Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q4 FY2024 Earnings Presentation
50 slides from Vaibhav Global's earnings presentation, May 2024
Slide 1: Shop LC Delivering Joy - Vaibhav Global Limited
SHOP LC DELIVERING JOY VAIBHAV GLOBAL LIMITED
Slide 2: Disclaimer
Disclaimer This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Vaibhav Global Limited (VGL) and its group companies’ future business developments and economic p
Slide 3: MD's Message
Delighted to announce that we have achieved our stated guidance revenue numbers. On a full-year basis, group’s topline crossed ₹ 3,000 crores mark for the first time and was ₹ 3,041 crores as against ₹ 2,691 crores, showing a growth of 13%. Consolidated revenue in Q4 was at Rs. 789 crores, which is
Slide 4: Q4 FY24 Highlights
Q4 FY24 Highlights 14% YoY 26% YoY 15% YoY Rs. 230 cr. Revenue Growth Volume Growth EBITDA Growth Free cash flows Quarterly and yearly revenue grew by 14% & 13% respectively, in line with our stated guidance A Strong Balance Sheet: Free Cashflow of Rs. 230 crores with net cash position of Rs. 167 cr
Slide 5: Table of Contents
06 11 Company Business Table of Contents Overview Overview 26 29 Update on Emerging Industry Acquisitions Trends & Germany 33 39 Operational & Financial Financial Highlights Performance Trends 44 Annexures
Slide 6: Overview
Vv VAIBHAV GLOBAL LIMITED Overview
Slide 7: About Us
About Us Vertically-integrated Digital Retailer of fashion Strong Customer Visibility jewellery & lifestyle products ▪ TV Homes accessed (*FTE): ~ 130 mn ▪ End-to-end B2C business model households ▪ Presence through proprietary TV channels and ▪ Growing digital presence digital platforms Strong Mana
Slide 8: Our Vision and Mission
Sustainability Initiatives Our Vision Be the Value Leader in Electronic Retailing of Jewellery & Vaibhav Global Limited Lifestyle Products Global Retailer on TV and Digital Platforms of Fashion Jewelry, Lifestyle Products and Accessories Our Mission To deliver 1 million meals per school day to child
Slide 9: An Evolving Journey
An Evolving Journey Started Gemstones Started Jewellery Listing on stock business manufacturing for B2B exchange 1980 1996 1997 Started 'Lifestyle Products' Shifted strategy towards category, name changed to 'value conscious offering' Vaibhav Global Ltd. 06-07 Started own TV 2013 2008 channels in UK
Slide 10: Strong & Experienced Management
Strong & Experienced Management Mr. Sunil Agrawal Mr. Nitin Panwad Mr. Vineet Ganeriwala Ms. Srikant Jha Mr. Deepak Mishra Managing Director, VGL Group Group CFO, VGL Group President, Shop LC (US) Managing Director, Managing Director, Shop TJC (UK) Shop LC (Germany) Mr. Ankur Sogani Mr. Deepak Sharm
Slide 11: Business Overview
BUSINESS Overview
Slide 12: A Global Retailer on Proprietary TV Channels
A Global Retailer on Proprietary TV Channels Proprietary ‘TV Channels’ Primary Retail Markets 61 million HH USA 27 million HH UK 42 million HH Germany Reaching TV homes through Cable, Satellite and OTA broadcasts (Over The Air) HH: Households
Slide 13: Complemented by Digital Platforms
Complimented by Digital Platforms Digital Platforms Our Presence Proprietary Digital Platform Mobile Applications www.shoplc.com www.tjc.co.uk www.shoplc.de www.idealworld.tv www.mindfulsouls.com Third Party Marketplaces Social Retail OTT Platforms
Slide 14: With Huge Growth Potential: TAM of USD 20 bn
With Huge Growth Potential: TAM of USD 20 bn Opportunity ➢ Target customers: Baby Boomers (65+ years) & Gen X size (45+ years) $14- $15 bn UNITED STATES $2-$2.5 bn UNITED KINGDOM ~$3 bn ➢ Value-buying proposition of $25-$45 GERMANY & AUSTRIA ➢ Widest product range comprising ~25,000 SKUs • Statista,
