FINANCIAL RESULTS NATIONAL
MUMBAI, MAHARASHTRA, INDIA
By IFAB MEDIA - NEWS BUREAU - August 8, 2023 | 72 15 minutes read
Performance Highlights of the Quarter
1- Sales grew across brands and formats despite unfavorable market.
a-11% YoY growth with revenue at Rs 3196 Cr for the quarter.
i-Standalone revenue grew 8% YOY.
2-Consolidated EBITDA for the quarter stood at Rs 353 Cr.
a-EBITDA margin was 11%.
3-ABFRL’s store network now 4000+ large and continues to expand.
a-Branded business network added 28 stores on a net basis in Q1.
i-Ethnic businesses added 12 stores to the network.
b-Pantaloons added net 3 stores to its network this quarter.
4-Company continued to expand its digital footprint
E-com sales grew 12% YoY with strengthened omnichannel play.
TMRW started driving value creation for its portfolio of brands through operational interventions.
Finacial Performance
The Board of Directors of the Company, at its meeting today, approved the results for the quarter ended 30th June 2023. These financials are post factoring necessary adjustments under Ind AS 116.
Financials – Q1
Standalone In Rs. Cr. |
Q1 FY23 |
Q1 FY24 |
Growth % (vs. LY) |
Consolidated In Rs. Cr. |
Q1 FY23 |
Q1 FY24 |
Growth % (vs. LY) |
Revenue |
2774 |
2987 |
8% |
Revenue |
2875 |
3196 |
11% |
EBITDA |
504 |
423 |
-16% |
EBITDA |
500 |
353 |
-29% |
PAT |
124 |
-49 |
|
PAT |
94 |
-162 |
|
The growth in quarterly revenue was driven by a strong pick-up in new businesses and consistent performance from established businesses, despite challenging market conditions. However, net profits for the quarter were affected by negative operating leverage, resulting from subdued sales for the Pantaloons business, as well as continued investments in TMRW and ethnic businesses.
Each of the business segments posted robust performance.
Pantaloons – The business demonstrated a resilient performance in Q1, recording sales of Rs. 1030 Cr and an EBITDA margin of 13.4%, despite a subdued demand environment across various markets. The private label portfolio showed promising results, with its overall share increasing to 65% from 62% the previous.
Youth Western wear segment consists of American Eagle and Forever In Q1, American Eagle achieved a 49% YoY revenue growth, expanding its availability to 40 exclusive stores and over 65+ department stores. Meanwhile, Forever 21 continues to prioritise operational efficiency and network rationalisation.
Innerwear & athleisure segment advanced with its aggressive growth strategy, recording a 3% retail LTL growth, despite the ongoing slowdown in the athleisure and activewear During the quarter, the brand expanded its reach by adding over 700 Multi Brand Outlets (MBOs), bringing its total presence to ~32700 trade outlets.
Outlook
We anticipate a rebound in discretionary spend with the onset of the festive season, propelling the company’s growth trajectory further in the second half. ABFRL remains committed to enhancing the value proposition for its customers along with persistently investing in building brands and improving operational efficiency. We remain focused on pursuing our long-term strategic agenda through expansion into newer markets, diversification across various segments and categories, and ensuring an elevated shopping experience to our customers. With a positive outlook on the growth prospects of both the Indian economy and the fashion apparel sector, we are determined to leverage our robust brand portfolio to drive consistent, sustainable growth.
About Aditya Birla Fashion and Retail Limited
ABFRL is part of a leading Indian conglomerate, The Aditya Birla Group. With revenue of Rs. 12,418 Cr. spanning retail space of 10.8 million sq. ft. (as on March 31, 2023), it is India’s first billion- dollar pure-play fashion powerhouse with an elegant bouquet of leading fashion brands and retail formats.
The Company has a network of 4,008 stores across approximately 33,874 multi-brand outlets with 6,837 point of sales in department stores across India (as on 30th June 2023).
It has a repertoire of India’s largest brands in Louis Philippe, Van Heusen, Allen Solly and Peter England, established over 25 years. Pantaloons is one of India’s leading fashion retailer.
Company’s international Brands portfolio includes - The Collective, Amongst India's largest multi- brand retailers of international brands and has long term exclusive partnerships with select brands such as Ralph Lauren, Hackett London, Ted Baker, Fred Perry, Forever 21, American Eagle, Reebok and Galeries Lafayette.
The Company’s foray into branded ethnic wear business includes brands such as Jaypore, Tasva & Marigold Lane. The company has strategic partnerships with Designers ‘Shantnu & Nikhil’, ‘Tarun Tahiliani’, ‘Sabyasachi’ and ‘House of Masaba’.
In addition, to cater to the needs of digitally native consumers, ABFRL is building a portfolio of Digital-first brands under its technology led ‘House of D2C Brands’ venture TMRW. TMRW is on a path to building a portfolio of Digital First brands in partnership with founders of emerging brands in the E-Commerce market. With a focus on Fashion & Lifestyle categories, TMRW is building a portfolio of the most loved consumer brands that tap into the significant growth potential in India and globally.