Metro Brands Ltd. · NSE:METROBRAND
Metro Brands — FY2024 Earnings Presentation
52 slides from Metro Brands's earnings presentation, May 22, 2024
Slide 1: Cover letter to stock exchanges
May 22, 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: 54
Slide 2: FY 2023-24 Earnings Presentation
FY 2023-24 EARNINGS PRESENTATION 22nd May 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: Metro's Strengths
Brief Overview Q4 & FY24 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others Appendix: Industry Overview
Slide 5: Our Journey
Our Journey • Strategic partnership with FEET ON THE GROUND. Foot Locker • Hits 800 stores and • Acquired Cravatex Marketcap of $4B EYES ON THE FUTURE. Brands Ltd • Crossed gross • Exclusive license sales of Rs. 2500 crore • Exclusive tie up for Fila with Fitflop • Owns sportswear • Hits 600 stores
Slide 6: Our story in numbers
Our story in numbers Company Facts Performance in FY24 5 Rs 2,357 crores Revenue from operations store formats^ 10.8 % YOY growth 836 Rs 703 crores Stores ^ EBITDA 29.8 % EBITDA margin 31 73% States & Union territories ^ Revenue contribution of in-house brands at MBOs ^ 193 Cities^ 33% Q1: 8 new cit
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 836 Stores loc
Slide 8: One Stop Shop for all Footwear Needs
One Stop Shop for all Footwear Needs Mar’24 / FY24 (MBO) (MBO) (EBO) (MBO) (EBO) Target Customer Family Youth Premium Value Format Premium 317 237 208 66 8 No. of. Stores (38%) (28%) (25%) (8%) (1%) Cities 166 115 94 47 7 Price Range (INR)1 1,000 – 10,000 1,000 – 10,000 1,500 – 8,000 350 – 3,500 350
Slide 9: One Stop Shop for all Footwear Needs
One Stop Shop for all Footwear Needs Network of Retail Outlets (as of Mar’24) PAN India Presence with 836 Stores I 193 Cities I 31 States and UTs (As of Mar’24) Zone wise1 Tier wise1 Location Wise1 OUR PRESENCE West Tier III Metro ___________________________ South 30% 15% cities 33% 31% High Street
Slide 10: Q4 & FY24 Business Highlights
Brief Overview Q4 & FY24 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others Appendix: Industry Overview
Slide 11: MBL Standalone - Excluding effect of Fila demerger
MBL Standalone - Excluding effect of Fila demerger Q4 Full year In INR Crore Q4 FY24 Q4 FY23 YoY Growth% FY24 FY23 YoY Growth% Revenue 572 514 11.2% Revenue 2,275 2,052 10.9% EBITDA 177 152 15.9% EBITDA 741 680 8.9% EBITDA% 30.9% 29.7% EBITDA% 32.6% 33.2% PAT 95 82 17.0% PAT 392 373 5.1% PAT% 16.7%
Slide 12: MBL Standalone – Including effect of Fila demerger
MBL Standalone – Including effect of Fila demerger Q4 Full year In INR Crore Q4 FY24 Q4 FY23 YoY Growth% FY24 FY23 YoY Growth% Revenue 578 527 9.6% Revenue 2,305 2,071 11.3% EBITDA 166 142 17.2% EBITDA 703 667 5.4% EBITDA% 28.8% 26.9% EBITDA% 30.5% 32.2% PAT 165 66 148.7% PAT 418 354 18.0% PAT% 28.5
Slide 13: MBL Standalone – Including effect of Fila demerger
MBL Standalone – Including effect of Fila demerger Business Highlights ❖ Liquidation of excess inventory of Fila is slightly delayed & will be substantially completed by end of next EOSS in Q2FY25. ❖ As at Mar24, 3 FILA EBO stores were operational (all COCO). We expect to close 1 more FILA EBO in Q1
Slide 14: Consolidated Business Highlights
Consolidated Business Highlights Q4 Full year In INR Crore Q4 FY24 Q4 FY23 YoY Growth% FY24 FY23 YoY Growth% Revenue 583 544 7.1% Revenue 2,357 2,127 10.8% EBITDA 160 144 10.7% EBITDA 703 681 3.2% EBITDA% 27.4% 26.5% EBITDA% 29.8% 32.0% PAT 156 69 126.3% PAT 415 365 13.7% PAT% 26.7% 12.6% PAT% 17.6%