Slide 15: Vertically Integrated Supply Chain: Jaipur
Vertically Integrated Supply Chain Leveraging Global Jewellery Manufacturing Hub: Jaipur Global manufacturing hub 169,000 sq. ft. Making in India for of Fashion Jewellery & Fully-integrated Manufacturing Set-up in Jaipur ‘Western Markets’ Gemstones Production Capacity: 5 million pcs p.a. Availabilit
Slide 16: Strong Global Sourcing Base
Vertically Integrated Supply Chain Complemented by a Strong Global Sourcing Base Sourcing Countries ▪ India ▪ UK ▪ China ▪ Mozambique ▪ Thailand ▪ Germany ▪ Indonesia ▪ Italy ▪ Tanzania ▪ Turkey ▪ Russia ▪ Poland ▪ Morocco ▪ Singapore ▪ Myanmar ▪ UAE ▪ Madagascar ▪ Japan ▪ Bolivia ▪ Bangladesh ▪ Ken
Slide 17: Constantly Reimagining Growth Through New Designs & Products
Constantly Reimagining Growth Through New Designs & Products Fashion Jewellery & Gemstones Life-Style Products Detangler Hair-Brush Trending Beauty Spinner Murano (Retractable Bristle Technology) Products Ring ▪ ~14K-15K new jewellery designs launched annually ▪ A rich product basket of ~5000 unique
Slide 18: 'Innovation' Focused
‘Innovation’ Focused 47,000+ 6,000+ 2,300+ Ideas Generated Ideas Approved Products sold 40,000+ 4,000+ Ideas Proposed to Orders Placed Buyers Global Search Program Crowdsourcing of Ideas Received ‘Design Patent’ A Global product innovation From employees, customers and external stakeholders for ‘Han
Slide 19: Strengthening Own Brand Portfolio
Strengthening Own Brand Portfolio USA UK Germany • Leveraging manufacturing & digital capabilities • Number of brands: 30 • Current revenue mix: ~28% of B2C revenue • Target revenue mix: ~50% by FY27 of B2C revenue • Strategic brand matrix (price laddering and offering) • Increase repeats and retent
Slide 20: Resulting In
Resulting In
Slide 21: Top decile shareholders' returns
Top decile shareholders’ returns Growing Consistently Parameters CAGR Return (Rs. in crores) (25 years) (x times) Revenue 16% 42 EBITDA 15% 35 Profit After Tax 14% 26 ~24% CAGR in market cap. since listing (~340 times), excluding dividend
Slide 22: R's of Customer Engagement
4 R’s of Customer Engagement TV: Diverse Products Enduring relationships Linear | OTA Expanding wallet share Digital: Deep value proposition Convenience Browsers | Mobile Apps | Cross-selling Market-places | OTT| Social Media Engrossing Content Digitalization/AI Reach (HH) Registrations^ Retention R
Slide 23: Long term value creation
With long term value creation Cash accretive business model With strong dividend payouts 272 268 237 230 190 176 105 127 Since FY20 Rs. in crores 90 Profits After Tax 931 FY 20 FY 21 FY22 FY23 FY24 Dividend payout 485 Dividend payout 52% Impact of one-time (214) planned higher capex Net Profit (Rs.
Slide 24: Broad Based E-tailer
Broad Based E-tailer B2C Revenues by Format B2C Revenues by Product Category TV revenues Digital revenues Jewellery Lifestyle 27% 37% 39% 12% 27% 30% 73% 88% 73% 63% 61% 70% FY18 FY23 FY24 FY18 FY23 FY24 Jewellery : Fashion Jewellery, Gemstones and Accessories Lifestyle : Home Décor, Beauty & Hair C
Slide 25: An update on Germany and Recent Acquisitions
oF VAIBHAV GLOBAL LIMITED An update on GERMANY AND RECENT ACQUISITIONS
Slide 26: An update on Germany
An update on Germany Increased TAM (immediate target addressable market) by ~20% ▪ Monthly revenue of Euro 1.8 mn+ at 60%+ gross margins ▪ Repeat purchase of 22 pieces ▪ Omni-channel presence (digital is now 28%) ▪ Presence in 42 million households (95% penetration) ▪ Dispatching 3.5k+ pieces/day Re
