Aditya Birla Fashion And Retail Ltd · NSE:ABFRL
Aditya Birla Fashion And Retail — Q4 FY2021 Earnings Presentation
71 slides from Aditya Birla Fashion And Retail's earnings presentation, May 28, 2021
Slide 1: Outcome of the Board Meeting
May 28, 2021 BSE Limited National Stock Exchange of India Limited Scrip code: 535755 & 890148 Symbol: ABFRL & ABFRLPP1 Sub.: Outcome of the Board Meeting of Aditya Birla Fashion and Retail Limited [“the Company”] Ref.: 1. Regulation 30 and 33 of the Securities and Exchange Board of India (Listing Ob
Slide 2: Statement of Audited Standalone Financial Results
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Slide 3: Standalone Statement of Assets and Liabilities
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Slide 4: Standalone Cash Flow Statement
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Slide 5: Notes to Standalone Results
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Slide 6: Notes to Standalone Results (continued)
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Slide 7: Independent Auditor's Report on Standalone Results
SR BC & CO LLP 12th Floor, The Ruby 29 Senapat1 Bapat Marg Dadar (West) Chartu•d Accountants Mumbai· 400 028, India Tel . +91 22 6819 8000 Independent Auditor's Report on the Quarterly and Year to Date Audited Standalone Financial Results of the Company Pursuant to the Regulation 33 and 52 of the SE
Slide 8: Independent Auditor's Report (continued)
SR BC & CO LLP Chartered Accountants compliance with Regulation 33 and 52 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecti
Slide 9: Independent Auditor's Report (continued)
SR BC & CO LLP Chartor..t Accountants We communicate with those charged with governance regarding, among other matters, the planned scope and timing oft.he audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also prov
Slide 10: Statement of Audited Consolidated Financial Results
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Slide 11: Consolidated Financial Results (continued)
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Slide 12: Consolidated Statement of Assets and Liabilities
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Slide 13: Consolidated Cash Flow Statement
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Slide 14: Notes to Consolidated Results
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Slide 15: Independent Auditor's Report on Consolidated Results
SR BC & CO LLP 12th Floor, The Ruby 29 Senapat, Bapal Marg Dadar (West) Chartered Accountants Mumbai - 400 02B, India Tel +91 22 6819 8000 Independent Auditor's Report on the Quarterly and Year to Date Consolidated Financial Results of the Company Pursuant to the Regulation 33 and 52 of the SEHi (Li
Slide 16: Independent Auditor's Report (continued)
SR BC & CO LLP Chartered Accountants Basis for Opinion We conducted our audit in accordance with the Standards on Auditing (SAs), as specified under Section 143( I 0) of the Companies Act, 2013, as amended ("the Act''). Our responsibilities under those Standards are further described in the "Auditor
Slide 17: Auditor's Responsibilities for the Audit
SR BC & CO LLP Chartered Accountants Auditor's Responsibilities for the Audit of the Consolidated Financial Results Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whed1er due to fraud or error, and to issue an auditor's re
Slide 18: Independent Auditor's Report (continued)
SR BC & CO LLP Chartered Accountants We communicate with those charged with governance of the Holding Company and such other entities included in the Statement of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit fin
