Aditya Birla Fashion And Retail Ltd · NSE:ABFRL
Aditya Birla Fashion And Retail — Q2 FY22 Earnings Presentation
54 slides from Aditya Birla Fashion And Retail's earnings presentation, Nov 3, 2021
Slide 1: Outcome of the Board Meeting
ADITYA BIRLA FASHION & RETAIL November 3, 2021 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 Secur
Slide 2: Statement of Unaudited Standalone Financial Results
Adltya 8lrla Fashion and Retal limited STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED SEmMBER 30, 2021 � in Crore Quarter ended Six months ended Year ended Sr. September 30, June 30, September 30, September 30, September 30, March 31, 2021 Particulars 2020 N
Slide 3: Standalone Statement of Assets and Liabilities
Notes: 1 Standalone Statement of Assets and Liabilities as at September 30, 2021 "in Crore Asat As at September 30, March 31, Particulars 2021 2021 (Unaudited) (Audited) A ASSETS I Non-current assets (a) Property, plant and equipment 498.36 534.50 (b) Capital work-in-progress 55.92 34.64 (c) Right-o
Slide 4: Standalone Statement of Cash Flows
2 Standalone Statement of Cash Flows for six months ended September 30, 2021 "in Crore Six months Six month ended ended Particulars September 30, September 30, 2021 2020 (Unaudited) (Unaudited) I Cash flows from operating activities Loss before tax (429.20) (775.88) Adjustments for: Depreciation and
Slide 5: Notes to standalone financial results
Notes: 3 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 6: Additional disclosures under Regulation 52(4)
13 Additional disclosures as per Regulation 63 read with Regulation 52 (4) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015: Quarter Quarter Quarter Six months Six month Year ended ended ended ended ended ended Particulars September 30, Ju
Slide 7: Auditor Review Report
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', 4th and 5th Floor, Unit No. 401, 403, 501, 502, L.B.S. Road, Kurla, Mumbai - 400 070 1. We have reviewed the unaudited financi
Slide 8: Auditor Review Report (continued)
Price Waterhouse & Co Chartered Accountants LLP 5. We draw your attention to Note 8 to the Standalone Financial Results, which describes the management's assessment of the impact of the outbreak of Coronavirus (COVID-19) on the business operations of the Company. In view of the uncertain economic en
Slide 9: Statement of Unaudited Consolidated Financial Results
ADITYA BIRLA Aditya Blrla Fashion and Retail Limited STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 2021 "In Crore Quarter ended Six months ended Year ended Sr. September 30, June 30, 2021 September 30, September 30, September 30, March 31, P
Slide 10: Consolidated Segmentwise Revenue, Results, Assets and Liabilities
UNAUDITED CONSOLIDATED SEGMENTWISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 2021 � In Crore Quarter ended Six months ended Year ended Sr. September 30, June 30, September 30, September 30, September 30, March 31, Particulars 2021 No. 2021 2021 2020
Slide 11: Consolidated Statement of Assets and Liabilities
Notes: 1 Consolidated Statement of Assets and liabilities as at September 30, 2021 �inCrore Asat Asat September 30, March 31, Particulars 2021 2021 (Unaudited) (Audited) A ASSETS I Non-current assets (a) Property, plant and equipment 535.97 574.71 (b) Capital work-in-progress 71.71 37.60 (c) Right-o
Slide 12: Consolidated Statement of Cash Flows
