and extent of recovery that started with the opening of stores in Q2 was amplified on the back of a large pent up demand, strong festive spirit and a concentrated wedding season. A combination of the above factors led to an upsurge in sales to almost double of Q2 levels. Rs Cr FY 21 Q1 FY 2
Slide 12: Press Release: Sabyasachi, Outlook and About ABFRL
The quarter also witnessed the progression of its clearly articulated aspiration of building a large and formidable play in the Indian ethnic wear segment. The company signed an agreement to acquire 51% stake in “Sabyasachi”, the iconic global luxury brand from India. OUTLOOK ABFRL is confident that
Slide 13: Performance Highlights
ADITYA BIRLA FASHION & RETAIL Performance Highlights
Slide 14: Distribution Network
Distribution Network Distribution Network
Slide 15: India's widest distribution network
3 India’s 3 16 12 21 81 2 13 59 142 2 widest 118 6 14 1 13 3 1 121 309 31 6 distribution 10 35 106 4 1 8 5 4 98 85 66 91 91 5 27 10 5 38 network 29 74 6 9 381 44 125 14 10 81 2 289 13 31 6 276 4 27 153 8.2 Q3 FY21 Footprint (million sq. ft.) 2,813 344 29,900 6,835 Brand Stores Pantaloons Multi-brand
Slide 16: Market Update
“4 - ihe ~ Market Ay \\ Network. Distribution qs <e Highlights Performance of Key Portfolios Way Forward Compan Financials ADITYA Bil DITYA BIRLA
Slide 17: Market Update
Market Update Omni-channel Value Fashion Merchandise shifts Rebound of & e-commerce footfalls E-commerce continues to post Value fashion players Significant shift towards Sharp surge in strong growth, continue to expand casual and unstructured Consumer footfalls in Tier 2 and Tier 3 clothing; light
Slide 18: Q3 Highlights
E See ) | li Rm J - 4, Distribution C8 igh : Performance of Key Portfolios Way Forward Compan Financials ADITYA BIRLA
Slide 19: Q3: Remarkable recovery on all key dimensions
Q3: Remarkable recovery on all key dimensions Strong Business Deep Cost Strengthening Rebound Reduction balance sheet — Entire network operational, — Cost rationalization —Strategic Fund raise from running on highest degree of Initiatives on track Flipkart group completed; Rs. safety and hygiene pro
Slide 20: Q3 Highlights
Q3 Highlights Robust Festive Performance Strong recovery at the back up revived footfalls and uptick in consumer spends ~ 80% E-commerce Growth Rapid digitization, ecosystem collaborations and disproportionate consumer shift towards digital Reinvigorated Expansion Aggressive store additions ,with an
Slide 21: ABFRL | Q3 Highlights
ABFRL | Q3 Highlights In Rs. Cr. Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY20 Revenue 323 1028 2076 2583 Growth% (QoQ) 218% 102% Growth% (YoY) -84% -55% -20% EBITDA -182 136 422 423 EBITDA M argin -56.3% 13.2% 20.3% 16.4% EBIT -419 -106 190 198 PAT -410 -188 58 -38 Strong sales recovery led by good festive perio
Slide 22: ABFRL | YTD Q3 Highlights
ABFRL | YTD Q3 Highlights YTD Q3 YTD Q3 In Rs. Cr. FY20 FY21 Revenue 6956 3427 EBITDA 1110 375 EBITDA Margin 16.0% 10.9% EBIT 458 -334 PAT -18 -540 YTD Q3 FY20 PAT is after one time write off of deferred tax asset of Rs 130 Cr
Slide 23: Continued Cost Reduction trajectory
Continued Cost Reduction trajectory Change Change In Rs. Cr. Q4 FY20 Q3 FY21 over Q4 Q3 FY20 over Q3 FY20 FY20 Revenue from Operations 1832 2076 13% 2583 -20% Other Income 17 57 15 Total Income 1849 2133 15% 2597 -18% Cost reduction Q3 FY21 vs Q4 FY20: COGS 892 989 11% 1237 -20% • Other Income inclu
Slide 24: ABFRL | Debt Reduction
