Shoppers Stop Limited · NSE:SHOPERSTOP
Shoppers Stop — Q4 FY2022 Earnings Presentation
56 slides from Shoppers Stop's earnings presentation, Apr 28, 2022
Slide 1: Outcome of Board Meeting cover letter to exchanges
SHC)PPERS S·rc)P SEC/12/2022-23 April 28, 2022 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (East), Mumbai 400 001 . Mumbai 400 051. Stock Code : 532638 Stock Symbol: SHOPERSTOP Dear Sir/ Madam, Syb.:
Slide 2: Annexure: Re-appointment of Statutory Auditors
S II C) P P E Rs -ST c ) P Annexure Particulars Description a) Name of the Firm M/s. S R BC & Co LLP, Chartered Accountants b) Address of the Firm 12 1h Floor, The Ruby, 29 Senapati Bapat Marg, Dadar (West), Mumbai- 400028. c) Reason for change viz., appointment, Re-appointment to comply with the Co
Slide 3: Independent Auditor's Report on Standalone Financial Results
12th Floor, The Ruby SR BC & CO LLP 29 Senapati Bapat Marg Dadar (West) Chartered Accountants Mumbai - 400 028, India Tel : +91 22 6819 8000 Independent Auditor's Report on the Quarterly and Year to Date Audited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (L
Slide 4: Auditor's Report on Standalone Results (page 2)
SR BC & CO LLP Chartered Accountants Shoppers Stop Limited Page 2 of 3 Management's Responsibilities for the Standalone Financial Results The Statement has been prepared on the basis of the standalone annual financial statements. The Board of Directors of the Company are responsible for the preparat
Slide 5: Auditor's Report on Standalone Results (page 3)
--~·~------------------------- SR BC & CO LLP Chartered Accountants Shoppers Stop Limited Page 3 of 3 • Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to
Slide 6: Independent Auditor's Report on Consolidated Financial Results
S R B C & 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 Report on the Quarterly and Year to Date Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listi
Slide 7: Auditor's Report on Consolidated Results (page 2)
SR BC& CO LLP Chartered Accountants Shoppers Stop Limited Page 2 of 5 Basis for Opinion We conducted our audit in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Companies Act, 2013, as amended ("the Act"). Our responsibilities under those Standards are fur
Slide 8: Auditor's Report on Consolidated Results (page 3)
SR BC & CO LLP Chartered Accountants Shoppers Stop Limited Page 3 of 5 Auditor's Responsibilities for the Audit of the Consolidated Financial Results Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or e
Slide 9: Auditor's Report on Consolidated Results (page 4)
SR BC & CO LLP Chartered Accountants Shoppers Stop Limited Page 4 of 5 We communicate with those charged with governance of the Holding Company and such other entities included in the Statement of which we are the independent auditors regarding, among other matters, the planned scope and timing of t
Slide 10: Auditor's Report on Consolidated Results (page 5)
SR BC& CO LLP Chartered Accountants Shoppers Stop Limited Pages of 5 The Statement includes the results for the quarter ended March 31, 2022 being the balancing figures between the audited figures in respect of the full financial year ended March 31, 2022 and the published unaudited year-to-date fig
Slide 11: Statement of Standalone and Consolidated Financial Results
~ S T A RT ) Or.1 E. JH 1NG NEW Shoppers Stop Limited Registered Office: Umang Tower", 5th Floor, Mindspace, Off.Link Road, Malad (West), Mumbai 400 064. Tel: (+91 22) 42497000 ; Website : www.shoppersstop.com. E-mail: lnvestor@shoppersstop.com. CIN : L51900MH1997PLC108798 PART I : STATEMENT OF STAN
Slide 12: Part II: Balance Sheet as at March 2022
PART II : BALANCE SHEET AS AT 31 MARCH 2022 {Rupees in Crores) Standalone Consolidated As at 31 March 2022 As at 31 March 2021 As at 31 March 2022 As at 31 March 2021 Particulars (Audited) (Audited) (Audited) (Audited) A)ASSETS NON-CURRENT ASSETS Property, plant and equipement 378.63 419.28 378.57 4
Slide 13: Part III: Cash Flows for the Year Ended March 2022