Slide 27: Ideal World
Ideal World Operational update • Transponding on all major TV networks across UK • Unique customers: 54k • Q1 FY25 plans: • New studio • ‘SKY’ upgradation to HD Financial update • Monthly revenue of £1.2mn at healthier gross margins of 62% + • Achieved profitability in H2 of FY24 on direct cost basi
Slide 28: Mindful Souls
Mindful Souls Operational update • Unique customers: ~72K* • Acquiring ~4-5k news customers per month • Utilising VGL’s supply chain Financial update • Q4 revenue at €4.1mn • Healthy PBT margins of ~10% • Cost arbitrage to improve margins: • Leveraging vertically integrated supply chain • Warehouse
Slide 29: Emerging Industry Trends
Emerging INDUSTRY TRENDS
Slide 30: Capitalizing Cord Shifting through OTA
Capitalizing Cord Shifting through OTA Our target demographics prefer Expanding presence through OTA watching traditional Pay-TV % of population having TV (age group wise) Total OTA HH in US: 86% 23mn 80% 81% 73% 65% 66% Shop LC’s Presence 46% Low Power: ~18mn HH 34% Full Power: ~5mn HH Revenue Mix
Slide 31: Being Resilient
Being Resilient • Sustaining growth momentum Revenue and EBITA % trends YoY Revenue Growth EBITDA % 18.0% 46.0% 16.0% • Key macro indicators stabilising 14.0% 36.0% 11.1% 12.0% • Consumer demand reviving 10.0% 9.5% 26.0% 22.8% 10.0% 8.0% 8.1% 8.0% • Better pricing and product mix aiding gross16.0% 1
Slide 32: Widening Digital Presence
Widening Digital Presence OTT: Huge Growth opportunity In US, OTT’s are projected to be the fastest growing video distribution medium US internet connected device installed base, 2016 to 2026 Live & Interactive Apps Shop LC (US) OTT revenue trend (USD mn) $10.5 $7.5 $6.0 $2.2 2020-21 2021-22 2022-23
Slide 33: Q4 & FY24
Vv VAIBHAV GLOBAL LIMITED Q4 & FY24
Slide 34: Financial Highlights – Q4 & FY24 Revenue breakup
Financial Highlights – Q4 & FY24 Revenue breakup Revenue (Rs. Cr) Total Revenue 13.0% 3,041 2,691 14.0% 693 789 Q4 FY23 Q4 FY24 FY23 FY24 Revenue split (Rs. Cr) TV Revenue Digital Revenue B2B Revenue 17.2% 8.3% 1,145 1,633 1,769 977 127 19.1% 81 10.8% 409 453 256 305 31 29 Q4 FY23 Q4 FY2
Slide 35: Revenue in Local Currency – Shop LC and Shop TJC
Financial Highlights – Q4 & FY24 Revenue breakup Revenue – (Local Currency) Shop LC (US) Shop TJC (UK) 5 years CAGR 5 years CAGR 5% 9% (USD million) 0.7% (GBP million) 5.8% 219.7 221.3 78.4 74.1 3.8% 12.9% 53.8 55.9 17.8 20.0 Q4 FY23 Q4 FY24 FY23 FY24 Q4 FY23 Q4 FY24* FY23 FY24* 35 *incl
Slide 36: Retail Performance Trends – Q4 & FY24
Retail Performance Trends – Q4 & FY24 TV Sales Sales Volume ('000s) Average Selling Price US$ 2.4% 44.6 6,100 5,331 5,459 39.4 38.0 39.1 4,100 26.2% 2,100 1,098 1,386 100 Q4 FY23 Q4 FY24* FY23 FY24* Q4 FY23 Q4 FY24* FY23 FY24* Digital Sales Sales Volume ('000s) Average Selling Price US$ 3.8% 5
Slide 37: Financials – Q4 & FY24 Performance
Financials – Q4 & FY24 Performance Gross Profit (Rs. Cr) and Margin (%) EBITDA (Rs. Cr) and Margin( %) 61.0% 62.7% 61.9% 62.0% 8.0% 8.1% 8.4% 9.7% 14.7% 29.9% 1,885 295 1,644 227 17.2% 14.9% 422 495 55 64 Q4 FY23 Q4 FY24 FY23 FY24 Q4 FY23 Q4 FY24 FY23 FY24 PAT (Rs. Cr) and PAT Margin (%) EPS
Slide 38: EBITDA margin walk
EBITDA margin walk % to Particulars Remarks Revenue EBITDA Q4 FY23 8.0% Gross Margin 1.7% Better pricing and product mix Broadcasting expenses 2.1% Vodafone Germany and acquisition Packaging & shipping expenses 1.0% Owing to increase in volume IT and call handling 0.4% Cost optimisation Othe
