Aditya Birla Fashion And Retail Ltd · NSE:ABFRL
Aditya Birla Fashion And Retail — Q3 FY22 Earnings Presentation
63 slides from Aditya Birla Fashion And Retail's earnings presentation, Feb 4, 2022
Slide 1: Outcome of the Board Meeting, February 4, 2022
FASHION & RETAIL February 4, 2022 BSE Limited National Stock Exchange of India Limited Scrip code: 535755 Symbol: ABFRL Sub.: Outcome of the Board Meeting of Aditya Birla Fashion and Retail Limited ("the Company") Ref.: 1. Regulation 30 (read with Schedule Ill - Part A}, 33 of the Securities and Exc
Slide 2: Statement of Unaudited Standalone Financial Results
Adltya Blrla Fashion and Retail Limited STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2021 "lnCrore Quarter ended Nine months ended Year ended Sr. December 31, September 30, December 31, December 31, December 31, March 31, Particulars No. 2021
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 Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, as amend
Slide 4: Standalone Notes: Reebok and Masaba Acquisitions
10 Acquisit ion of Reebok India Business: On December 14, 2021, the Board approved acquiring the exclusive online and offline rights to the global brand 'Reebok' for India, Bhutan, Nepal, Bangladesh, Maldives, Sri Lanka market and purchase of certain assets of 'Reebok India Company' including invent
Slide 5: Auditor Review Report (Standalone)
Price Waterhouse & Co Chartered Accountants LLP Review Report To The Board of Directors Aditya Birla Fashion and Retail Limited Piramal Agastya Corporate Park, Building 'A', 4 th and 5 th floor, Unit No. 401, 403, 501 and 502 L.B.S. Road, Kurla Mumbai- 400 070 1. We have reviewed the unaudited finan
Slide 6: Auditor Review Report (Standalone) continued
Price Waterhouse & Co Chartered Accountants LLP 5. We draw your attention to Note 6 to the Standalone Financial Results, which describes the management's assessment of the impact of the outbreak of Corona,irus (COVID-19) on the business operations of the Company. In ,iew of the uncertain economic em
Slide 7: Statement of Unaudited Consolidated Financial Results
Aditya Blrla Fashion and Retail Limited STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2021 1' In Crore Quarter ended Nine months ended Year ended Sr. December 31, September 30, December 31, December 31, December 31, March 31, Particulars No.
Slide 8: Consolidated Segmentwise Revenue, Results, Assets and Liabilities
UNAUDITED CONSOLIDATED SEGMENTWISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2021 ~inCrore Quarter ended Nine months ended Year ended Sr. December 31, September 30, December 31, December 31, December 31, March 31, Particulars No. 2021 2021 2020 2021
Slide 9: Notes to Consolidated Financial Results
Notes: The above consolidated financial results have been prepared in accordance with Indian Accounting Standards (1nd AS) • 34 "Interim Financial Reporting" as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, as ame
Slide 10: Consolidated Notes: Reebok and Masaba Acquisitions
10 Acquisition of Reebok India Business: On December 14, 2021, the Board approved acquiring the exclus ive online and offline rights to the global brand 'Reebok' for India, Bhutan, Nepal, Bangladesh, Maldives, Sri Lanka market and purchase of certa in assets of 'Reebok India Company' includ ing inve
Slide 11: Auditor Review Report (Consolidated)
Price Waterhouse & Co Chartered Accountants LLP Review Report To The Board of Directors Aditya Birla Fashion and Retail Limited Piramal Agastya Corporate Park, Building 'A', 4 th and 5 th Floor, Unit No. 401, 403, 501, 502, L.B.S. Road, Kurla, Mumbai - 400 070 1. We have reviewed the unaudited conso
Slide 12: Auditor Review Report: Entities Included