PART Ill : CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022 (All amounts in Rs.Crores Standalone Consolidated For the year For the year For the year For the year ended 31 March ended 31 March ended 31 March ended 31 March Particulars 2022 2021 2022 2021 Cash flows from operating activities Net Loss after
Slide 14: Notes to the Financial Results
PART IV: 1 The above financial results have been prepared in accordance with Indian Accounting Standards as prescribed under section 133 of the Companies Act 2013 read with Rule 3 of the Companies (Indian Accountinq Standards) Rules , 2015, as amended. 2 The Company is primarily engaged in the busin
Slide 15: Press Release: Rising footfall lifts sales by 45% in FY22
SHOPPERS STOP Press Release for Immediate Distribution Rising footfall lifts Sales by 45% YoY to Rs. 3111 Crores in FY22 Key Financial Highlights for Quarter ended 31st March 2022: 1. Financial Highlights a) Revenue improves by 8% year-on-year to Rs. 890 Crores in Q4FY22 b) Private Brands revenue gr
Slide 16: Financial Performance
Financial Performance The Board of Directors of Shoppers Stop Limited (NSE: SHOPERSTOP | BSE: 532638), at its meeting today, approved the results for the quarter ended 31st March 2022 and for the full year ending 31st March 2022. The financials are appended below, after factoring in necessary adjust
Slide 17: CEO Commentary on Strategic Pillars
SHOPPERS STOP Mr. Venu Nair, MD & CEO at Shoppers Stop, said, "The Company ended the quarter on a satisfactory note despite Q4FY22 getting disrupted due to the partial lockdowns caused by the Omicron wave in January. The underlying demand continued to be strong across all businesses with most segmen
Slide 18: Way forward
Way forward For the apparel segment, the recent months have been strong and encouraging compared to the last 2-3 years and we are optimist that this growth is highly sustainable. While January had concerns around the Omicron variant, we believe that consumers will continue to spend as normalcy retur
Slide 19: Q4 FY22 Performance Highlights
PERFORMANCE HIGHLIGHTS Q4 FY22 1 LIFE
Slide 20: Launched Co-Branded Credit Card with HDFC Bank
Launched C0-Branded Credit Card with HDFC Bank 2 2 https://youtu.be/Krmm6UEUCCs
Slide 21: Key Highlights, Expansion, Strategic Pillars, Company Financials
1 KEY HIGHLIGHTS 2 EXPANSION 3 STRATEGIC PILLARS 4 COMPANY FINANCIALS 3 STOP
Slide 22: Market Outlook
MARKET OUTLOOK Customer Performance • Customer Footfall, particularly in 2nd half of • Omicron impacted January sales (2nd highest Q4 witnessed sharp recovery to near pre- month for retail), impacting 4th quarter pandemic levels • Q4 could have been higher than pre-covid, • Performance driven by inc
Slide 23: Q4 Highlights
Q4 HIGHLIGHTS Revenue Vs FY21 Store expansion • Sales growth trajectory continues @ +8% 19 new Stores opened • PB +9% • Departmental 5 (all stores in Tier I/II) • Beauty +9% • Beauty 4 (Standalone) • March Sales Growth @ +40% • Beauty 8 (Shop in Shop) • Airport 2 • Opex investments in Omni Rs.13 Crs
Slide 24: Q4 Highlights: PBT and one-off items
Q4 HIGHLIGHTS Q4 FY22 Q4 FY21 Growth Sales & Other Inc 903 833 8% PBT -26 -28 7% Details of one-off of Rs.21 Crs. Onetime Costs Inventory related 9 • Inventory shortage /write off of Rs.9 Crs during the quarter, primarily due to change in IT application, change in SOP due to Receivables w/off 6 Covi
Slide 25: Q4 Highlights: Cost Savings
Q4 HIGHLIGHTS Cost Savings continue at Rs.42 Crs for Q4 Q4FY22 Operating Cost 304 Operating Costs of New Stores 18 Investment in Online business 15 Others 5 Q4FY22 Comparable Cost 265 Q4FY20 Cost 307 Saving 42 7 LIFE
Slide 26: Operational KPIs
OPERATIONAL KPI’S Customer Entry (Mn) (5%) ASP +17% 8.7 8.3 1,366 1,166 Q4FY21 Q4FY22 Q4FY21 Q4FY22 ATV +17% Monthwise Customer Entry (Mn) (25%) (8%) +33% 3.7 FY21 4,062 3.0 3,464 2.7 2.8 2.6 FY22 2.3 8 Q4FY21 Q4FY22 Jan Feb Mar LIFE
Slide 27: Financial KPIs - GAAP
FINANCIAL KPI’S - GAAP Sales +6% Gross Margin +4% 200 EBITDA (17%) 798 285 10 0 275 753 116 97 0 Q4FY21Sales Q4FY22 Q4FY21 Q4FY22 Q4FY21 Q4FY22 9 Values in Crs. LIFE
Slide 28: Key Highlights, Expansion, Strategic Pillars, Company Financials
1 KEY HIGHLIGHTS 2 EXPANSION 3 STRATEGIC PILLARS 4 COMPANY FINANCIALS 10 LIFE
Slide 29: Store Footprint: 259 Stores, 4.47M sq.ft.
