Aditya Birla Fashion And Retail Ltd · NSE:ABFRL
Aditya Birla Fashion And Retail — Q1 FY22 Earnings Presentation
51 slides from Aditya Birla Fashion And Retail's earnings presentation, Jul 30, 2021
Slide 1: Outcome of the Board Meeting cover letter
July 30, 2021 BSE Limited National Stock Exchange of India Limited Scrip code: 535755 & 890148* Symbol: ABFRL & ABFRLPP1* Sub.: Outcome of the Board Meeting of Aditya Birla Fashion and Retail Limited (“the Company”) Ref.: 1. Regulation 30 (read with Schedule III - Part A), 33 of the Securities and E
Slide 2: Unaudited Standalone Financial Results Q1 FY22
ADITYA BIRLA. FASHION & RETAIL Aditya Birta Fashion and Retail Limited STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021 " in Crore Quarter ended Year ended Sr. June 30, 2021 March 31, 2021 June 30, 2020 March 31, 2021 Particulars No. (Unaudited) (Audited} (Unau
Slide 3: Notes to standalone financial results
Notes: 1 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 ame
Slide 4: Notes: Rights Issue 2020
10 Rights Issue - 2020 : a) Approval : On May 27, 2020, the Board approved fund raising by way of a Rights Issue. On June 25, 2020, it further approved the terms of the issue i.e. 9,04,65,693 equity shares of face value of" 10 each ["RES") at a price of" 110 per Rights Equity Share (including premiu
Slide 5: Independent Auditor's Review Report (standalone)
S R 8 C 81. CO LLP 14th Floor, The Ruby 29 Senapati Bapat Marg Dada r ( West) Chartered Accountants Mumbai-400 028, India Tel : +91 22 6192 0000 Fax : +91 22 6192 1000 Independent Auditor's Review Report on the Quarterly Unaudited Standalone Financial Results of the Company Pursuant to the Regulatio
Slide 6: Auditor's Review Report: Emphasis of Matter
SR BC& CO LLP Chartered Accountants 5. Emphasis of Matter We draw attention to Note 7 of the Statement, which describes management's assessment of the impact of COVID 19 pandemic on the Company's operations and cartying value of assets as at June 30, 2021. Our conclusion is not mo_dified in respect
Slide 7: Unaudited Consolidated Financial Results Q1 FY22
Adltya Birla Fashion and Retail Umlted STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2021 'I in Crore Quarter ena"" Year ended Sr. June 30, 2021 March 31, 2021 June 30, 2020 March 31, 2021 Particulars IUnauditedl !Audited) !Unaudited) !Audited) No. (Refer note
Slide 8: Consolidated segmentwise revenue, results, assets and liabilities
UNAUDITED CONSOLIDATED SEGMENTWISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER ENDED JUNE 30, 2021 "in Crore Quarter ended Year enaea Sr. June 30, 2021 March 31, 2021 June 30, 2020 March 31, 2021 Particulars No. (Unaudited! (Audited! (Unaudited! I Audited I (Refer note 131 (Refer note 3
Slide 9: Notes to consolidated financial results
Notes: 1 The above consolidated 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 a
Slide 10: Notes: Rights Issue 2020
10 Rights Issue - 2020: a) Approval : On May 27, 2020, the Board approved fund raising by way of a Rights Issue. On June 25, 2020, it further approved the terms of the issue i.e. 9,04,65,693 equity shares of face value of" 10 each ["RES"] at a price of !I!: 110 per Rights Equity Share (including pre
Slide 11: Independent Auditor's Review Report (consolidated)
SR BC & CO LLP 12th floor, The Ruby 29 Senapati Bapat Marg Chartered Accountants Dadar (West) Mumbai - 400 028, India Tel : +9122 6819 8000 Independent Auditor's Review Report on the Quarterly Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing
Slide 12: Auditor's Review Report continued
SR BC& CO LLP Chartered Accountants 5. Based on our review conducted and procedures perfonned as stated in paragraph 3 above and based on the consideration of the review reports of other auditors referred to in 7 below, nothing has come to our attention that causes us to believe that the accompanyin
Slide 13: Auditor's Review Report signature
SR BC& CO LLP Chartered Accountants The other auditor's conclusion on the financial results is not modified in respect of the above matter with respect to their reliance on the financial results/financial infonnation certified by the Management. Our conclusion on the Statement in respect of matters
Slide 14: Performance Highlights: resilience through second wave
Braced the 2nd wave impact with resilience; swifter recovery over first wave; 150% revenue growth YOY Performance Highlights 1. Q1 Sales recovery impacted by unprecedented disruption on account of localized lockdowns caused by fresh waves of COVID infection. a. Q1 consolidated revenue reported at Rs
Slide 15: Board approves results for quarter ended June 2021