ABFRL | Debt Reduction ~249 Cr of operating profits in Q3 Rs. 588 Cr. release Working capital release through operations of ~400 Cr+ in Q3 Rs. 1750 Cr. from Equity raise Rs. 260 Cr. release from operations 3,344 3,181 2,528 2,593 Final capital call for Rights issue (Rs. 250 Cr ) scheduled in July 20
Slide 25: Key segments | Q3 Highlights
Key segments | Q3 Highlights Consolidated Financials NSV EBITDA EBITDA % ( In Rs. Cr.) Q3 FY20 Q3 FY21 Growth Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Madura Lifestyle Brands 1295 1026 -21% 224 192 17.3% 18.7% Other Businesses 237 220 -7% -1 25 -0.3% 11.2% Madura Segment 1532 1246 -19% 223 217 14.6% 17.4% Pa
Slide 26: Key segments | YTD Q3 Highlights
Key segments | YTD Q3 Highlights Consolidated Financials NSV EBITDA EBITDA % YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 Growth ( In Rs. Cr.) FY20 FY21 FY20 FY21 FY20 FY21 Madura Lifestyle Brands 3554 1746 -51% 632 163 17.8% 9.4% Other Businesses 651 442 -32% -7 14 -1.1% 3.1% Madura Segment 4205 2188
Slide 27: Performance of Key Portfolios
Performance of Key Portfolios Performance of Key Portfolios
Slide 28: Lifestyle, Pantaloons, Other Ethnic Businesses
Lifestyle Pantaloons Other Ethnic Businesses Robust growth driven by Outstanding festive Exceptional New store launches product innovation; performance; highest resilience of the in acquired aggressive network ever EBITDA margin in portfolio, strong businesses, portfolio expansion kick started the h
Slide 29: Lifestyle Brands
performance of key portfolios LIFESTYLE BRANDS
Slide 30: The House of Brands
The House of FORMALS SPORT JEANS ATH.WORK | PLAY ETHNIC Portfolio of iconic brands evolving with changing consumers
Slide 31: Lifestyle Brands
LIFESTYLE BRANDS Excellent Festive performance led to ~ 80% recovery vs LY EBITDA margin expanded by 140 bps over LY Channel-wise Revenue (in Rs. Q3 FY20 Q3 FY21 Growth % crore) Wholesale 394 144 -63% Retail 642 591 -8% Others 259 291 12% Retail channel achieving 92% of LY sales – industry lea
Slide 32: Expansion agenda back on track
Expansion agenda back on track….. Retail Network Aggressive expansion into newer markets – over indexing on smaller towns Q3 FY20 Q3 FY21 Opened 229 new stores YTD Q3 Area 2739 2949 (,000 sq.ft.) PE Red crosses 300+ store milestone Stores 2187 2341 With the success of PE Red, Successfully pi
Slide 33: Aditya Birla
ADITYA BIRLA
Slide 34: Pantaloons: Highest ever quarterly EBITDA margin
Highest ever quarterly EBITDA margin — Business recovered to 75% at the back of strong festive PANTALOONS — LTL for the business was -27% — Differential performance across markets/micro markets — Mall business down 30%; high street lower by 18% — Metro & Tier 1 markets behind smaller towns in terms
Slide 35: Pantaloons: store additions and ecommerce
— Ramped up store addition plans, Added 7 stores this quarter and more in pipeline for Q4 PANTALOONS — Ecommerce/Omni continues to grow by leaps — Total ecom grows 2.3 x — Pantaloons.com grew 50%+ — launched omni across with ecom partners across 15% of network — PT.com omni rolled out across 60% of
Slide 36: Diversifying Portfolio with Private Labels
Diversifying Portfolio with Private Labels in Bags, Sarees, Home and Accessories
Slide 37: Pantaloons New Store Identity
Pantaloons New Store Identity
Slide 38: Intensified marketing to capitalize strong festive opportunity
Intensified marketing to capitalize strong festive opportunity
Slide 39: Sales mix by category and brand type