STORE FOOTPRINT 259 Stores X 4.47M sq.ft. Format Store count X X X X Department store 88 X X X X X Home Stop 11 X X X X X X Beauty Stores 136* X X X X Airport Doors 24 X X X X X X *Includes 53 Shop in Shop X X X X In M Sq. ft. X X X X X Year End Store count Chargeable Carpet X FY19 225 4.17 3.45 X X
Slide 30: Investing for Growth
INVESTING FOR GROWTH Dept Beauty/Others Total New Dept Store Opening Stores Area Stores Area Stores Area Year In Tier II and III Total Store Count as on 31st Dec21 83 4.0 163 0.2 246 4.2 FY20 6 11 Additions in Q4FY22(Net) 5 0.2 8 13 0.3 FY21 1 1 Store count as on 31stMar22 88 4.2 171 0.3 259 4.5 FY2
Slide 31: Mall of Jaipur
MALL OF JAIPUR 13
Slide 32: Indiabulls Jodhpur
INDIABULLS JODHPUR 14
Slide 33: Emerald Mall Lucknow
EMERALD MALL LUCKNOW 15
Slide 34: Acropolis Siliguri
ACROPOLIS SILIGURI ' 7 } i — = : — 5 ‘ i | - 16
Slide 35: Nucleus Parikrama Ranchi
NUCLEUS PARIKRAMA RANCHI 17
Slide 36: Mumbai Airport T2 International
MUMBAI AIRPORT T2 INTERNATIONAL 18
Slide 37: SS Beauty Stores
SS Beauty Stores • To be the best beauty destination with leading beauty engagement and best in class customer experience in the Premium Segment • Focused on bringing the best of international and Indian Beauty Brands, across make-up, skin- care and fragrances • Store size in range of 1500 sq. ft. t
Slide 38: SS Beauty Stores
SSBEAUTY STORES Mumbai – Infiniti Malad Ludhiana Mumbai – PMC Kurla 20
Slide 39: Jo Malone, Jio Maker Maxity - Mumbai
JO MALONE, JIO MAKER MAXITY - MUMBAI 21
Slide 40: Key Highlights, Expansion, Strategic Pillars, Company Financials
1 KEY HIGHLIGHTS 2 EXPANSION 3 STRATEGIC PILLARS 4 COMPANY FINANCIALS 22 FRATINI
Slide 41: Strategic Pillars
STRATEGIC PILLARS Vs FY21 8.7M +5.3% +9.4% +9.1% +5.1% FIRST CITIZENS PRIVATE BRANDS BEAUTY OMNI-CHANNEL 76.2% 13.2% 17.6% 6.0% Sales Contribution 23
Slide 42: First Citizen
FIRST CITIZEN 1. Sales contribution • Offline 79% • Online 37% 2. Repeat purchases 63% 3. ATV +12% 4. Launched co-branded credit card with HDFC Bank; first in Retail by HDFC 5. Better Targeting and Hyper Personalization through Propensity Models 6. First Citizen Black Customers • Sales Contribution
Slide 43: Private Brands
PRIVATE BRANDS Sales +9.4% • PB Contribution • Overall 13% Sales and Contribution % • Apparels 19%(+45 bps) 13.2% 13. 5% • Online 20% 13.0% • Kids continue to outperform, Infant (Karrot) & Occasion wear(Bandeya) range expanded 13. 0% 12.5% • Value +40% 117 12.0 % • Volume +20% 107 11 .5% • Women Ind
Slide 44: Beauty
BEAUTY Sales +9.1% Sales and Contribution % • 24 New brands launched in Q4; YTD 94 Brands • Key New Brand Launches 17.6% • Makeup: Jeffree Star Cosmetics; 17.4% Anastasia Beverly Hills • Skin Care: Caudalie 157 • Fragrance: The House of Oud 144 • Arcelia (Private Brand) • Launched 60+ SKUs of Nail r
Slide 45: Omni Channel