Slide 15: Q4 & Full year Business Highlights (Standalone excluding Fila)
Q4 & Full year Business Highlights (Standalone excluding Fila) Revenue from Operations and Revenue per sq.ft Gross Profit and Gross Margins 5,700 4,900 5,750 5,050 5,000 4,450 5,200 4,800 60.0% 57.5% 59.7% 57.2% 60.0% 57.1% 60.3% 58.0% 460 616 577 556 572 410 372 497 514 532 344 463 360 333 332 298
Slide 16: Q4 & Full year Business Highlights (Consolidated)
Q4 & Full year Business Highlights (Consolidated) Revenue from Operations Gross Profit and Gross Margins 59.7% 57.4% 59.2% 55.9% 59.1% 56.8% 59.9% 56.4% 636 460 599 583 583 381 544 556 410 355 508 476 360 344 329 303 304 316 310 273 260 210 160 FY23: 2,127 FY24: 2,357 110 FY23: 1,235 ; 58.1% FY24: 1
Slide 17: Strategic partnership with Foot Locker
Strategic partnership with Foot Locker About Footlocker ❑ Foot Locker, Inc. is an American premium sports & athleisure retailer with 50-year history, global revenue of ~ $8 billion and 2,600 retail stores with operation in 26 countries across North America, Europe, Asia, Australia, and New Zealand.
Slide 18: Update on implementation of Bureau of Indian Standards for footwear
Update on 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. ❑ However, as per recent notificati
Slide 19: Year wise Store additions - Standalone
Year wise Store additions - Standalone Stores 504 +9% 551 +6% 586 +6% 624 +18% 739 +4% 766 +4% 795 +4% 826 +1% 836 FY24 : 97 Opened^ 95 57 59 87 144 31 33 33 21 118 Opened Closed^ 10 10 24 49 29 4 4 2 11 21 Closed Relocation^ 3 - 3 12 13 1 1 2 4 8 relocations FY19 FY20 FY21 FY22 FY23 Jun23 Sep23 Dec
Slide 20: Profit & Loss Statement (Standalone including Fila)
Profit & Loss Statement (Standalone including Fila) In INR Crore Particulars Q4 FY24 Q3 FY24 Q4 FY23 FY24 FY23 Revenue from Operations 578 624 527 2,305 2,071 Other Income 25 15 17 69 53 Total Income 602 639 544 2,374 2,124 EXPENSES Purchases of stock-in-trade 203 304 209 1,032 1,034 Changes in inve
Slide 21: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) In INR Crore Particulars Q4 FY24 Q3 FY24 Q4 FY23 FY24 FY23 Revenue from Operations 583 636 544 2,357 2,127 Other Income 24 16 19 71 54 Total Income 607 651 563 2,428 2,182 EXPENSES Purchases of stock-in-trade 212 303 220 1,052 1,066 Changes in inventories of st
Slide 22: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Balance Sheet In INR Crore As at As at As at As at Particulars March 31, March 31, Particulars March 31, March 31, 2024 2023 2024 2023 Non-current assets Equity Property, plant and equipment 350 298 Equity share capital 136 136 Goodwill 41 41 Other equity 1,728 1,412 Cap
Slide 23: Cash Flow statement (Consolidated)
Cash Flow statement (Consolidated) In INR Crore For the year ended For the year ended Particulars March 31, 2024 March 31, 2023 Cash flow from Operating Activities Profit before tax for the year 462 489 Add: Non-cash items/re-classification 261 205 Operating profit before working capital changes 723
Slide 24: Metro's Strengths
Brief Overview Q4 & FY24 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others Appendix: Industry Overview
Slide 25: 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 26: 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 13% 14% 13% 16% 13% 15% 14% 15% 13% 14% 23% 21% 24% 22% 25% 23% 25% 22% 24% 22% …with diversified presence across regions2 31% 31% 31% 32% 32% 32% 31% 33% 33% 33% 33% 3
Slide 27: Pivoting from primarily Offline to an Omni-channel enabled 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) 1.7% 2.5% 7.3% 8.