9% 31% 16% Q3 41% Q3 FY21 FY21 60% 15% 9% 19% Men Women's Western Own Brands Women's Ethnic MFL Kids Others Non Apps 10% 15% 31% 38% Q3 Q3 FY20 FY20 61% 17% 8% 20% Private label share marginally lower as business relied on external brands for winter wear
Slide 40: Other Business Segments
performance of key portfolios OTHER BUSINESS SEGMENTS Youth Fashion Innerwear/ Athleisure Global Brands Ethnic
Slide 41: Youth Fashion delivers profits this quarter
YOUTH FASHION Delivers profits this quarter — Sharp recovery of 80% YOY — Forever21.in business on consistent growth path, Delivered 3x sales YOY — American Eagle grew 42% over last year, backed by strong penetration of denim category — Ecommerce grew 170%; Multiple marketplace engagements drove dig
Slide 42: Van Heusen Innerwear & Athleisure | Menswear
Van Heusen Innerwear & Athleisure | Menswear A formidable range
Slide 43: Van Heusen Innerwear & Athleisure | Womenswear
Van Heusen Innerwear & Athleisure | Womenswear Continue building a product range that wins with consumers
Slide 44: Innerwear & Athleisure: Business grew 24% YOY
INNERWEAR & ATHLEISURE Business grew 24% YOY • Aggressive expansion continues – Available across ~20000 outlets • Athleisure and WFH categories enjoy strong Consumer traction • Ecommerce continues with its momentum, grew 270%+ over last year • Focused campaigns on product innovations, brand imagery,
Slide 45: Global Brands: Extraordinary resilience
Global Brands Extraordinary resilience — Business continues to beat pandemic blues — Delivered 20% Growth yoy — Turnaround performance with strong profitability — Ecommerce and Omni channel continue to scale up well — Own ecommerce site of thecollective.in business grew 500%
Slide 46: Ethnic Portfolio
Ethnic Portfolio — Jaypore grew 15% backed by — Strong online sales — Growth in Home category — Opened its first store post acquisition — Opened 3 EBOs in bridge-to-luxury celebration wear brand — — Launched brand commerce sites — Moved to a state-of-the-art new factory and design studio
Slide 47: New Store Launches | Jaypore
New Store Launches | Jaypore eau’ eee 4) ADITYA BIRLA
Slide 48: New Store Launches | S&N
New Store Launches | S&N
Slide 49: Partnership with Iconic Global Luxury Brand from India
Partnership with Iconic Global Luxury Brand from India Iconic Indian Brand Celebrating 20 years of craftsmanship and heritage
Slide 50: Highly aspirational brand; Impressive Business
Highly aspirational brand; Impressive Business INR 274 Cr. Numero Uno of
Slide 51: Company Financials
Company Financials Company Financials
Slide 52: Sustainability @ ABFRL: Global & National Recognition
Sustainability @ ABFRL : Global & National Recognition Among the most S&P Global Corporate sustainable Sustainability Assessment -2020 companies in India for sustainability Asia’s most sustainable assessment in joint research of Business company in textiles, apparels World India and and luxury goods
Slide 53: Company Financials
Company Financials Company Financials
Slide 54: ABFRL Consolidated Financials
YTD Q3 YTD Q3 ABFRL - Consolidated In Rs. Cr. Q3 FY20 Q3 FY21 FY20 FY21 Revenue from Operations 2583 2076 6956 3427 Other Income 15 57 49 379 Total Income 2597 2133 7005 3806 EXPENSES Cost of Materials Consumed 171 115 563 257 Purchases of Stock-in-Trade 921 524 2994 893 Changes in Inventories 144 3
Slide 55: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements” including, but not limited to, those relating to general business plans & strategy of Aditya Birla Fashion and Retail Limited (“ABFRL"), its future outl
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