2 Consolidated Statement of cash Flows for six months ended September 30, 2021 'I: in Crore Six months Six months ended ended Particulars September 30, September 30, 2021 2020 (Unaudited) (Unaudited) I Cash flows from operating activities Loss before tax (459.01) (795.81) Adjustments for: Depreciati
Slide 13: Notes to consolidated financial results
Notes: 3 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 14: Notes (continued)
12 The consolidated financial results for the quarter and six months ended September 30, 2021 are not comparable with quarter and six months ended September 30, 2020 pursuant to the acquisition of subsidiaries by the Company during the quarter ended March 31, 2021. 13 Financial results have been pre
Slide 15: Auditor Review Report
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', 4th and 5th Floor, Unit No. 401, 403, 501, 502, L.B.S. Road, Kurla, Mumbai - 400 070 1. We have reviewed the unaudited consoli
Slide 16: 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-commerce
Slide 17: Auditor Review Report (continued)
Price Waterhouse & Co Chartered Accountants LLP (b) The consolidated financial statements of the Company for the year ended March 31, 2021 were audited by another firm of Chartered Accountants, who issued an unmodified opinion vide their report dated May 28, 2021. Our conclusion on the Consolidated
Slide 18: Performance Highlights: strong business rebound, EBITDA soars
Strong business rebound with 90% recovery over pre-COVID levels, EBITDA soars ~150% YoY to Rs. 338 Cr. Performance Highlights 1. Business recovery continues with easing mobility restrictions and consumers returning to stores a. Q2 consolidated revenue doubled YoY to Rs. 2054 Cr., (Q2 FY 21 at Rs. 10
Slide 19: Consolidated Financials
Consolidated Financials In Rs. Cr. Q2 FY 21 Q2 FY 22 Revenue 1028 2054 EBITDA 136 338 PAT -188 5 The quarter began with gradual recovery from COVID-19 2nd wave, with relaxed mobility restrictions and aggressive vaccination drive across the nation, sharply changing the consumer sentiment. This led to
Slide 20: Press release: segment performance
growth across online channels, the business has also gone for aggressive retail expansion in terms of trade and EBO outlets. Its e-commerce business grew 71% YoY. o Youth Western Wear segment, comprising Forever 21 and American Eagle, saw a strong YoY sales growth of 1.5x and 2x, respectively. Both
Slide 21: About ABFRL and disclaimer
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 22: Q2 FY22 Performance Highlights
Performance Highlights Q2 FY22
Slide 23: Distribution Network
= @ q Distribution Wy Network — » “ewe Distribution es Q? Highlights Performance of ana) Network, e q a A. & Key Portfolios Company Financials
Slide 24: India's widest distribution network
I n d i a ’s w i d e s t 3 14 distribution 11 22 2 8013 61 133 6 14 2 1 121 15 5 1 126 331 10 34 29 7 n e t wo r k 114 5 4 1 9 1 6 98 96 1 74 27 92 10 6 38 9 4 30 78 6 10 371 43 8.5 Q2 FY22 131 12 10 2,917 347 97 2 281 29 13 Retail Footprint 7 (million sq. ft.) 304 Brand Stores Pantaloons 6 169 29 8
Slide 25: Market Update
Y q Distribution w Network LS ‘2 a Market Update M arket— = gwé = Q2 Highlights oma’ Update wii Key Portfolios Company Financials
Slide 26: Market Update
Market Update Rising consumer spend Store footfalls rebounded Recovery in discretionary spends; 36%* Relaxed restriction and overall higher expenditure on clothing and improvement in safety protocol are footwear between July and August leading to growing footfalls Omni-channel gaining scale Physical
Slide 27: Q2 Highlights
Network | * oe — iad zz LY — Market Update 2 a . wa vient: Q2 Highlights Performance of a * q Key Portfolios Company Financials