Slide 39: Financial Performance Trends
roZ VAIBHAV GLOBAL LIMITED FINANCIAL PERFORMANCE Trends
Slide 40: Financial Performance Trends
Financial Performance Trends Revenue Breakdown – (Rs. crore) 5 years CAGR: 11% 3,041 2,540 2,752 2,691 1,814 1,986 FY19 FY20 FY21 FY22 FY23 FY24 Fashion Jewelry, Accessories & Lifestyle Products (Rs. Crore) 5 years CAGR: 9% 5 years CAGR: 18% TV Revenue B2B Revenue Digital Revenue 1,699 1,633 1,769 1
Slide 41: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volume ('000s) Average Selling Price US$ 7,837 38.0 39.1 6,998 32.6 6,275 6,070 29.9 5,331 5,459 26.5 27.7 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 Digital Sales Sales Volume ('000s) Average Selling Price US$ 5,409 5,477 30.1 4,428 4,596 27
Slide 42: Annual Financial Performance
Financials – Annual Financial Performance Shareholders’ Equity (Rs. Cr) Fixed assets including intangibles (Rs. Cr) 1,203 1,258 622 1,127 964 511 494 697 751 163 192 117 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 Net Debt* (Rs. Cr) Net Assets^ (Rs. Cr) FY19 FY20 FY21 FY22 FY23 FY24
Slide 43: Financial Performance – Trends & Ratios
Financial Performance – Trends & Ratios Operating Cash flow (Rs. Cr) Free Cash Flow (Rs. Cr) 268 324 230 270 181 176 203 211 126 90 86 (214) FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 ROE (TTM) ROCE (TTM) 32% 61% 25% 26% 23% 46% 37% 31% 9% 10% 19% 14% FY19 FY20 FY21 FY22 FY23 FY24 F
Slide 44: Annexures
Slide 45: Digital Commerce Markets
Digital Commerce Markets Broader macro challenges tapering down US US 15.4% UK 14.0% 14.6% 14.5% ▪ Positive consumer sentiments 30.9% 27.8% 26.5% 26.4% 11.0% driving the consumption 19.1% 26.6% 26.0% ▪ Market leading growth continues UK ▪ Online sales mix stabilizing 2019 2020 2021 2022 2023 Q4 Q4 2
Slide 46: Sustainability Initiatives
Sustainability Initiatives ENERGY WATER Solar power capacity Solar Generated 15.6 Mn KWH units 6100 KL Rainwater harvested 3.23 mw since inception per annum Rainwater Storage Tanks EV 184 two-wheelers & 3 four- wheelers for employees’ commute. 500 KL commissioned Replaced 12 buses till date 3rd Rain
Slide 47: Growth With Responsibility
Growth With Responsibility ▪ Till date Served 87 million meals to underprivileged children through flagship One for One Program, ‘Your Purchase Feeds…’ ▪ Local charity partners ✓ Akshaya Patra in India ✓ No Kid Hungry and Backpack Friends in US ✓ Magic Breakfast & Felix Project in UK ▪ Serving ~56k
Slide 48: Robust Corporate Governance
Robust Corporate Governance Awards & Accolades FY24 ~Rs. 99 crores India Risk Management Award from ICICI Lombard & CNBC-TV18 LEED’s PLATINUM & GOLD Certification 78% Dividend Payout (including interim and final dividend proposed in Q4 FY24) Dividend Payout Policy ‘Net Zero Energy Building’ certifie
Slide 49: Shareholding Pattern as on 31st March 2024
Shareholding Pattern as on 31st March 2024 Holding as on Key Shareholders Shareholding Pattern 31st-Mar-24 Nalanda India Fund Limited 9.3% 14.81% Promoter & Promoter Malabar India Fund Limited 5.5% 3.07% Group 0.39% Foreign Institutions (FPI, FII) Taiyo Greater India Fund 3.4% 2.18% & NRI Domestic I
Slide 50: Vaibhav Global Limited
Company: Investor Relations Advisors: Vaibhav Global Limited Adfactors PR Pvt. Ltd. Nitin Panwad, Group CFO Amit Sharma Nitin.panwad@vglgroup.com Amit.Sharma@adfactorspr.com Prashant Saraswat Disha Shah Head-Investor Relations Disha.shah@adfactorspr.com VAIBHAV GLOBAL LIMITED Prashant.saraswat@vglgr