Metro Brands Ltd. · NSE:METROBRAND
Metro Brands — Q1 FY2025 Earnings Presentation
43 slides from Metro Brands's earnings presentation, Aug 9, 2024
Slide 1: Cover letter to stock exchanges: presentation for Investor/Analyst Meet
August 9, 2024 To, To, The Manager The Manager Listing Department Listing Department BSE Limited, National Stock Exchange of India Phiroze JeeJeeBhoy Towers, Ltd, Dalal Street, Mumbai – 400001 (E) Exchange Plaza, 5th Floor, Plot No. Maharashtra, India C/1, G Block, Bandra Kurla Complex, Scrip code:
Slide 2: Metro Brands Limited Q1 FY2024-25 Earnings Presentation
METRO BRANDS LIMITED Q1 FY2024-25 EARNINGS PRESENTATION 9th August 2024
Slide 3: Safe Harbor statement
Safe Harbor statement • The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the Presentation. The information set o
Slide 4: Brief Overview
Brief Overview Q1 FY25 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others Appendix: Industry Overview
Slide 5: Our Journey
Our Journey • Strategic partnership with • Long term Foot Locker exclusive • Hits 800 stores and Distribution • Acquired Cravatex Marketcap of $4B Agreement with Brands Ltd • Crossed gross New Era • Exclusive license sales of Rs. 2500 for Fila crore • Exclusive tie up • Owns sportswear 2024 with Fit
Slide 6: Our story in numbers
Our story in numbers Company Facts Performance in Q1 FY25 6 Rs 576 crores Revenue from operations store formats 851 Rs 181 crores Stores ^ EBITDA 31.3% EBITDA margin 31 73% States & Union territories ^ Revenue contribution of in-house brands at MBOs 195 Cities ^ Rs 58 crores Q1: 2 new cities Ecommer
Slide 7: 65+ years of market presence
65+ years of market presence KEY ENABLERS STRONG BRAND WIDE REACH CAPITAL-LIGHT COMPETENT OPERATIONAL PORTFOLIO BUSINESS MANAGEMENT EFFICIENCY ❖ One-stop-shop family ❖ Pan-India presence through ❖ Long-standing ❖ Chairman Mr Rafique A. ❖ Among the few footwear retailer catering to the 851 Stores loc
Slide 8: One Stop Shop for all Footwear Needs
One Stop Shop for all Footwear Needs Jun’24 / Q1 FY25 (MBO) (MBO) (EBO) (MBO) (EBO) Target Customer Family Youth Premium Value Format Premium 324 240 211 67 9 No. of. Stores (38%) (28%) (25%) (8%) (1%) Cities 169 116 96 47 7 Price Range (INR)1 1,000 – 10,000 1,000 – 10,000 1,500 – 8,000 350 – 3,500
Slide 9: One Stop Shop for all Footwear Needs: Network of Retail Outlets
One Stop Shop for all Footwear Needs Network of Retail Outlets (as of Jun’24) PAN India Presence with 851 Stores I 195 Cities I 31 States and UTs (As of Jun’24) Zone wise1 Tier wise1 Location Wise1 OUR PRESENCE West Tier III Metro ___________________________ South 30% 15% cities 33% 31% High Street
Slide 10: Q1 FY25 Business Highlights
Brief Overview Q1 FY25 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others Appendix: Industry Overview
Slide 11: Q1 Business highlights
Q1 Business highlights Standalone Consolidated In INR Crore Q1 FY25 Q1 FY24 YoY Growth% Q1 FY25 Q1 FY24 YoY Growth% Revenue 563 564 -0.2% Revenue 576 583 -1.1% EBITDA 180 190 -4.8% EBITDA 181 187 -3.5% EBITDA% 32.0% 33.6% EBITDA% 31.3% 32.1% PAT 92 95 -3.3% PAT 92 93 -1.3% PAT% 16.4% 16.9% PAT% 16.0
Slide 12: Q1 Business Highlights (Standalone)
Q1 Business Highlights (Standalone) Revenue from Operations and Revenue per sq.ft Gross Profit and Gross Margins 5,000 4,450 5,200 4,800 4,500 59.9% 56.2% 60.0% 57.4% 60.0% 624 460 564 578 563 410 374 539 360 338 332 338 303 310 260 210 160 110 60 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q2 F
Slide 13: Q1 Business Highlights (Consolidated)
Q1 Business Highlights (Consolidated) Revenue from Operations Gross Profit and Gross Margins 59.1% 56.8% 59.9% 56.4% 59.5% 636 460 583 556 583 576 410 381 360 344 329 343 316 310 260 210 160 110 60 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Rev from Ops (INR Cr)
Slide 14: Other updates
Other updates Implementation of Bureau of Indian Standards for footwear ❑ The Department for Promotion of Industry and Internal Trade (DPIIT) issued BIS Quality Control Order (QCO) for footwear which was mandatory from 1st January 2024 for most categories of footwear. This was subsequently deferred
Slide 15: Partnership with New Era
Partnership with New Era About New Era ❑ New Era Cap, LLC. is an international lifestyle brand with an authentic sports heritage that dates back over 100 years with a global revenue of ~ $1 billion. The Company is headquartered in Buffalo, NY and operates facilities in Canada, Europe, Brazil, Japan,