Slide 28: Q2 Highlights
Q2 Highlights Business recovery Strengthened portfolio Business recovered to ~90%; ― Ramp up the casualization journey ― Branded Business recovered to over across all brands ~95% of normalized level with some ― Beefed up Non-Apparel offerings segments showing growth ― All ethnic businesses showing s
Slide 29: ABFRL Q2 Highlights
ABFRL Q2 Highlights In Rs. Cr. Q2FY20 Q2 FY21 Q2 FY22 (PreCovid) Revenue 2308 1028 2054 Growth% 100% EBITDA 356 136 338 EBITDA M argin 15.4% 13.2% 16.4% EBIT 131 -106 96 PAT -2 -188 5 Q2FY22 Performance Vs. Pre-COVID level ‒ Revenue recovered to ~90% ‒ Higher recovery in revenue Vs. Cost led to marg
Slide 30: ABFRL H1 Highlights
ABFRL H1 Highlights H1FY20 H1 FY21 H1 FY22 In Rs. Cr. (PreCovid) Revenue 4373 1351 2866 Growth% 112% EBITDA 687 -46 193 EBITDA Margin 15.7% -3.4% 6.7% EBIT 260 -525 -286 PAT 19 -599 -347
Slide 31: Key Segments Q2 Highlights | Revenue
Key Segments Q2 Highlights | Revenue NSV Growth Consolidated Financials ( In Rs. Cr.) Q2FY20 Q2 FY21 Q2 FY22 vsPreCovid vsFY21 (PreCovid) Lifestyle Brands 1254 531 1156 -8% 118% Other Businesses 209 175 235 12% 34% Madura Segment 1463 706 1391 -5% 97% Pantaloons Segment 915 369 665 -27% 80% Eliminat
Slide 32: Key Segments Q2 Highlights | EBITDA
Key Segments Q2 Highlights | EBITDA Consolidated Financials EBITDA EBITDA % ( In Rs. Cr.) Q2FY20 Q2FY20 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 (PreCovid) (PreCovid) Lifestyle Brands 218 39 188 17.4% 7.3% 16.3% Other Businesses 23 26 24 10.8% 15.1% 10.2% Madura Segment 240 65 212 16.4% 9.2% 15.2% Pantaloons
Slide 33: Key Segments H1 Highlights | Revenue
Key Segments H1 Highlights | Revenue NSV Consolidated Financials ( In Rs. Cr.) H1FY20 H1 FY21 H1 FY22 vsPreCovid Growth (PreCovid) Lifestyle Brands 2259 721 1591 -30% 121% Other Businesses 414 222 355 -14% 60% Madura Segment 2673 942 1946 -27% 106% Pantaloons Segment 1805 451 885 -51% 96% Eliminatio
Slide 34: Key Segments H1 Highlights | EBITDA
Key Segments H1 Highlights | EBITDA Consolidated Financials EBITDA EBITDA % ( In Rs. Cr.) H1FY20 H1FY20 H1FY21 H1FY22 H1FY21 H1FY22 (PreCovid) (PreCovid) Lifestyle Brands 408 -29 131 18.1% -4.1% 8.2% Other Businesses -7 -10 1 -1.6% -4.7% 0.4% Madura Segment 402 -40 132 15.0% -4.2% 6.8% Pantaloons Se
Slide 35: Performance of Key Portfolios
Performance of Key Portfolios
Slide 36: Lifestyle, Pantaloons, Other Businesses, Ethnic
Lifestyle Pantaloons Other Ethnic Phenomenal recovery in Continued to strengthen Other businesses already Clocked revenue of Rs. 58 retail channel – Grew at the Private label portfolio exceeded Pre-COVID sales Cr. in Q2 with annualized ~25% over Pre-COVID - key launches in Premium run rate of 250 Cr
Slide 37: Lifestyle Brands
performance of key portfolios Lifestyle Brands
Slide 38: Lifestyle Brands: expanding casual wear portfolio
— Excellent sales recovery – Revenue 92% of Pre-COVID — Grew 2.2x from LY to Rs. 1,156 Cr. — EBITDA at ~86% of Pre-COVID level - Rs. 188 Cr. Vs. Rs. Lifestyle — Expanding casual wear portfolio 39 Cr. LY – Inching towards normalised margin Brands — Growing Allen Solly Tribe, LP Athleisure & Active —
Slide 39: Channel-wise revenue
Q2 Channel-wise revenue Retail Channel surpasses Pre-COVID - Posted 25% growth (Rs. 506 Cr. Vs. Rs. Q2 Q2 Q2 404 Cr.) FY20 FY21 FY22 Wholesale 595 72 258 — Industry leading retail performance over past 4 quarters Retail 404 236 506 — Testimony to strength of brands and their everlasting relevance Ot