The Board of Directors of the Company, at its meeting today, approved the results for the quarter ended 30th June 2021. These financials are post factoring in necessary adjustments under Ind AS 116. Consolidated Financials In Rs. Cr. Q1 FY 21 Q1 FY 22 Revenue 323 812 EBITDA -182 -145 PAT -410 -352 T
Slide 16: Business performance: e-commerce and other businesses
merchandise lines for digital consumers. Partnered e-commerce business grew to 3 times of LY, aided by joint marketing interventions with ecommerce partners. Other businesses – o Active Athleisure Innerwear segment reported a revenue jump of ~2x over LY. While the men’s segment continued to do wel
Slide 17: Press release disclaimer and brand overview
Van Heusen Innerwear, Athleisure and Active wear is establishing itself as India's most innovative and fashionable brand. The Company’s foray into branded ethnic wear business includes Jaypore and strategic partnerships with Designers ‘Shantanu & Nikhil’, ‘Tarun Tahiliani’ and ‘Sabyasachi’. Disclaim
Slide 18: Performance Highlights Q1 FY22
Performance Highlights Q1 FY22
Slide 19: Agenda: Distribution Network, Covid Update
Distribution Network Covid Update Market Update Q1 Highlights Performance of Key Portfolios Way forward Company Financials
Slide 20: India's widest distribution network
India’s 3 16 10 2 23 widest 7913 126 121 14 60 6 325 133 14 31 1 3 distribution 10 34 31 5 113 8 1 5 4 1 4 1 99 70 97 5 26 88 10 6 38 7 network 382 43 130 29 6 75 10 13 2,874 342 10 2 280 29 88 13 8.4 Q1 FY22 Brand Stores Pantaloons Stores 7 4 292 28 Footprint (million sq. ft.) 159 26,492 6,878 8.0
Slide 21: Agenda
Distribution Network Covid Update Market Update Q1 Highlights Performance of Key Portfolios Way forward Company Financials
Slide 22: Covid Update
Covid Update Comprehensive vaccination Awareness drive CAER* for Employees coverage • Spread awareness around • 4000+ beneficiaries • > 99% staff^ vaccinated COVID appropriate behavior • Testing, Ambulance, Doctor • 100% front-end staff • Established helpline for health consulting, Hospital bed, (~2
Slide 23: Agenda
Distribution Network Covid Update Market Update Q1 Highlights Performance of Key Portfolios Way forward Company Financials
Slide 24: Market Update
Market Update COVID 2nd wave Multi-channel models Sudden surge of fresh cases Businesses moving swiftly led to gradual yet stringent towards Omni-channel lockdowns; halted store model, bringing it to the core operations and dented of channel strategy consumer sentiments Scaling up Tier 2/3/4 Digital
Slide 25: Agenda
Distribution Network Covid Update Market Update Q1 Highlights Performance of Key Portfolios Way forward Company Financials
Slide 26: Q1FY22 Highlights
Q1FY22 Highlights More customers served digitally Digital channels of sales grew more than 2.5x Enhanced Omni-Channel coverage Augmented Omni channel with coverage spread across 1,300+ stores across brands Successful category extension Piloted into several new categories, developed around premiumisa
Slide 27: Q1FY22 | ABFRL
Q1FY22 | ABFRL In Rs. Cr. Q1 FY20 Q1 FY21 Q1 FY22 Revenue 2065 323 812 Growth% 151% EBITDA 332 -182 -145 EBITDA M argin 16.1% -56.3% -17.8% EBIT 129 -419 -383 PAT (Reported) 22 -410 -352 Total Comprehensive 16 -414 -352 Income • Higher revenue backed by (1) higher effective number of retail operatio
Slide 28: Q1FY22 | Key segments
Q1FY22 | Key segments Consolidated Financials NSV Growth EBITDA ( In Rs. Cr.) Q1 FY20 Q1 FY21 Q1 FY22 vs FY20 vsFY21 Q1 FY20 Q1 FY21 Q1 FY22 Lifestyle Brands 1006 190 435 -57% 129% 191 -68 -57 Other Businesses 205 47 120 -41% 157% -29 -37 -22 Madura Segment 1210 237 555 -54% 135% 161 -105 -79 Pantal
Slide 29: Q1FY22 | Cost savings
Q1FY22 | Cost savings Change Change In Rs. Cr. Q4 FY21 Q1 FY21 Q1 FY22 over Q4 over Q1 FY 21 FY21 Revenue from Operations 1822 323 812 -55% 151% Other Income 18 150 24 38% -84% Total Income 1839 473 836 -55% 77% COGS 845 190 400 -53% 111% Cost reduction of Rs. 174 Cr. in Employee Benefits Expense 24
Slide 30: Agenda
Distribution Network Covid Update Market Update Q1 Highlights Performance of Key Portfolios Way forward Company Financials
Slide 31: Portfolio summary: Lifestyle, Pantaloons, Other, Ethnic
Lifestyle Pantaloons Other Ethnic ― Outstanding Ecommerce ― Business affected by ― Continued to scale up ― Integration activity performance across prolonged lockdown Inner wear & Athleisure underway, on our path to channels & slower recovery in with resilience build a comprehensive large formats, ―
Slide 32: Performance of key portfolios: Lifestyle Brands
performance of key portfolios LIFESTYLE BRANDS