Slide 16: Year wise Store additions - Standalone
Year wise Store additions - Standalone Stores 586 +6% 624 +18% 739 +13% 836 +2% 851 9 15 851 115 38 551 35 Opened^ 59 87 144 118 17 Closed^ 24 49 29 21 2 Relocation^ 3 12 13 8 2 FY2 FY21 FY22 FY23 FY24 Jun 24 Jun 24 FY20 FY21 FY22 FY23 FY24 Jun24 Metro 218 219 231 278 317 324 Mochi 145 145 162 199 2
Slide 17: Profit & Loss Statement (Standalone)
Profit & Loss Statement (Standalone) In INR Crore Particulars Q1 FY25 Q4 FY24 Q1 FY24 FY24 Revenue from Operations 563 578 564 2,305 Other Income 23 25 14 69 Total Income 586 602 579 2,374 EXPENSES Purchases of stock-in-trade 201 203 324 1,032 Changes in inventories of stock in trade 24 43 (98) (74)
Slide 18: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) In INR Crore Particulars Q1 FY25 Q4 FY24 Q1 FY24 FY24 Revenue from Operations 576 583 583 2,357 Other Income 23 24 14 71 Total Income 599 607 597 2,428 EXPENSES Purchases of stock-in-trade 206 212 328 1,052 Changes in inventories of stock in trade 27 42 (90) (6
Slide 19: Metro's Strengths
Brief Overview Q1 FY25 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others Appendix: Industry Overview
Slide 20: Our Key Strengths
Our Key Strengths 1 One of India's largest pan India footwear retailers1 with a brand appeal among aspirational consumer segments 2 Pivoting from primarily "Offline" to an "Omni-channel" enabled footwear & accessories retailer Wide range of brands and products catering to all occasions across age gr
Slide 21: One of India's largest pan India footwear retailers
1 One of India's largest pan India footwear retailers1 with a brand appeal among aspirational consumer segments 551 586 624 739 836 851 13% 14% 13% 16% 13% 15% 14% 15% 13% 14% 13% 14% 23% 21% 24% 22% 25% 23% 25% 22% 24% 22% 24% 22% …with diversified presence across regions2 31% 31% 31% 32% 32% 32% 3
Slide 22: Pivoting from Offline to Omni-channel retailer
2 Pivoting from primarily "Offline" to an "Omni-channel" enabled footwear and accessories retailer E-commerce – Online & Omnichannel “Highest number of Instagram Followers among key footwear ❑ Majority of online business comes through leading e-commerce retailers in India” (CRISIL) 2.2% 2.5% 8.1% 7.
Slide 23: Wide range of brands and products (1/3)
3 Wide range of brands and products catering to all occasions across age groups and market segments resulting in strong customer loyalty (1/3) Product presence across multiple categories through Own and Third party brands Own Brands Casual Formal Sports Accessories Third Party Brands Zeolite Fitflop
Slide 24: Wide range of brands and products (2/3)
3 Wide range of brands and products catering to all occasions across age groups and market segments resulting in strong customer loyalty (2/3) Own Brands contribute ~ 70-75% of total store product sales at MBOs Targeting Mid and Premium Segment – Average Realization (Rs.) 1,450 1,500 1,500 Q1 FY25 7
Slide 25: Wide range of brands and products (3/3)
3 Wide range of brands and products catering to all occasions across age groups and market segments resulting in strong customer loyalty (3/3) Repeat Sales to Members of Loyalty programs % Total Product Sales 56% 56% 57% 54% 55% 50% FY20 FY21 FY22 FY23 FY24 Q1 FY25 1 Loyalty programs have been digit
Slide 26: Asset light business with efficient operating model
4 Asset light business with an efficient operating model leading to sustained profitable growth 1 2 3 4 Outsourced Leveraging scale Identification of Variable Cost Manufacturing of operations store location Structure ✓ One of the few footwear ✓ One of the highest gross ✓ Robust store selection ✓ Lea
Slide 27: Efficient operating model through vendor engagements and TOC supply chain
5 Efficient operating model through deep vendor engagements and TOC based supply chain Long Standing Relationships with Vendors • 250+ vendors dealt with over last 3 fiscal years • 20+ years of relationship with certain vendors Demand Driven Inventory Norms New Designs and Styles • Optimum capital e
Slide 28: Platform of choice for third party brands
6 Platform of choice for third party brands looking to expand in India Image result for crocs logo ❑ Crocs is renowned worldwide for ❑ FitFlop is renowned for offering ❑ Fila is one of the fastest-growing ❑ Foot Locker, Inc. is an American its iconic clog silhouettes. shoes designed for all-day wear
