Aditya Birla Fashion And Retail Ltd · NSE:ABFRL
Aditya Birla Fashion And Retail — Q1 FY2021 Earnings Presentation
47 slides from Aditya Birla Fashion And Retail's earnings presentation, Aug 13, 2020
Slide 1: Outcome of Board Meeting letter to stock exchanges
August 13, 2020 BSE Limited National Stock Exchange of India Limited Scrip code: 535755 & 890148 Symbol: ABFRL & ABFRLPP Sub.: Outcome of the Meeting of the Board of Directors of Aditya Birla Fashion and Retail Limited (“the Company”) held on August 13, 2020 Ref.: 1. Regulation 30 (read with Schedul
Slide 2: Statement of Unaudited Standalone Financial Results Q1 FY21
AOITYA BIRLA FASHION&. l[TAIL Aditva Blrla Fashion and Retail Limited STATEMENT OF UNAUDITED STANDALONE FINANCIAL R ESULTS FOR THE QUARTER ENDED JUNE 3D, 2020 ·-·----------- �------- -ua__ r__ _ _d� _ � In Crore -,d _ ___ Q rte e n e ----�- Yea;erniei! J Sr. Particular No. s , JUnnudlted) !Audited)
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 lnterim Financial Reporting" as prescribed under Section 11 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standard,) Rules, 2015, as ame
Slide 4: Independent Auditor's Review Report (standalone)
SR BC & CO LLP 12th Floor, The Ruby 29Senapati Bapat Marg Dadar (West) Chartered Accountants Mumbai - 400 028, India Tel :+912268198000 Independent Auditor's Review Report on the Quarterly Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obliga
Slide 5: Auditor's review report, emphasis of matter
SR 8 C & CO LLP Chartered Accountants 5. Emphasis of Matter We draw attention to Note 8 of the Statement which describes management's assessment of the impact of the COVID 19 pandemic on the Company's operations and carrying value of assets as at June 30, 2020. Our opinion is not modified in respect
Slide 6: Statement of Unaudited Consolidated Financial Results Q1 FY21
AOITYA BIRLA Aditya Birla Fashion and Retail Limited STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAl RESULTS FOR THE QUARTER ENDED JUNE 30, 2020 ·--.. "lnCrore Quarter ended Year ended Sr. Particulars June 30, 2020 March 31, 2020 June 30, 2019 Marth 31, 2020 No. (Unaudited! JAudlted) (Unaudited) (Audi
Slide 7: Consolidated Segmentwise Revenue, Results, Assets and Liabilities
UNAUDITED CONSOLIDATED SEGMENTWISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER ENDED JUNE 30, 2020 ,1n Crore Quarterended Vearended Particulars June 30, ZOZO March 31, 2020 June 30, 2019 March 31, 2020 (Audited! 1 (Unaudited) (Audited) . (Unaudited ) (Refer note lZ) _ _1_2_)-+-·--- _ -·
Slide 8: 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 am
Slide 9: Independent Auditor's Review Report (consolidated)
SR BC & CO LLP 12th f'loor, Tne Ruby 29 Senapati Bapat Marg Dadar (West) Chartered Accountants Mumbai - 400 028, India Tel :+912268198000 Independent Auditor's Review Report on the Quarterly Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Ob
Slide 10: Auditor's review report, conclusion and emphasis of matter
SR BC & CO LLP Chartered Accountants 5. Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the consideration of the review reports of other auditors referred to in paragraph 7 below, nothing has come to our attention that causes us to believe that the
Slide 11: Press Release: Structural shifts countering pandemic impact in Q1
Aditya Birla Fashion and Retail: Structural shifts countering pandemic impact in Q1; poised to emerge amongst strongest of the pack Performance Highlights 1. Q1 Sales and PAT impacted by unprecedented disruption on account of COVID-induced shutdowns 2. 80% of stores had resumed operations by the end
Slide 12: Press Release: Q1 FY21 sales and cost reduction
normalcy. By the end of June, nearly 80% of our network had re-opened. The results of this quarter should be seen in the above context. In Q1 FY21, the sales of the Company were at Rs. 323 Cr. As the pandemic struck, the Company embarked on a series of cost reduction initiatives. These include reneg
Slide 13: About Aditya Birla Fashion and Retail Limited