OMNI CHANNEL Sales +5.1% • App Downloads 640K in Q4 Digital Sales and Contribution % 14M Cumulative 6.0% • Android rating consistent at 4.4 and iOS at 4.6 6.1% • Average repeat visit of an Omni-customer 5 times • Building Content-to-Commerce capabilities 54 51 • Integration with “Unicommerce” • Crea
Slide 46: Key Highlights, Expansion, Strategic Pillars, Company Financials
1 KEY HIGHLIGHTS 2 EXPANSION 3 STRATEGIC PILLARS 4 COMPANY FINANCIALS 28 HOMESTOP
Slide 47: KPI Performance Q4 FY22 vs FY21
KPI PERFORMANCE Q4 FY22 Vs FY21 6% (80) bps (17%) Sales Gross Margin EBITDA GAAP 798 285 97 NON- GAAP 890 278 (13) 8% (220) bps (236%) *Margin decline primarily due to onetime inventory related impact, as given in Slide No.6 29
Slide 48: Financials Q4 FY22
FINANCIALS Q4 FY22 Particulars Non GAAP GAAP Adjustment in Net Profit GAAP Adj PBT (as per Non GAAP) -47 Rs. in Crs. FY22 FY21 Gr% FY22 FY21 Gr% Lease Rent (Non-GAAP) -91 Revenue 890 825 8% 798 753 6% Finance costs 47 Other Income 13 8 63% 20 21 -4% Depreciation on ROU Assets 56 Total Revenue 903 83
Slide 49: Balance Sheet
BALANCE SHEET Particulars Mar’22 Mar'21 Dec’21 Net worth 625 767 637 Loan Fund 194 150 194 Total Liabilities 819 917 831 Fixed Assets + Lease Deposit 732 762 724 Net Cash Rs. in Crs Investments 163 154 186 Cash & Investments 178 Inventory* 1009 848 1021 Other Assets 494 444 539 Loan 194 Total Curren
Slide 50: Cash Flow
CASH FLOW Particulars Mar'22 Mar'21 Dec’21 Cash Profit from Operations (before tax) -17 -187 -12 Changes in Working Capital 124 -58 93 Cash generated from Operations 106 -245 81 Fixed Assets /Reduction in Capex Creditors -120 -78 -66 Cash generated from Operations -13 -323 15 Redemption of Investmen
Slide 51: Annexures
ANNEXURES 33
Slide 52: Financials Q4 FY22
FINANCIALS Q4 FY22 Particulars Non GAAP GAAP Rs. in Crs. FY22 FY21 Gr% FY22 FY21 Gr% Revenue 890 825 8% 798 753 6% Other Income 13 8 63% 20 21 -4% Total Revenue 903 833 8% 818 773 5% Adjustment in Net Profit GAAP Adj Margin 278 275 1% 285 275 4% PBT (as per Non GAAP) -47 Margin% 31.2% 33.4% -220 Bps
Slide 53: Financials YTD FY22
FINANCIALS YTD FY22 Particulars Non GAAP GAAP Rs. in Crs. FY22 FY21 Gr% FY22 FY21 Gr% Revenue 3111 2142 45% 2803 1933 45% Other Income 38 20 89% 166 219 -24% Total Revenue 3149 2162 45% 2969 2152 37% Adjustment in Net Profit GAAP Adj Margin 984 662 49% 990 660 50% PBT (as per Non GAAP) -184 Margin%
Slide 54: Facts: stores, customers, brands, area
259 (1) Stores 8.7M 800+ FIRST CITIZENS BRANDS 13.2% Mix 6.0% Mix PRIVATE BRANDS ECOM FACTS 4.4 M as on 31st Mar’22 46 SQUARE FEET CITIES AREA 36 M+ WALK-INS in Q4 (2) 15.7K TALENT POOL 36 1. Includes 53 Shop in Shop 2. Including Brand staff
Slide 55: Disclaimer
DISCLAIMER Certain statements in this release concerning our future growth prospects are forward-looking statements within the meaning of applicable securities laws and regulations, and which involve number of risks and uncertainties, beyond the Control of the company, that could cause actual result
Slide 56: Investor contact
In case of any clarifications please contact on investor@shoppersstop.com 38