Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q3 FY20 Earnings Presentation
13 slides from Arvind Fashions's earnings presentation, February 2020
Slide 1: Arvind Fashions Limited Q3 FY20 Performance Highlights
Arvind Fashions Limited Q3 FY20 Performance Highlights Feb 2020 0
Slide 2: 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 3: Strategic Priorities – FY20
Strategic Priorities – FY20 • Cash generation Power Brands • Drive growth through category expansions • Accelerate profitable growth of Sephora & GAP Specialty Retail • Restructure Unlimited to control losses • Sharper portfolio Emerging Brands • Set up for profitable growth 2
Slide 4: Q3 FY20 - Performance Snapshot
Q3 FY20 - Performance Snapshot Without IndAS116 Impact IndAS116 Q3 FY19 Q3 FY20 Growth Q3 FY20 Sales (Rs Crs.) 1259 1135 (10%) 1135 EBITDA (Rs Crs.) 83 25 - 109 EBITDA % 6.6% 2.2% - 9.6% PBT (Rs Crs.) 15 -75 - -81 PAT (Rs Crs.) 7 -49 - -52 * Continuing business growth (7%) 3
Slide 5: Business Group-wise Performance
Business Group-wise Performance 4
Slide 6: Power Brands Performance Highlights
Power Brands Performance Highlights Power Brands 1. LTL: 7.6% 2. Double digit secondary sales growth, 10%, in non trade channels Q3 FY19 Q3 FY20 % Growth 3. Overall growth impacted by planned reduction in wholesale channel: (33%) 4. Strong retail expansion, added 50 Stores (Rs Crs.) SALES 723 655 (9
Slide 7: Specialty Retail Performance Highlights
Specialty Retail Performance Highlights Specialty Retail Sephora & GAP 1. Strong growth of 25%+ in Sephora & GAP with 3%+ EBITDA Q3 FY19 Q3 FY20 2. LTL: 8.3% 3. Both brands well poised to deliver 15%+ growth with improved profitability (Rs Crs.) SALES 355 349 Unlimited Execution of restructuring pla
Slide 8: Emerging Brands Performance Highlights
Emerging Brands Performance Highlights Emerging Brands 1. Corrections planned in Emerging Brands • One time royalty settlement • Old stock liquidation Q3 FY19 Q3 FY20 • Closure of unviable stores Mostly completed (Rs Crs.) SALES 134 119 2. Exit of four brands - Gant, Nautica, Elle & Izod, completed
Slide 9: Performance Update Leadership Categories
Performance Update Leadership Categories Premium Kidswear Innerwear Prestige Beauty 25%+ 20%+ 25%+ YTD FY19 YTD FY20 YTD FY19 YTD FY20 YTD FY19 YTD FY20 Q3: 25%+ Q3: 20%+ Q3: 30%+ 8
Slide 10: Distribution Footprint
Distribution Footprint Q3 FY20 Exit North Store Sq Ft (Lacs) Store Count Count 497 West Stores 1309 21.6 Store Count 260 Dept. Stores 3805 - East Store Count 155 MBO 10000+ - South Store Count Innerwear MBO 13500+ - 397 9
Slide 11: Financials – P&L
Comparable P&L IndAS116 All Figures in Rs Cr. Q3 FY20 Q3 FY19 Q3 FY20 Revenue from Operations 1135 1259 1135 Cost of Goods Sold 630 640 630 Employees' Emoluments 86 108 86 Others 394 428 310 Financials – EBIDTA 25 83 109 Margin 2.2% 6.6% 9.6% P&L Other Income Interest & Finance Cost 2 51 1 35 11 78
Slide 12: Q4 FY20 Outlook
Q4 FY20 Outlook • EBITDA margin to get back to double digit • Growth to continue in three out of four brands. Corrections in Arrow to be completed in Q4 Power Brands • All corrections will be completed in Q4. Power Brands will revert to high single to double digit growth and EBITDA % in FY21 • GAP &
Slide 13: Thank You!
Thank You!