Price Waterhouse & Co Chartered Accountants LLP 5. The Consolidated Financial Results includes the results of the following entities: Holding Company: Aditya Birla Fashion and Retail Limited Subsidiaries (including step-down subsidiary): Sabyasachi Calcutta LLP Sabyasachi Inc., USA Jaypore E-commerc
Slide 13: Auditor Review Report (Consolidated) continued
Price Waterhouse & Co Chartered Accountants LLP 9. (a) The Consolidated Financial Results of the Company for the quarter ended December 31, 2020 and the year to date results for the period April 1, 2020 to December 31, 2020 prepared in accordance with Companies (Indian Accounting Standards) Rules, 2
Slide 14: Highest ever quarterly revenue and profits
Aditya Birla Fashion and Retail posts highest ever quarterly revenue and profits Performance Highlights 1. Q3 saw a sharp rise in consumer footfalls which led to strong revenue growth across channels: a. Q3FY22 Sales grew by 44% YoY 2. Consolidated EBITDA at Rs. 609 Cr, a whopping 44% growth over th
Slide 15: Consolidated Financials Q3 FY22
Consolidated Financials In Rs. Cr. Q3 FY 21 Q3 FY 22 Growth % Revenue 2076 2987 44% EBITDA 422 609 44% PAT 58 197 237% A combination of factors led to an upsurge in sales across categories and channels. Improved consumer sentiment led to a sharp demand recovery that was amplified by the concentrated
Slide 16: Outlook
OUTLOOK The onset of wave 3 has affected current market conditions and we expect normalcy to return in the following months as the pandemic wears down. The Company remains focused on leveraging its strong brand portfolio, evolving its product profile in line with changing consumer preferences, expan
Slide 17: Q3FY22 Performance Highlights
Performance Highlights Q3FY22
Slide 18: Distribution Network
Distribution Network Distribution Network
Slide 19: Distribution network
, 3 13 Distribution 8613 14 2 65 21 137 ' network 6 13 2 1 122 14 6 1 121 354 10 35 23 10 7 121 4 1 1 7 6 1 102 78 101 4 31 99 10 6 37 9 31 78 6 10 383 3,036 361 47 135 13 Brand Stores Pantaloons Stores 8 106 3 303 14 30 26,744 6,751 7 321 Multi-brand SIS across 7 168 29 8.9 Q3FY22 Outlets Departmen
Slide 20: Market Update
Market Update Market Update
Slide 21: Market Update
Market Update Upswing in Discretionary Spending E-commerce & Omni on roll ― Surge in consumer footfalls led to ― E-commerce continues to grow sharp increase in sales aggressively, while offline grew ― Performance driven by strong with enhanced Omni-channel festive and wedding season coverage Rise of
Slide 22: Q3 Highlights
Q3 Q3 Highlights Highlights
Slide 23: Q3 Highlights
I::::I Q3 Highlights Highest ever revenue & EBITDA Strengthening portfolio play ― Lifestyle grew by 55% over LY ― To acquire Reebok’s India operations, ― Strong LTL of 34% over LY aim to build muscle in sports & active ― Pantaloons grew 31% over LY wear category ― Posted highest ever EBITDA ― Signed
Slide 24: New launches
maiaba New launches
Slide 25: ABFRL | Q3 Highlights
ABFRL | Q3 Highlights Highest ever quarterly Revenue & Profit In Rs. Cr. Q3FY20 Q3FY21 Q3FY22 Growth (PreCovid) (Vs. LY) Revenue 2583 2076 2987 44% EBITDA 423 422 609 44% EBITDA Margin 16.4% 20.3% 20.4% EBIT 198 190 358 88% PBT 92 80 269 237% PAT -38 58 197 237% — Revenue grew 44% over LY, owing to
Slide 26: ABFRL | YTD Q3 Highlights
ABFRL | YTD Q3 Highlights YTD YTD YTD In Rs. Cr. Growth Q3FY20 Q3FY21 Q3FY22 (Vs. LY) (PreCovid) Revenue 6956 3427 5853 71% EBITDA 1110 375 802 114% EBITDA Margin 16.0% 10.9% 13.7% EBIT 458 -334 72 121% PBT 153 -716 -190 74% PAT -18 -540 -150 72% — Robust run rate as at the end of festive surpassed
Slide 27: Key Segments | Q3 Highlights | Revenue
Key Segments | Q3 Highlights | Revenue NSV Growth Consolidated Financials ( In Rs. Cr.) Q3FY20 Q3FY21 Q3FY22 vsPreCovid vsFY21 (PreCovid) Lifestyle Brands 1295 1026 1589 23% 55% Other Businesses 237 220 287 21% 30% Madura Segment 1532 1246 1876 22% 51% Pantaloons Segment 1083 811 1066 -2% 31% Elimin
