Aditya Birla Fashion And Retail Ltd · NSE:ABFRL
Aditya Birla Fashion And Retail — Q2 FY24 Earnings Presentation
39 slides from Aditya Birla Fashion And Retail's earnings presentation, Nov 9, 2023
Slide 1: Cover letter to BSE and NSE on investor presentation
November 9, 2023 BSE Limited National Stock Exchange of India Limited Scrip code: 535755 Symbol: ABFRL Sub.: Investor Presentation of the Board Meeting of the Company Ref.: 1. Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2
Slide 2: FY24 Performance Highlights
ADITYA BIRLA wt FASHION & RETAIL FY24 Performance Highlights
Slide 3: Distribution Network
Distribution Network Market Update Distribution Q2 Network Highlights Performance of Key Portfolios Company Financials
Slide 4: India's widest branded fashion network
India’s widest branded fashion network 16 3 13 117 2 25 15 76 144 17 4 175 14 4 1 8 3,617 439 156 14 426 1 Brand Stores Pantaloons Stores 40 15 8 27 1 131 1 3 1 14 9 145 46 132 16 7 82 118 45 10 1 7 34,978 7,153 8 31 13 Multi-brand Shop-in-Shops Outlets across 436 76 Dept stores 51 183 18 11.2 345 9
Slide 5: Market Update
Distribution Network Market Update Market Update Q2 Highlights Performance of Key Portfolios Company Financials
Slide 6: Market update: consumption, festive shift, wedding calendar
Consumption Festive season Lean wedding Slowdown shift calendar – Overall – Quarter – Fewer wedding consumption impacted by dates led to slowdown shift in festivities decline in continues wedding related – All discretionary purchases categories impacted Ecommerce Heightened Trend of growth competiti
Slide 7: Q2 Highlights
Distribution Network Market Update Q2 Highlights Q2 Highlights Performance of Key Portfolios Company Financials
Slide 8: Subdued growth, ethnic strategy completed, brand investments
Subdued Growth Ethnic Strategy Brand Investments completed – Consolidated revenue grew by – Concluded acquisition of – Enhanced brand strength 5% over LY TCNS, added 5 new through heightened – New businesses primarily brands to ethnic portfolio marketing investments contributed to this growth Distri
Slide 9: Key segments performance: standalone and consolidated Q2
Key segments Performance ABFRL Standalone ABFRL Standalone Particulars (In Rs. Cr.) Q2 FY23 Q2 FY24 Growth (Vs. LY) Revenue 2953 2995 1% Slower revenue growth impacted profitability EBITDA 465 426 -8% EBITDA M argin 15.7% 14.2% EBIT 200 83 PAT 80 -75 ABFRL Consolidated ABFRL Consolidated Particulars
Slide 10: Key segments performance: consolidated Q2 by segment
Key segments Performance Consolidated Financials Revenue Growth EBITDA EBITDA % ( In Rs. Cr.) Q2 FY23 Q2 FY24 vs FY23 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Lifestyle Brands 1680 1586 -6% 286 339 17.0% 21.3% Other Businesses 307 458 49% 6 -1 2.0% -0.2% Madura Segment 1987 2045 3% 292 338 14.7% 16.5% Pantal
Slide 11: H1 FY24 standalone and consolidated results
ABFRL Standalone ABFRL Standalone Particulars (In Rs. Cr.) H1 FY23 H1 FY24 Growth (Vs. LY) Revenue 5727 5982 4% EBITDA 969 849 -12% EBITDA M argin 16.9% 14.2% EBIT 451 183 PAT 204 -124 ABFRL Consolidated ABFRL Consolidated Particulars (In Rs. Cr.) H1 FY23 H1 FY24 Growth (Vs. LY) Revenue 5949 6423 8%
Slide 12: Consolidated financials H1 by segment
Consolidated Financials Revenue Growth EBITDA EBITDA % ( In Rs. Cr.) H1 FY23 H1 FY24 vs FY23 H1 FY23 H1 FY24 H1 FY23 H1 FY24 Lifestyle Brands 3199 3180 -1% 552 630 17.3% 19.8% Other Businesses 597 877 47% 27 -8 4.5% -0.9% Madura Segment 3796 4057 7% 579 623 15.3% 15.3% Pantaloons Segment 2113 2051 -
Slide 13: Performance of Key portfolios
Distribution Network Market Update Performance of Q2 Key portfolios Highlights Performance of Key Portfolios Company Financials
Slide 14: Key Portfolios overview
Key Portfolios Lifestyle Pantaloons Other Ethnic TMRW Sustained focus on Improvement in VH Inner wear impacted by Shift of festive and weak Scaling up the acquired product innovation & product, price value slowdown in Athleisure wedding season affected brands and refining the brand extensions equati
Slide 15: Lifestyle Brands
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Slide 16: Lifestyle Brands
Lifestyle Brands Revenue declined by 6% over LY due to: Fewer wedding dates Shift of festive EBITDA margin expands by 430 bps YoY driven by gross margin improvement Continuous new product introductions - LP forays into premium sneakers range PE launched new cricket inspired category – “The Gentlemen