Slide 28: 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 Skechers Adidas
Slide 29: 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 through 5 different Brand Outlets Average Realization P
Slide 30: 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% 55% 56% 54% 50% FY20 FY21 FY22 FY23 FY24 1 Loyalty programs have been digitized and thu
Slide 31: Asset light business with an 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 32: Efficient operating model through deep vendor engagements and TOC based 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 33: Platform of choice for third party brands looking to expand in India
6 Platform of choice for third party brands looking to expand in India Why brands prefer Metro platform Successful brand partnership Market Store position economics Number of Crocs EBOs ❑ Metro entered into an agreement with Crocs in Apr 2015, as amended by way of an addendum agreement entered in 20
Slide 34: 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 35: Strong promoter background and experienced 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 36: 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 37: Levers of growth
Brief Overview Q4 & FY24 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others Appendix: Industry Overview
Slide 38: 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 39: 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 38
Slide 40: Sustainability Initiatives & Others
Brief Overview Q4 & FY24 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others Appendix: Industry Overview
Slide 41: CSR & Sustainability Initiatives (1/7)
CSR & Sustainability Initiatives (1/7) Environment 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 of
Slide 42: CSR & Sustainability Initiatives (2/7)
CSR & Sustainability Initiatives (2/7) Solar rooftops installed at both of our warehouses with a combined capacity of 240 KW. The solar rooftops generated 221 MWh of power. Distributed footwear pairs to more than 2350 underprivileged children residing across Mumbai and Palghar districts. 41
Slide 43: CSR & Sustainability Initiatives (3/7)
CSR & Sustainability Initiatives (3/7) Health & Well-being Launched project “Ek Kadam Aage” to empower 150 Mumbai Railway Station based Shoe Shiners covering the aspects of their livelihood, healthcare and financial literacy trainings Through another project, we created awareness, educated, and enro
Slide 44: CSR & Sustainability Initiatives (4/7)
CSR & Sustainability Initiatives (4/7) Health & Well-being Contributed towards capex for building a Head and Neck Cancer Hospital in Mumbai. 43
Slide 45: CSR & Sustainability Initiatives (5/7)
CSR & Sustainability Initiatives (5/7) Health & Well-being We are created awareness and early detection of hypertension, diabetes & oral cancer through screening in more than 1400 cobblers as well as other vulnerable communities. We donated footwear pairs to more than 1250 children residing in 41 ch
Slide 46: CSR & Sustainability Initiatives (6/7)
CSR & Sustainability Initiatives (6/7) Education We supported more than 85 children of under privileged families with their school fees and uniform expenses. We supported a college to construct a new classroom to decongest the existing ones, so that school children can study comfortably. 45
Slide 47: CSR & Sustainability Initiatives (7/7)
CSR & Sustainability Initiatives (7/7) Education We supported more than 200 trainees by providing them practical exposure We supported two rural schools of Satara & Sindhudurg districts of through on-the-job training at Metro Brands Ltd retail outlets, thus enhancing their Maharashtra, to introduce
Slide 48: Awards & Recognition
Awards & Recognition Forbes India Leadership Awards 2022 Recognition: Leadership EY Entrepreneur of the Year Award Farah Malik Bhanji and Alisha Malik won the Nissan Joseph , CEO featured in Consumer Products GenNext Entrepreneur award for a Entrepreneur Magazine and Retail category, 2024 successful
Slide 49: Appendix: Industry Overview
Brief Overview Q4 & FY24 Business Highlights Metro’s Strengths Levers of growth Sustainability Initiatives & Others Appendix: Industry Overview
Slide 50: 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 51: 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
Slide 52: Thank You
Crocs 4% Se a metro BRANDS