The Company’s reassessment of its cost structure during this quarter, continued strength of its brand portfolio, and accelerated digital transformation, along with successful completion of the rights issue, will help create a strong foundation to retain its position as the leading apparel player com
Slide 14: Performance Highlights
Te | Ea Performance Highlights
Slide 15: Distribution Network, Market Update, Q1-21 Performance, Way Forward
Distribution Market Q1-21 Performance Way Company Network Update Highlights of Key Portfolios Forward Financials
Slide 16: India's Finest Brands
India’s Finest Brands RALPH LAUREN TED BAKER h C) (ax, HACKETT nonDod J AY PORE Polo, DRY ak POWER DRESSING ADITYA BIRLA
Slide 17: India's widest distribution network
3 India’s 3 83 17 2 13 20 widest 12 52 2 1 134 107 7 14 14 3 1 114 284 1 31 6 distribution 10 36 98 4 1 8 5 4 61 1 1 9 92 68 89 3 25 10 5 37 network 364 43 124 24 6 74 8 14 2,662 342 9 1 296 31 73 13 8.0 Q1 FY21 Brand Stores Pantaloons Stores 6 6 245 27 Footprint (million sq. ft.) 150 23,700 6,754 7
Slide 18: Standing by our COVID warriors
Standing by our COVID warriors ABFRL dedicated its facilities to meet the rising need for PPE and coveralls for our frontline warriors Our staff was reskilled and machinery reengineered in record time to start producing 3-ply Single Use Face Masks, Cloth Masks and Coveralls Q1 FY21 Achievements 10 l
Slide 19: Distribution Network, Market Update, Q1-21 Performance, Way Forward
Distribution Market Q1-21 Performance Way Company Network Update Highlights of Key Portfolios Forward Financials
Slide 20: Market Update
Market Update Pandemic Blues Safety First As COVID spread, the Continued focus on lockdown sustained through offering hygienic and whole of April, bringing offline sanitized shopping business to a halt. Business environment as markets resumed across all segments opened in May post unlock once lockdo
Slide 21: Distribution Network, Market Update, Q1-21 Performance, Way Forward
Distribution Market Q1-21 Performance Way Company Network Update Highlights of Key Portfolios Forward Financials
Slide 22: Q1 Highlights
Q1 Highlights Cost Control actioned Ran focused cross functional initiatives on Immediate cost optimization across key line items of Sellex, overheads and advertising Accelerated Digitization Ramped up digital transformation agenda, drove impeccable and fast paced execution of key initiatives New wa
Slide 23: Immediate Focus
Immediate Safety and Health — Rolled out COVID assistance and emergency response program Focus (CAER) for providing assistance to employees and families — Stores ran on highest safety protocols – many stores covered by local media on quality of protocols Cost Reduction — Rentals: — Substantial savin
Slide 24: Strengthening the Balance Sheet
Successful closure of Rights Issue Strengthening the Balance Specifics Rs. 1000 Cr. rights @ Rs. 110 per share Sheet Funds First tranche of Rs. 496 Cr received on Status 31st July’20; Next tranche in Q4 Usage of Reduced equivalent debt Funds ≈ Listing of PPS listed as of 03rd August 2020 PPS
Slide 25: ABFRL | Q1 Highlights
ABFRL | Q1 Highlights In Rs. Cr. Q1 FY20 Q1 FY21 Revenue 2065 323 EBITDA 332 -182 EBITDA M argin 16.1% -56.3% EBIT 129 -419 PAT 22 -410 Revenue shortfall cushioned by Cost Saving initiatives
Slide 26: ABFRL | P&L Detailed
ABFRL | P&L Detailed Change Change In Rs. Cr. Q4 FY20 Q1 FY21 over Q4 Q1 FY20 over Q1 FY20 FY20 Revenue from Operations 1,832 323 -82% 2,065 -84% Other Income (including Rent Concession 17 179 18 benefits) Total Income 1,849 502 -73% 2,083 -76% Cost of Goods Sold 886 190 -79% 948 -80% Cost reduction
Slide 27: Key segments | Q1 Highlights
Key segments | Q1 Highlights NSV EBITDA ( In Rs. Cr.) Q1 FY20 Q1 FY21 Growth Q1 FY20 Q1 FY21 Madura Lifestyle Brands 1006 190 -81% 191 -67 Other Businesses 205 47 -77% -29 -37 Madura Segment 1210 237 -80% 161 -105 Pantaloons Segment 890 82 -91% 164 -72 Elimination -34 1 6 2 ABFRL Standalone 2065 320
Slide 28: Distribution Network, Market Update, Q1-21 Performance, Way Forward
Distribution Market Q1-21 Performance Way Company Network Update Highlights of Key Portfolios Forward Financials