Slide 19: Independent Auditor's Report (continued)
SR BC & CO LLP Chartered Accountants Our opinion on the Statement is not modified in respect of the above matters with respect to our reliance on the work done and the reports oflhe other auditors. The Statement includes the results for the quarter ended March 31, 2021 being the balancing figures be
Slide 20: Declaration on Unmodified Audit Opinion
May 28, 2021 BSE Limited National Stock Exchange of India Limited Scrip code: 535755 & 890148 Symbol: ABFRL & ABFRLPP1 Sub.: Declaration on behalf of Aditya Birla Fashion and Retail Limited [“the Company”] Ref.: 1. Regulations 33(3)(d), 52, 63 and other applicable provisions of the Securities and Ex
Slide 21: Press Release: Resilient quarterly performance with EBITDA growth of 51%
Aditya Birla Fashion and Retail reports resilient quarterly performance with EBITDA growth of 51% YoY, despite unprecedented disruption. Performance Highlights 1. Q4 continued with the strong recovery trend through the quarter until the disruption due to the second wave of COVID-19 led to localized
Slide 22: Press Release: Ethnic investment and financial performance
6. Strengthened play in ethnic wear segment with new investment of Rs. 520 Cr in partnerships with Sabyasachi and Tarun Tahiliani. Excluding these growth investments, debt actually was down to Rs. 134 Cr. Financial Performance The Board of Directors of the Company, at its meeting today, approved the
Slide 23: Press Release: Segment performance and outlook
demand for the category including comfort wear and athleisure. The business also expanded its distribution footprint by adding 5500+ new trade outlets during the year. On a full-year basis, the business recovered strongly and was ahead of last year levels, thus validating the strength of the brand V
Slide 24: Press Release Disclaimer
Disclaimer : Certain statements in this “Press Release” may not be based on historical information or facts and may be “forward looking statements” within the meaning of applicable securities laws and regulations, including, but not limited to, those relating to general business plans & strategy of
Slide 25: COVID Update
COVID Update Aditya Birla Fashion and Retail Limited is India’s largest pure-play fashion and lifestyle company with a strong bouquet of leading fashion brands and retail formats. The Company has a network of 3,212 stores, presence across approximately 31,000+ multi-brand outlets with 6,800+ point o
Slide 26: COVID Update: Response and Outlook
Own brands websites and third party channels of online sales were scaled rapidly to ensure consumers could safely shop our range of products from the safety and convenience of their homes While working remotely, teams worked to streamline business processes and ensured adherence to stringent sys
Slide 27: Disclaimer (continued)
considered as a recommendation that any investor should subscribe for or purchase any of the Company’s shares. The financial figures in this “Press Release” have been rounded off to the nearest Rs. one Crore. The financial results are consolidated financials unless otherwise specified.
Slide 28: Q4 FY21 Performance Highlights
Q4 FY21 Performance Highlights
Slide 29: Distribution Network
Distribution Network COVID Response Market Update Distribution Q4 & FY Highlights Network Performance of key portfolios Way Forward Company Financials
Slide 30: India's widest distribution network