Slide 33: Lifestyle Brands Q1FY22 Update
— Revenue grew 2.3x to Rs. 435 Cr. (Vs. Rs. 190 Cr. LY) LIFESTYLE BRANDS — Retail L2L growth at 187% — Sales at ~45% of FY20 level Q1FY22 Update — Consistent building up of a winning casual wear product portfolio; casual wear share increased to 59% (Vs. 46% in LY) — Strengthening kids wear portfolio
Slide 34: Channel-wise revenue and loyalty base
YOY Q1FY20 Q1FY21 Q1FY22 Q1 Wholesale 349 35 67 Gr% 91% Channel- wise Retail 450 71 192 170% Revenue (in Others Rs. crore) 207 84 176 109% • Retail showed strong recovery while wholesale channel expected to come back by Q3 • Other channels growth primarily driven by strong Ecommerce performance Loya
Slide 35: Performance of key portfolios: Pantaloons
performance of ae key portfolios pantalaons ‘ Da yay
Slide 36: Pantaloons Q1FY22 update
— Aided by retail L2L of 156%, revenue grew 2.7 times to Rs. 220 Cr. (Vs. Rs. 82 Cr. LY) — Cost control measures helped mitigate COVID 2 impact — Category additions driving consumer value proposition — Home and Sarees being expanded across more stores — New offerings introduced across loungewear, in
Slide 37: Pantaloons sales mix
9% 27% 15% Q1 39% Q1 FY22 FY22 17% 8% 65% Men 20% Own Brands Women's Western MFL Women's Ethnic Others Kids Non Apps 10% 21% 33% 20% Q1 Q1 7% FY21 FY21 72% 18% 20%
Slide 38: Other Business Segments
OTHER BUSINESS SEGMENTS Active Athleisure Innerwear Youth Western Fashion Super premium Brands Ethnic wear
Slide 39: Innerwear | Athleisure
EAR | ATHLEISU VANHEUSEN
Slide 40: Active Athleisure Innerwear
ACTIVE ATHLEISURE INNERWEAR — Strong momentum despite COVID 2 disruption — Revenue 2x of LY — Ahead of pre-covid level — Athleisure and Active wear continued to experience significant consumer demand — Women category a strong growth pillar — Ecom revenue grew to ~3.6x of LY — Innovation focused mark
Slide 41: Youth Western Wear
Youth Western Wear — Established profitable model at the back of new agreed terms — Revenue grew to ~4x of LY — Ecom revenue more than doubled — Revenue grew more than 4 times over LY on the back of strong Ecom performance — Going forward — Increase share of local sourcing to drive margins — To expa
Slide 42: Super Premium Brands
Super Premium Brands — Total revenue grew by more than 5 times — Collective.in establishing itself as India’s premier luxury portal — Online Sales grew 5x — Initiating Market place model to build scale — Having established its profitability, plan now to expand the network
Slide 43: Ethnic
Ethnic — Revenue doubled on the back of strong Ecom performance — New categories gaining traction — Jewellery and Home grew ~2.5x — Poised for scale up of retail network — Taking the brand to alternate channels — Grow Digital network — Widen partnership with Collective — Pop up shops and Exhibition
Slide 44: Sabyasachi
Sabyasachi — Revenue grew ~4 times over LY — Apparel grew more than 3.5x — Jewelry & Accessory grew more than 5 fold — Opened its first international outlet in Dubai
Slide 45: Men's Premium Ethnic Wear Brand with Tarun Tahiliani
“Mens Premium Ethnic Wear Brand” In collaboration with Tarun Tahiliani To be launched this festive
Slide 46: Agenda
Distribution Network Covid Update Market Update Q1 Highlights Performance of Key Portfolios Way-forward Company Financials
Slide 47: Way forward – Digital transformation
Way forward – Digital transformation OMNI-CHANNEL SCALE OWN ECOM PROCESS DIGITIZATION Expand Omni-Enablement to Multi-brand App - Q4 2000 stores – Largest in Design, Merchandising & Supply India New Panaloons.com – Q3 chain HYPERLOCAL 2.0 LEVERAGE ECOM MARKETPLACES Hyperlocal 2.0 with advance featur
Slide 48: Way Forward – Building winning platform
Way Forward – Building winning platform ― Most comprehensive portfolio play in fashion industry with strong brands ― Drive brand growth through category expansion ― Accelerate expansion in FY22 ― Lifestyle brands to open 400+ stores; 90% franchisee led ― Pantaloons to add 60+ stores ― Ethnic busines
Slide 49: Agenda
Distribution Network Response to COVID Market Update Q1 Highlights Performance of Key Portfolios Way-forward Company Financials
Slide 50: Financials: ABFRL Consolidated
Financials ABFRL - Consolidated (in Rs. Cr.) Q1 FY20 Q1 FY21 Q1 FY22 Revenue from Operations 2065 323 812 Other Income 18 150 24 Total Income 2083 473 836 EXPENSES Cost of Materials Consumed 183 61 107 Purchases of Stock-in-Trade 707 53 526 Changes in Inventories 59 76 -233 Employee Benefits Expense
Slide 51: 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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