Slide 29: Lifestyle Brands, Pantaloons, Others, Ethnic
Lifestyle Brands Pantaloons Others Ethnic Performance defined by innovation and agility Significant leap in Innerwear and Ecommerce journey athleisure continue Gearing up for new Launched Work from to gain market share launches home collections Pantaloons.com and partner channels Global brands Adopt
Slide 30: Lifestyle Brands
LIFESTYLE BRANDS ww LOUIS PHILIPPE Y Allen Solly Vauieuse
Slide 31: Lifestyle Brands
— 81% network operational by end of Q1, paramount importance given to safety and hygiene measures LIFESTYLE — Reached 30% of pre COVID sale run rate by June 2020 — Operational stores, on LTL basis are above 50% of pre BRANDS COVID levels in June 2020 — Product Innovation at core of strategy – — Bran
Slide 32: Channel-wise revenue and loyalty base
Q1 Wholesale Q1 FY20 349 Q1 FY21 35 Channel-wise Revenue (in Retail 450 71 Rs. crore) Others 207 84 Loyalty Base (lakh) Q1 FY21 186 Q1 FY20 156 49% of revenues from loyal customers *Wholesale includes Department Stores
Slide 33: Performance of key portfolios: Pantaloons
performance of key portfolios pantalmns
Slide 34: Pantaloons
— By the end of Q1, 256 stores resumed partial operations in line with local guidelines and with strong safety protocols PANTALOONS — Casualization a strong trend. Surge in demand for Kids wear. Significant increase in private label share — Strong cost control measures in place across all cost lines
Slide 35: Pantaloons category and brand mix
9% Men 13% 29% 35% Women's Western Q1 Women's Ethnic Q1 FY20 Kids FY20 64% 21% 7% Non Apps 22% 10% 21% 33% 20% Q1 Own Brands Q1 FY21 MFL 7% FY21 Others 17% 72% 20%
Slide 36: Other Business Segments: performance of key portfolios
performance of key portfolios
Slide 37: Global Brands
GLOBAL BRANDS — As of June, Global brands E-commerce business was at 140%+ of Pre COVID run rate against June last year — Impactful performance marketing and WhatsApp Commerce led to 100% increase in conversions on The Collective website — Accelerated E-Commerce presence for American Eagle, leading
Slide 38: Innerwear & Athleisure
— Higher demand for work from home categories – Athleisure mix grew by ~30% — June sales reached 83% of June last year — Clear indication of quickest recovery and very strong trajectory in the coming quarters INNERWEAR & ATHLEISURE — Robust E-commerce performance, June sales at 3x of last year — Bra
Slide 39: Ethnic Wear
ETHNIC WEAR Jaypore — Product curation underway — New store launch planned next quarter Shantanu and Nikhil — New ‘pret’ line S&N launched — E-commerce live, 2 stores slated to open in Q2
Slide 40: Distribution Network, Market Update, Q1-21 Performance, Way Forward
Distribution Market Q1-21 Performance Way Company Network Update Highlights of Key Portfolios Forward Financials
Slide 41: Way Forward
Way Digital Forward Acceleration Cost Optimization ≈ Cash Conservation
Slide 42: Digital Initiatives launched in Q1 (1/2)
Digital Initiatives launched in Q1 (1/2) Mobile Apps — VH and LP Apps launched Buy online Shop from Store — Other brand apps under development Place order on Nearest store with website OR Virtual order queries / Order Store kiosk shipped to nearest store Courier collects Store confirms order from st
Slide 43: Digital Initiatives launched in Q1 (2/2)
Digital Initiatives launched in Q1 (2/2) Omnichannel Personalization — Hyperlocal delivery — Personalized Merchandize — WhatsApp Commerce curation enabled on Pantaloons, The Collective websites
Slide 44: Distribution Network, Market Update, Q1-21 Performance, Way Forward
Distribution Market Q1-21 Performance Way Company Network Update Highlights of Key Portfolios Forward Financials
Slide 45: Financials
Financials In Rs. Cr. Q1 FY20 Q1 FY21 Revenue from Operations 2,065 323 Other Income 18 179 Total Income 2,083 502 EXPENSES Cost of Materials Consumed 183 61 Purchases of Stock-in-Trade 707 53 Changes in Inventories 59 76 Employee Benefits Expense 260 248 Finance Costs 94 126 Depreciation & Amortisa
Slide 46: 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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