Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q1 FY24 Earnings Presentation
24 slides from Arvind Fashions's earnings presentation, Aug 10, 2023
Slide 1: Exchange filing cover letter
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Corporate Office: Du Parc Trinity, 8th Floor, 17, M.G Road, Bangalore – 560 001 Tel: +91-80-4155 0601, Fax: 91-80-4155 0651 Website: www.arvindfashions.com August 10, 2023 To, To, BSE Limited National Stock Exchange of India Ltd. Listing Dept. /
Slide 2: Q1 FY24 Results Presentation
Q1 FY24 RESULTS PRESENTATION Aug | 2023 Q1 FY24 RESULTS
Slide 3: Disclaimer
DISCLAIMER This document by Arvind Fashions Limited (‘the Company’) contains forward-looking statements that represent our beliefs, projections and predictions about future events or our future performance. These forward-looking statements are necessarily subjective and involve known and unknown ris
Slide 4: Agenda
AGENDA 01 02 03 Q1 Performance Highlights Q1 FY24 Results Way Forward Q1 FY24 RESULTS 3
Slide 5: Q1 FY24 Performance Highlights
Q1 FY24 PERFORMANCE HIGHLIGHTS Q1 FY24 RESULTS 4
Slide 6: FY24 Objectives – What We Have Set For Ourselves
FY24 OBJECTIVES – WHAT WE HAVE SET FOR OURSELVES Objectives • Focus on profitable revenue growth and aspiration to grow ahead of industry Sales & Profitability • Continue sharper focus on further expanding EBITDA & PAT margins • Drive higher market share through increased investments in advertising
Slide 7: Market & Economy Update
MARKET & ECONOMY UPDATE Slowdown in consumption demand Premiumization continues to be key differentiator across brands Slowdown in the online channel Early start of EOSS and higher discounting in market Q1 FY24 RESULTS 6
Slide 8: Q1 FY24 Business Highlights
Q1 FY24 BUSINESS HIGHLIGHTS QUARTERLY POWER CHANNEL-WISE GROWTH DRIVERS GROSS EBITDA SALES BRANDS PERFORMANCE MARGINS 4% sales Improvement in Strong growth in 30%+ growth in Continued progress on EBITDA at ₹ 116 growth Y-o-Y, leading to EBITDA margins by retail and footwear and 12% healthy sell-thru
Slide 9: AFL Continued Trajectory of Good Performance
AFL CONTINUED TRAJECTORY OF GOOD PERFORMANCE Sales ( ₹ in crores) 957 • Witnessed 4% sales growth largely led by department stores and retail channel 920 • Strong growth momentum in non-apparel categories (like footwear, accessories etc.) • Added 45 EBOs during Q1 Q1 FY23 Q1 FY24 Q1 FY24 RESULTS 8
Slide 10: Continuing with Improved Profitability
CONTINUING WITH IMPROVED PROFITABILITY EBITDA ( ₹ in crores) PBT and PAT (after minority interest) ( ₹ in crores) 116 13 14 -1 94 -16 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 PBT PAT (After minority interest) Gross margins improvement & op. leverage led to EBITDA margin higher by 190+ bps Higher tax on accou
Slide 11: Q1 FY24 - Groupwise Performance
Q1 FY24 - GROUPWISE PERFORMANCE (₹ in crores) Sales EBITDA EBITDA % Q1 FY24 Q1 FY23 % Growth Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Power Brands 760 749 2% 94 83 12.4% 11.1% Emerging Brands 197 171 15% 22 11 11.0% 6.1% Total 957 920 4% 116 94 12.1% 10.2% Operating leverage in power brands coupled with stro
Slide 12: Brand Highlights
Q1 FY24 PERFORMANCE HIGHLIGHTS BRAND HIGHLIGHTS
Slide 13: Brand Highlights
Brand Highlights • Continued domination in casual lifestyle category in its journey towards 2,000+ Crs NSV • Driving product innovation to premiumize the brand and significant investments in marketing initiatives • Investment in bottom wear continuing to deliver strong outcomes • Adjacent categories
Slide 14: Brand Highlights
Brand Highlights • Despite slowdown and lower wedding calendar, brand continued its journey of profitable growth • Further rollout of super premium ‘1851’ line yielded excellent results • Strong sell-thru’s in recently launched ‘Autopress’ product line and continued focus on superior retail experien
Slide 15: Brand Highlights
Brand Highlights • Launched new brand identity through new logo, design and brand positioning in SS’23 • Improvement in full price sell-thru’s in SS’23 despite slowdown in the market • Driving upgraded product designs to build stronger customer connect • Encouraging response to new collections by tr
Slide 16: Brand Highlights
Brand Highlights • Superior sales growth and profitability, despite market slowdown • Focus on excellent customer retail experience along with high quality product designs across 100+ stores in India • Encouraging response to ‘Tommy tailored’ line Q1 FY24 RESULTS 15
Slide 17: Brand Highlights
Brand Highlights • Premiumization aiding brand’s strong financial performance with industry leading full price sell-thru’s and retail LTL • Market leadership in bridge to luxury segment in Jeans, Tees and Innerwear segments • Continued strong partnership with brand ambassador - Disha Patani with lau
Slide 18: Brand Highlights
Brand Highlights • Record launch of ‘Rare Beauty’ brand exclusively on Sephora across its stores and NNNow.com • Leading player in the prestige segment with presence in 26 EBOs across key malls in the country • Strong engagement with women consumers through unique shopping experiences Q1 FY24 RESULT
Slide 19: Q1 FY24 Results
Q1 FY24 RESULTS Q1 FY24 RESULTS 18
Slide 20: Q1 FY24 - Performance Snapshot
Q1 FY24 - PERFORMANCE SNAPSHOT ( ₹ in crores) Q1 FY24 Q1 FY23 Revenue from Operations 957 920 Other Income 11 2 Total Income 968 922 EBITDA 116 94 PBT 14 13 Taxes 19 5 Minority Interest 12 9 PAT (16) (1) Sharp focus on improving profitability Q1 FY24 RESULTS 19
Slide 21: Tight Control on Working Capital
TIGHT CONTROL ON WORKING CAPITAL ( ₹ in crores) Jun’23 Jun’22 Mar’23 Inventory 1174 1013 1131 Inventory days 93 98 91 Receivables 451 549 560 Debtor days 46 56 49 GWC 1625 1562 1691 GWC days 139 154 140 Payables 916 996 1020 Creditor days 88 105 91 NWC 709 566 671 NWC days 52 49 49 Note for days cal
Slide 22: Way Forward
WAY FORWARD Q1 FY24 RESULTS 21
Slide 23: Way Forward
WAY FORWARD AFL Demand environment remains Improve profitability further by Momentum on retail network soft; expect trends to improve better full price sell-thru’s, expansion across brands through gradually by festival season operating leverage through cost the franchisee model optimization etc. Con
Slide 24: Thank You
ALVIND £ASHIONS THANK YOU