2,866 India’s Brand Stores widest 3 16 2 9 23 346 distribution 71 13 123 13 60 6 140 14 1 3 1 Pantaloons Stores network 123 10 315 35 112 3 4 30 1 8 61 5 4 31,767 97 27 86 10 31 66 6 95 38 1 1 9 5 Multi-brand 6 77 10 385 Outlets 43 8.4 Q4 FY21 130 14 6,878 Footprint 2 10 292 86 13 SIs across (millio
Slide 31: COVID Response
Distribution Network COVID Response Market Update COVID Q4 & FY Highlights Response Performance of key portfolios Way Forward Company Financials
Slide 32: Response to COVID
Response to COVID Partner Product Collaborated with vendors, Introduced product categories landlords, digital partners and with world class anti-viral and external agencies to align with anti-bacterial fabrics to meet the the dynamic situation customer needs Society Digital Employee Volunteer Networ
Slide 33: Response to COVID: People support
Response to COVID Vaccination Medical Resources Close to 80% of eligible* Ramped up Testing support employees vaccinated; more through Tie-ups with partners vaccines being rolled out in coming months for all our Ensured availability of critical CAER Program employees health resources for our people
Slide 34: Market Updates
COVID Response Distribution Network Market Update Market Q4 & FY Highlights Updates Performance of key portfolios Way Forward Company Financials
Slide 35: Market Update
Market Update Covid 2nd wave Alternate Channels Products Geography Monthly run rate during the Pandemic accelerated digital Innovative products Relatively better performance in quarter ahead of last year, adoption amongst launched to cater to few markets; smaller Tier 1 & Emergence of 2nd wave consu
Slide 36: Q4 & FY Highlights
COVID Response Distribution Network Market Update Q4 & FY Q4 & FY Highlights Highlights Performance of key portfolios Way Forward Company Financials
Slide 37: ABFRL | Q4 Highlights
ABFRL | Q4 Highlights Strong recovery Covid Resurgence Despite covid impact in March, Resurgence of 2nd wave of covid led business achieved 99% of last to reduction in consumer footfalls year revenue level impacting the latter part of Q4FY21 Strengthened Ethnic Accelerated e-commerce Portfolio Two n
Slide 38: ABFRL | Q4 Performance (Consolidated)
ABFRL | Q4 Performance (Consolidated) In Rs. Cr. Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q4 FY20 Revenue 323 1028 2076 1822 1832 Growth% (QoQ) 218% 102% -12% Growth% (YoY) -84% -55% -20% -1% EBITDA -182 136 422 253 167 EBITDA M argin -56.3% 13.2% 20.3% 13.9% 9.1% EBIT -419 -106 190 0 -66 PAT (Comparable) -8
Slide 39: Key segments | Q4 Performance
Key segments | Q4 Performance Consolidated Financials NSV EBITDA EBITDA % ( In Rs. Cr.) Q4 FY20 Q4 FY21 Growth Q4 FY20 Q4 FY21 Growth Q4 FY20 Q4 FY21 Madura Lifestyle Brands 1072 1003 -6% 164 176 7% 15.3% 17.5% Other Businesses 157 214 36% -43 12 -27.5% 5.7% Madura Segment 1229 1217 -1% 121 188 55%
Slide 40: ABFRL | FY21 Highlights
ABFRL | FY21 Highlights Strengthened balance Product Innovation sheet Reduced Net debt by ~74% from Rs. Successful launched several new 2,511 Cr. in FY20 to Rs. 654 Cr. in products in line with changing FY21 consumer needs Deep cost Digital business model rationalization Executed cost reduction of R
Slide 41: ABFRL | FY21 Performance (Consolidated)
ABFRL | FY21 Performance (Consolidated) In Rs. Cr. FY20 FY21 Revenue 8788 5249 EBITDA 1277 628 EBITDA Margin 14.5% 12.0% EBIT 392 -335 PAT (Comparable) -165 -628 Extraordinary Items -108 PAT (Reported) -165 -736 One time tax impact in FY21: 1. Rs 68.8 Cr. due to one-time deferred tax due to non avai
Slide 42: Key segments | FY21 Performance
Key segments | FY21 Performance Consolidated Financials NSV EBITDA EBITDA % ( In Rs. Cr.) FY20 FY21 Growth FY20 FY21 FY20 FY21 Madura Lifestyle Brands 4626 2750 -41% 797 340 17.2% 12.3% Other Businesses 808 656 -19% -51 26 -6.3% 4.0% Madura Segment 5434 3405 -37% 746 365 13.7% 10.7% Pantaloons Segme