Slide 17: Channel-wise revenue Q2 and H1
Q2 Channel-wise Revenue (in Rs. crore) vs. Q2 FY23 Q2 FY24 LY Wholesale 462 461 - Retail 734 703 -4% Direct to consumer channels in Q2 impacted Others 485 422 -13% mainly due to shift of festive and fewer wedding dates Retail sales declined with LTL of - 12% Ecommerce business declined due to shift
Slide 18: Peter England campaign video
Click anywhere on the image to see the campaign video of Peter England
Slide 19: Pantaloons brand creative
Slide 20: Pantaloons
Pantaloons Value / masstige fashion & lower tier markets remain subdued Revenue declined by 7% over LY Further impact due to shift of festive season, as seen in regional performance of business East declined due to shift of Pujo Rest of India grew by 7% YoY Led to overall LTL of -15% Net addition of
Slide 21: Category Mix and Ownership Mix
Category Mix Ownership Mix 10% 27% 15% 36% Q2 Q2 FY24 FY24 9% 64% 17% 22% Men Own Brands Women's Western MFL Women's Ethnic Others Kids 10% Non Apps 14% 37% 28% Q2 Q2 FY23 FY23 17% 10% 62% 22%
Slide 22: Other Business Segments
Other Business Segments Innerwear Youth Western Wear Super Premium Sports Wear
Slide 23: Innerwear & Athleisure
Innerwear & Athleisure Revenue declined 10% YoY due to Athleisure slowdown Innerwear category stayed flat Optimized retail distribution network LTL growth of 6% during Q2 First ever celebrity brand-campaign launched Distribution expansion stays strong Addition of ~1600 trade counters in H1 Now prese
Slide 24: Youth Western Wear
Youth Western Wear Revenue surges 37% YoY in a sluggish market Continued network expansion Added 3 retail stores to the network Expanded footprint in Department stores Brand continues to face headwinds in tough market
Slide 25: Super Premium Brands
Super Premium Brands Consistent strong performance 26% overall growth YoY 11% LTL growth Expanding the network – Presence across 39 stores thecollective.in continues to be the leading luxury Ecommerce destination Witnessed ~30% growth YoY
Slide 26: Reebok
Reebok Completed first year in ABFRL Enhanced brand presence, Elevated product portfolio and bolstered retail network Revenue grew by 77% over LY Rapid network expansion - 15 stores added Network of 153 stores Brand on track to cross Rs. 400 Cr this fiscal at positive EBITDA margin Gradually expandi
Slide 27: Reebok product creative
Slide 28: Ethnic Portfolio
Ethnic Portfolio Added 5 new brands to the portfolio Apparel | Beauty | Accessories | Jewelry
Slide 29: Jaypore
Jaypore Retail revenue grew by 49% over LY led by aggressive retail expansion Brand now available across 22 stores
Slide 30: Shantnu Nikhil
Shantnu Nikhil Strong revenue growth of 33% YoY Bridge segment posts 45% LTL growth despite market challenges Women’s wear grew at 75% Network expansion momentum continues Added 2 stores this quarter Exited the quarter with 18 stores
Slide 31: Sabyasachi
Sabyasachi Brand continues to outperform despite fewer weddings in Q2 39% YoY growth in revenue with 18% LTL growth Brand continues to grow in stature Selected as sole representative from India to mark 100th anniversary of Disney
Slide 32: Tasva
Tasva Brand grew 129% over LY Store expansion trajectory continues Now available at 59 stores Click anywhere on the image to see the campaign video of Tasva
Slide 33: House of Masaba
House of Masaba Revenue grew by 18% over LY Beauty business doubled over LY Expanded brand presence across markets Exited the quarter with 12 stores
Slide 34: Added TCNS brands to ABFRL portfolio this quarter
Added TCNS brands to ABFRL portfolio this quarter
Slide 35: Portfolio revenue at 7x of LY
Portfolio revenue at 7x of LY Added 8th brand to the portfolio post closure of quarter - The Indian Garage Company
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Slide 37: Company Financials
Distribution Network Market Update Company Q2 Financials Highlights Performance of Key Portfolios Company Financials
Slide 38: Financials: consolidated P&L and balance sheet
Financials Sep'23 Sep'23 Consolidated Profit & Loss Consolidated Balance Sheet Q2 FY23 Q2 FY24 Mar-23 (without (with In Rs. Cr. In Rs. Cr. TCNS) TCNS) Revenue from Operations 3075 3226 Networth 3,346 2,937 3,480 Other Income 22 46 Net Debt 1,422 4,280 4,355 Total Income 3097 3272 Lease Liability 4,2
Slide 39: Disclaimers
Disclaimers 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 out
Aditya Birla Fashion and Retail — Q2 FY24 Earnings Presentation on 6ix