Slide 40: Tribe, Louis, VH Denim
TRIBE LOUIS VH DENIM ALLEN SOLLY LOUIS PHILIPPE VAN HEUSEN
Slide 41: Performance of Key Portfolios
performance of key portfolios
Slide 42: Pantaloons
Pantaloons — 665 12%Cr.growth in revenue; EBITDA up 35% — Revenue grew ~80% to reach at Rs. (Vs. Rs. 369 Cr. LY) — Sales recovered to ~73% of Pre-COVID led by buoyant consumer sentiment — festive — Strong traction during ongoing Retail season network posted 8% LTL despite tough market conditions — S
Slide 43: Category Mix and Ownership Mix
Category Mix Ownership Mix 10% 27% 16% 36% Q2 Q2 FY22 FY22 8% 65% 17% 21% Men Women's Western Own Brands Women's Ethnic MFL Kids Others Non Apps 9% 23% 18% 33% Q2 Q2 FY21 FY21 7% 18% 70% 22% Notes: ― Q2FY21 not true representative due to base effect ― Includes both retail & e-commerce
Slide 44: Marigold Lane, Street, Ajile, Armor Loungewear
MARIGOLD STREET AJILE LANE ARMOR LOUNGEWEAR
Slide 45: Other Business Segments
performance of key portfolios Other Business Segments Active Athleisure Innerwear Youth Western Wear Super Premium Brands Ethnic wear
Slide 46: Van Heusen Active Athleisure Innerwear
Van Heusen Active Athleisure Innerwear — Continued to build its strong momentum — Revenue grew by ~41% over LY — 46% higher than Pre-COVID levels — Women segment continues to be a growth pillar – Up 55% over LY — Aggressive expansion of Distribution network — Added 1300+ MBOs ; Present now in more t
Slide 47: Youth Western Wear
Youth Western Wear Brand of Choice amongst Gen Z & millennials — Revenue grew 1.5x over LY — To expand the presence across new towns — Piloted Franchisee-led store Industry leading LTL of 24% in this segment — Revenue doubled over Pre-COVID level ; EBITDA positive — To expand aggressively across all
Slide 48: Super Premium Brands
Super Premium Brands — Revenue grew more than 60% over Pre-COVID level — Achieved highest ever EBITDA in Q2FY22 – All constituent brands in the portfolio now EBITDA positive — Thecollective.in well on track to become India’s leading luxury Omni- channel retailer — Network rationalization yielding re
Slide 49: Ethnic wear
Ethnic wear — Revenue grew more than 50% over LY — Women’s & Jewelry category showed the highest growth — Expanded product offerings – Home, Jewelry — Piloted Kids wear & personal care — Revenue 3x of LY; Further growth through; — Assortment expansion — Distribution expansion via new formats
Slide 50: Sabyasachi
Sabyasachi — Business shown recovery across categories — Q2 revenue recovered to 91% of Pre-Covid — Launched new storeOperational in Dubai - Witnessing excellent traction Improvements — Accessory and Jewelry exhibiting fast paced recovery — Network rationalization yielding results — Renewed focus on
Slide 51: Men's Premium Ethnic Wear Brand
“Men’s Premium Ethnic Wear Brand” In collaboration with Tarun Tahiliani To be launched in November 2021 Operational Improvements
Slide 52: Company Financials
@ q Distribution : ay Network ae 8 Market Update | CO mpa ny” . | ea Q2 Highlights Performance of oe 4 | Finandials e ‘ Key Portfolios Company Financials
Slide 53: Financials | Consolidated
Financials | Consolidated Q2 Q2 H1 H1 Profit & Loss Account (In Rs. Cr.) Balance Sheet (In Rs. Cr.) Sep-20 M ar-21 Sep-21 FY21 FY22 FY21 FY22 Revenue from Operations 1028 2054 1351 2866 Networth 997 2,676 2,586 Other Income 78 25 228 50 Net Debt 3,159 530 873 Total Income 1106 2080 1579 2916 Lease L
Slide 54: 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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