Slide 43: ABFRL | Debt Reduction
ABFRL | Debt Reduction ― Equity infusion of Rs. 2,250 Cr. during FY21 raised through rights issue and preference fund raise, utilized for : ― Investments into new ventures (Rs. 520 Cr.) ― Reduction in debt from Rs. 2,511 Cr. in FY20 to Rs. 654 Cr. in FY21 Investment of Rs. 520 Cr. into ethnic partne
Slide 44: ABFRL | Working Capital Management
ABFRL | Working Capital Management Particulars FY20 FY21 Change (YoY) Inventory 2,349 1,743 (606) Trade Receivables 840 722 (118) ‒ Focused on liquidating old inventory in H1 ‒ Deferred buying in line with Trade Payables 2,273 2,334 60 business recovery in H2 ‒ Introduced freshness in Q4 Trade worki
Slide 45: Cost Reduction | FY Highlights
Cost Reduction | FY Highlights Change In Rs. Cr. FY 20 FY 21 over FY20 Revenue from Operations 8788 5249 -40% Other Income 65 73 Total Income 8853 5322 -40% COGS 4224 2563 -39% Cost reduction of Rs. 1,221 in FY21 vs Employee Benefits Expense 1068 865 -19% FY20: Rent Expense 487 11 -98% • Rent expens
Slide 46: Performance of key portfolios
COVID Response Distribution Network Market Performance Update Q4 & FY of key Highlights portfolios Performance of key portfolios Way Forward Company Financials
Slide 47: Lifestyle, Pantaloons, Other Businesses, Ethnic
Lifestyle Pantaloons Other Ethnic Businesses Portfolio ahead of pre- Consolidated Aggressively gained Strong operational position through performance: covid numbers market share led by investments in iconic ‒ Brand strength ‒ Cost reduction brands “Sabyasachi” ‒ Working capital Innerwear performance
Slide 48: Lifestyle Brands
LIFESTYLE BRANDS LOUIS PHILIPPE
Slide 49: Lifestyle Brands: Q4FY21 Update
LIFESTYLE BRANDS Q4FY21 Update — Operated at 94% of the last year levels — Rs. 1,003 Cr. In Q4FY21 from Rs. 1,072 Cr. In Q4FY20 — Retail stores delivered industry leading growth of ~8% YoY ( ~-1.7% LTL) despite covid impact — EBITDA grew by ~7% from Rs. 164 Cr. (Q4FY20) to Rs. 176 Cr. ; — EBITDA mar
Slide 50: Lifestyle Brands: FY21 Update
— Revenue recovered to 60% of last year LIFESTYLE BRANDS levels — Rs. 2,750 Cr. in FY21 Vs. Rs. 4,626 FY21 Update Cr. in FY20 — EBITDA of Rs. 340 Cr. Vs. Rs. 797 Cr. Retail Network last year due to lower sales Q4 FY20 Q4 FY21 Area — Continued aggressive network expansion (,000 sq.ft.) 2832 3011 — Ad
Slide 51: Lifestyle Brands: Channel-wise Revenue
Q4FY21 FY21 Channel-wise Revenue (in Rs. crore) Channel-wise Revenue (in Rs. crore) Q4FY20 Q4FY21 FY20 FY21 Wholesale 411 245 Wholesale 1,749 497 Retail 458 494 Retail 1,953 1,392 Others 203 264 Others 924 861 Q4FY21 Performance — Led by innovative product launches, direct consumer channels (retail,
Slide 52: Pantaloons
F 9 /pantalans
Slide 53: Pantaloons: Q4 Update
— Revenue recovered to 95% of last year levels — LTL of -10.6% — Sales impacted in March due to second wave Q4 Update of COVID — EBITDA jumped 54% from Rs. 56 Cr. in FY20 To Rs. 86 Cr. led by strong cost reduction initiatives — EBITDA margin expanded by 560 bps from 8.9% in Q4FY20 to 14.5% in Q4FY21
Slide 54: Pantaloons: Q4 category mix
11.1% 31.3% 13.6% 36.0% Q4 Q4 FY20 FY20 60.6% Men 17.5% 8.1% Own Brands Women's Western Women's Ethnic 21.8% MFL Kids Others Non Apps 9.7% 13.7% 32.6% 37.0% Q4 Q4 FY21 FY21 59.3% 17.2% 8.1% 22.4%
Slide 55: Pantaloons: FY21 Performance