Slide 28: Key Segments | Q3 Highlights | EBITDA
Key Segments | Q3 Highlights | EBITDA Consolidated Financials EBITDA EBITDA % ( In Rs. Cr.) Q3FY20 Q3FY20 Q3FY21 Q3FY22 Q3FY21 Q3FY22 (PreCovid) (PreCovid) Lifestyle Brands 224 192 346 17.3% 18.7% 21.8% Other Businesses -1 25 18 -0.3% 11.2% 6.4% Madura Segment 223 217 364 14.6% 17.4% 19.4% Pantaloon
Slide 29: Key Segments | YTD Q3 Highlights | Revenue
Key Segments | YTD Q3 Highlights | Revenue NSV Consolidated Financials YTD Q3 YTD YTD ( In Rs. Cr.) FY20 vsPreCovid Growth Q3FY21 Q3FY22 (PreCovid) Lifestyle Brands 3554 1746 3180 -11% 82% Other Businesses 651 442 642 -1% 45% Madura Segment 4205 2188 3822 -9% 75% Pantaloons Segment 2888 1262 1951 -3
Slide 30: Key Segments | YTD Q3 Highlights | EBITDA
Key Segments | YTD Q3 Highlights | EBITDA EBITDA EBITDA % Consolidated Financials YTD YTD YTD YTD YTD YTD ( In Rs. Cr.) Q3FY20 Q3FY20 Q3FY21 Q3FY22 Q3FY21 Q3FY22 (PreCovid) (PreCovid) Lifestyle Brands 632 163 477 17.8% 9.4% 15.0% Other Businesses -7 14 19 -1.1% 3.1% 3.0% Madura Segment 625 178 496 1
Slide 31: New highs being created
New highs being created Testimony to our strong brand portfolio and resilient business model Revenue Covid Wave 1 Covid Wave 2 2,583 2,987 2,076 2,308 1,832 1,822 2,054 1,915 2,065 323 812 1,028 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 EBITDA / EBITDA % Cov
Slide 32: Performance of Key Portfolios
Performance of Key Performance of Key Portfolios Portfolios
Slide 33: Lifestyle, Pantaloons, Other, Ethnic
Lifestyle Pantaloons Other Ethnic — Outstanding — 31% growth over LY, — IW business continues — Launch of Men’s performance driven by propelled by strong with its growth ethnic wear brand strong LTL (34%) Ecommerce & network momentum through “Tasva” — Accelerated expansion expansion distribution exp
Slide 34: Lifestyle Brands
performance of key portfolios Lifestyle Brands
Slide 35: Lifestyle Brands
Portfolio of strongest and most resilient fashion brands — Consistent strong performance Lifestyle — Revenue growth of 55% over LY Brands — EBITDA grew ~80% over LY — Margin expansion by more than 300+ bps — Category extensions & segment expansion as key growth driver — Active line “VH Flex” & Premi
Slide 36: Q3 channel-wise revenue
Q3 channel-wise revenue Q3 Q3 Q3 30% growth in retail channel over FY20 FY21 FY22 PreCovid, strong recovery in wholesale Wholesale 394 144 374 Retail 642 591 834 Others 259 291 381 — Retail sales grew by 30% over PreCovid — Grew 1.4x to Rs. 834 Cr. Vs. Rs. 591 Cr. LY Retail Network — LTL growth of 3
Slide 37: VH Flex & Louis
war VH Flex & % 4 I" Louis VANHEUSEN FLEX
Slide 38: Slide 38
Slide 39: Pantaloons
Pantaloons — Delivered NSV of Rs 1066 Cr – 31% growth over LY (LTL 21.5%) driven by festive led footfalls — Differential growth across markets & formats — Pantaloons over indexed to malls that had delayed recovery — Higher growth experienced across high street and tier 2 and below markets — Highest
Slide 40: Retail Network
— E-Commerce channel grew by 67% YoY in Q3 — Re-launched Pantaloons.com with new consumer interface, relevant content & optimized consumer journeys; Business grew 95% YoY — Ramped up of Omni-channel; 75% network now Omni enabled — Accelerated retail expansion with 22 new stores — 12 stores opened on
Slide 41: Category Mix and Ownership Mix
Category Mix Ownership Mix 9% 16% 29% Q3 40% Q3 FY22 FY22 15% 62% 9% ■ Men 20% Own Brands ■ Women's Western MFL ■ Women's Ethnic Others ■ Kids ■ Non Apps 8% 16% 30% 40% Q3 Q3 FY21 FY21 61% 16% 9% 20% *Previous year numbers reinstated to include E-commerce sales as well
Slide 42: Strong festive performance
Strong festive performance
Slide 43: First exclusive brand outlet
First exclusive brand outlet
Slide 44: Other Business Segments
Performance of key portfolios Other Business Segments Active Athleisure Innerwear Youth Western Wear Super Premium Brands Ethnic Wear