Slide 29: Board of Directors
7 Board of Directors1 ARUNA BHAGWAN ADVANI, ARVIND KUMAR SINGHAL, MANOJ KUMAR MAHESHWARI, IQBAL HASANALLY DOSSANI, Independent Director Independent Director Independent Director Whole Time Director ❖ Holds bachelor’s degree in science ❖ Holds Bachelor of Engineering degree ❖ Holds bachelor’s degree
Slide 30: Experienced promoters and management team
7 Strong promoter background and an experienced and entrepreneurial management team with a proven track record RAFIQUE A. MALIK, FARAH MALIK BHANJI, ALISHA RAFIQUE MALIK, Chairman Managing Director President - Sports Division, E-Commerce and CRM ❖ Over 50 years of experience in the ❖ Over 20 years o
Slide 31: Strong track record of growth, profitability and financial discipline
8 Strong track record of growth, profitability and financial discipline Revenue from Operations Gross Profit and Gross Margins EBITDA and EBITDA Margins 17,500 16,800 10,150 15,450 19,800 18,700 54.9% 55.6% 54.9% 57.9% 58.1% 58.1% 27.7% 27.5% 21.5% 30.6% 32.0% 29.8% 2,357 1,369 2,127 1,235 681 703 1
Slide 32: Levers of growth
Brief Overview Q1 FY25 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others Appendix: Industry Overview
Slide 33: Key Strategies
Key Strategies 1 3 5 2 4 Store Inorganic E-Commerce Expansion Plans Opportunities Expansion Leverage Multi-channel Evaluation basis Target to open 225 Leverage existing Leverage Sports & Platform targeted returns, stores (excluding Fila) in capabilities to increase Athleisure Segment FY25 and FY26 o
Slide 34: To Summarize
To Summarize…. SOURCING & VENDOR WIDE RANGE OF RELATIONS PRODUCTS PREFERRED PARTNER ASSET LIGHT BUSINESS FOR THIRD PARTY MODEL BRANDS ALLIED PRODUCTS (Accessories, Foot care, PAN INDIA PRESENCE Shoe care, etc.) MULTI-CHANNEL BRAND VINTAGE RETAIL PLATFORM 33
Slide 35: Sustainability Initiatives & Others
Brief Overview Q1 FY25 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others Appendix: Industry Overview
Slide 36: CSR & Sustainability Initiatives (1/3)
CSR & Sustainability Initiatives (1/3) Processing of Old & Discarded Footwear (ODF) in an eco-friendly manner ❑ Under this project, ODF is collected & then sorted, cut, and again sorted material wise as below: • Rubber and Plastic materials are sent for recycling. • Other totally worn off parts are
Slide 37: CSR & Sustainability Initiatives (2/3)
CSR & Sustainability Initiatives (2/3) We are introducing digitized smart class We are enhancing English language skills We are supporting to increase the program and supporting some (reading, writing, speaking, listening) for employability quotient of more than 200 infrastructure creation / refurbi
Slide 38: CSR & Sustainability Initiatives (3/3)
CSR & Sustainability Initiatives (3/3) We are creating awareness and early detection of hypertension, diabetes & oral cancer through screening in 1200 cobblers as well as other vulnerable communities. We distributed more than 1600 pairs of footwear to the underprivileged people residing in Wada talu
Slide 39: Awards & Recognition
Awards & Recognition EY Entrepreneur of the Year IMAGES Retail Awards ET Great India Retail Award Award Most Admired Footwear Retailer Retail Brand of the Year ,2024 Consumer Products ,2024 and Retail category, 2024 India Retail Champions Award, IMAGES Fashion Awards dun & bradstreet ESG Awards Reta
Slide 40: Appendix: Industry Overview
Brief Overview Q1 FY25 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others Appendix: Industry Overview
Slide 41: Industry Overview (1/2)
Industry Overview (1/2) Low per capita footwear consumption in India as compared to other countries Per Capita footwear consumption India Per Capita Consumption of Footwear (2019) Per capita consumption of footwear (pairs) 8.1 6.4 2.0 – 2.1 6.2 6.2 1.9 5.8 1.6 4.3 4.0 1.2 3.3 3.2 2.5 1.9 USA Japan U
Slide 42: Industry Overview (2/2)
Industry Overview (2/2) Organized Retail Penetration - Footwear Segment wise market composition Category wise market composition In Percentage (%) 10% 10% 10% 6% 7% 8% 38% 9% 11% 13% 35% 30% 32% 34% 31% 33% 23% 27% 28% 23% 62% 60% 58% 56% 56% 51% FY15 FY20 FY21 FY22P FY25P FY15 FY20 FY25P FY15 FY20
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