— Business recovered to 53% of LY — ~Rs. 1,859 Cr. in FY21 Vs. 3,514 in FY20 — Delivered EBITDA of Rs. 276 Cr. in FY21 Vs. Rs. 563 Cr. in FY20 FY21 Performance — Opened 19 new stores in FY21; closed 15 unviable stores — Refreshed brand with new retail Identity – Rolled out across 5 stores — Ecommerc
Slide 56: Pantaloons: FY21 category mix
9.6% 13.8% 30.8% 36.1% FY20 FY20 61.7% 18.7% 7.5% Own Brands Men 21.8% MFL Women's Western Women's Ethnic Others Kids Non Apps 9.3% 30.1% 15.6% 37.9% FY21 FY21 61.6% 16.5% 8.3% 20.7%
Slide 57: Other Business Segments
OTHER BUSINESS SEGMENTS Active Athleisure Innerwear Youth Western Fashion Super premium Brands Ethnic wear
Slide 58: Slide 58
Slide 59: Active Athleisure Innerwear
ACTIVE ATHLEISURE INNERWEAR — Quarterly revenue grew 56% YoY; FY21 revenue ahead of last year (up 3% YoY) — Continued expansion in trade channel ; Added 5500+ new outlets during the year — Work from home aided athleisure consumption — Higher consumer acceptance with increased visibility across digit
Slide 60: Youth Western Wear
Youth Western Wear — Quarterly revenue up by 7% YoY showing a strong recovery — Consistent aggressive growth trajectory, grew 80% YoY during the — With renewed terms with parent, business now quarter poised for growth — Opened new store in DLF Saket, Delhi — Full year revenue ahead of last year — Ag
Slide 61: Super Premium Brands
Super Premium Brands — Posted stellar performance – Q4FY21 revenue grew 100% YoY — Full year revenue ahead of last year — Strong improvement in profitability ; EBITDA grew ~64% — Ecommerce & Omni-Channel continued to gain traction — Thecollective.in grew 5 times — Continued offline expansion, Launch
Slide 62: Ethnic Wear
Ethnic Wear — Introduced Home category, sleep wear, lounge wear — Q4 revenue grew 72% on the back of 61% growth in E-com. revenue — Board approved fresh equity infusion to fund rapid growth — 10 new stores in FY22 — Recovery on track ; Business ahead of last year — Quarterly revenue grew at ~12% YoY
Slide 63: Sabyasachi
� SABYASACHI CALCUTTA
Slide 64: Sabyasachi
Sabyasachi — ABFRL closed the investment for 51% stake purchase in Sabyasachi brand during Q4FY21 — Business creating its long term growth plan — To create India’s first Global Luxury fashion brand
Slide 65: Tarun Tahiliani
TARUN TAHILIANI
Slide 66: Tarun Tahiliani
Tarun Tahiliani — Closed investment for strategic partnership within the brand ‘Tarun Tahiliani’ through: — 33.5% in the existing couture business — 80% stake in new entity to create a new brand in affordable premium men’s ethnic wear — Brand to be launched by festive season
Slide 67: Way Forward
COVID Response Distribution Network Market Update Way Forward Q4 & FY Highlights Performance of key portfolios Way Forward Company Financials
Slide 68: Way Forward by portfolio
Lifestyle Pantaloons Other Ethnic ― Continued product ― Wider and deeper Businesses innovation with focus on expansion into the ― Inner wear to accelerate ― Aggressive ramp-up of category extension, country distribution expansion acquired businesses premiumization & and strengthen casualization ― Ac
Slide 69: Company Financials
COVID Response Distribution Network Market Update Company Q4 & FY Highlights Financials Performance of key portfolios Way Forward Company Financials
Slide 70: Financials
Financials ABFRL - Consolidated In Rs. Cr. Q4 FY20 Q4 FY21 FY20 FY21 Consolidated Balance Sheet FY20 FY21 Revenue from Operations 1832 1822 8788 5249 Other Income 17 18 65 73 Net w orth 1,088 2,676 Total Income 1849 1839 8853 5322 Net Debt (net off Cash and Liquid Investment ) 2,509 530 EXPENSES Lea
Slide 71: 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
Aditya Birla Fashion and Retail — Q4 FY2021 Earnings Presentation on 6ix