Slide 45: Van Heusen Active, Athleisure, Innerwear
Van Heusen Active Athleisure Innerwear — Revenue grew to 1.5x over PreCovid level — Ecom revenue more than doubled — On path to profitability at the back of scale economies and operating leverage — Distribution expansion remains a key focus — Exited the quarter with 65 stores — 40 additional stores
Slide 46: Women's athleisure & active wear
Women’s athleisure & active wear
Slide 47: Youth Western Wear
Youth Western Wear FOREVER 21 — Back on it’s expansion trajectory — 3 new stores during the quarter — Poised for a profitable growth trajectory A M E R IC A N EA G LE — Revenue grew by 127% over PreCovid level — Aggressive growth in share of denims, establishing it as a strong denim brand — Opened 5
Slide 48: Super Premium Brands
Super Premium Brands Super Premium Brands — Revenue grew 37% over last year Consolidation paying off — Continued to deliver strong profitability — Thecollective.in revenue grew by more than 4x over PreCovid level — Added 9 stores YTD across different — Network brands yielding results rationalization
Slide 49: Ethnic
Ethnic J R Eby 25% over last year at the back of Y P Ogrew — Revenue aggressive e-commerce growth — Opened 3 more stores during the quarter — Revenue more than doubled over LY — 2 new stores opened during the quarter — Closed the quarter with 10 stores
Slide 50: Sabyasachi
~ SABYASACHI CALCU ! TA
Slide 51: Sabyasachi
Sabyasachi — Strong resurgence in business at the back of wedding and festive season Operational Improvements — Business continues to be highly profitable — Investments underway to enhance jewellery & accessories capabilities — Dubai store witnessing robust traction """- SABYASACHICALC TTA
Slide 52: Tasva
: Se Ras, yan, ) (aie. ban TASVA———
Slide 53: Tasva: A Men's Premium Ethnic Wear Brand
fi T AMen’s itPremium S V AEthnic Wear Brand Operational — Grand launch at the Improvements bank of Ganges in Varanasi — Network rationalization yielding results — Opened its first store—in Renewed Bangalore focus on product — 2 new stores followed in quick succession — Q2 losses reduced YoY; YTD EB
Slide 54: New brand partnerships
ans
Slide 55: Slide 55
Slide 56: Building play in fast growing sportswear category
Building play in fast growing sportswear category — Acquired exclusive rights for Reebok India operations — Closure of transaction awaiting conclusion of global transaction — Integration process underway
Slide 57: Partnership with Masaba Gupta
ma{aba Partnership with Masaba Gupta — Signed up binding document to acquire majority stake in brand “Masaba” — Entry into Beauty & Personal care segment — Build a truly digital first brand — Aim to clock Rs. 500 Cr. topline in next 5 years
Slide 58: Slide 58
Slide 59: Build India's largest portfolio of digital-first fashion & lifestyle brands
Build India’s largest portfolio of digital-first fashion & lifestyle brands D2C TAM $100 bn by 2025 Distinct and scalable niches $ Organic & Inorganic portfolio creation Fashion, beauty - key themes * Value creation via strong operational expertise Broader tech ecosystem collaboration Board Approval
Slide 60: Company Financials
Company Financials Company Financials
Slide 61: Financials
Financials YTD YTD ABFRL - Consolidated In Rs. Cr. Q3FY21 Q3FY22 Q3FY21 Q3FY22 Revenue from Operations 2076 2987 3427 5853 Other Income 14 24 242 74 Total Income 2090 3011 3669 5927 EXPENSES Cost of Materials Consumed 115 254 257 548 Purchases of Stock-in-Trade 524 1117 893 2690 Changes in Inventori
Slide 62: Click anywhere on the image to view the latest campaign
Click anywhere on the image to view the latest campaign
Slide 63: 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
Aditya Birla Fashion and Retail — Q3 FY22 Earnings Presentation on 6ix