Performance Highlights for the Quarter
1. Company posts 16% YoY growth with revenue at Rs. 4167 Cr. for the quarter driven by new businesses.
a. Overall market remained subdued leading to modest growth for
the traditional portfolio

2. Consolidated EBITDA for the quarter stood at Rs. 605 Cr.
a. EBITDA margin was 14.5% vs 13.0% LY led by festive shift and strong focus on profitability measures
i. Standalone EBITDA margin expanded 315 bps YoY to reach 17.4%

3. Brands continue to strategically expand in key markets while also improving the health of the network by closing non-performing stores
a. Overall network grew to 4753 stores including TCNS stores
i. Lifestyle Brands added net 36 stores
ii. Net addition of 7 stores for Pantaloons and 14 for Ethnic brands other than TCNS

4. New business segments are a pivotal growth driver for the company
a. Ethnic portfolio grew to 2.9 times of LY (43% YoY growth excluding TCNS)
b. Reebok revenue up three folds over LY
c. TMRW’s portfolio surged to 3.7 times of LY

5. Brands significantly increased their brand investments this quarter with new, impactful marketing campaigns
a. Strong campaigns by the brands during the cricket World Cup
b. TASVA launched national multi-media campaign
c. Jaypore unveiled a new marketing campaign #ReclaimYourRoots

Financial Performance
The Board of Directors of the Company, at its meeting today, approved the results for the quarter ended 31st December 2023. These financials are post factoring necessary adjustments under Ind AS 116.

Our strategic portfolio, built over the last few years, has continued to play a vital role in driving growth for the company, despite prolonged softness in the demand environment. Strategic cost control measures and improved gross margins across businesses have contributed to EBITDA margin expansion this quarter. Net profit for the quarter was impacted due to increased interest costs from higher borrowings.

• Lifestyle brands – Sales stood at Rs. 1815 Cr., while EBITDA for Q3 was 349 Cr., a growth of 10% vs LY. EBITDA margin for the business expanded by ~230 bps YoY to reach 19.2%, led by better value realizations and focus on driving growth in high profitability channels. Brands maintained their leadership position in the market by consistently ranking among the top brands in all major department stores (DS). The expansion momentum for the brands continued despite tough market conditions, with a net addition of 36 stores to the network. Brands continued to craft compelling consumer-facing narratives for different occasions, driving brand salience and walk-ins into stores.

• Pantaloons – The business recorded sales of Rs. 1297 Cr., up 12% over last year while EBITDA grew 40% to reach Rs. 235 Cr. led by sharp markdown reductions and effective cost control measures.
EBITDA margin expanded by 360 bps YoY to reach 18.1%. LTL for the business was 3% as it continued to focus on product enhancements and driving higher conversions. Pantaloons network grew to 446 stores this quarter as the business focused on overall improvement of the health of the network.

• Youth Western wear segment consists of American Eagle and Forever 21. American Eagle achieved a 34% YoY revenue growth led by strong distribution expansion and consumer engagement. Brand American Eagle added 10 stores to the network and is now available at 59 stores and 100+ DS doors. Forever 21, though, continued to face headwinds in a tough market while organically driving operational rigor.

• Reebok posted another quarter of 100+ Cr sales, driven by continued distribution expansion and improved store throughputs. The brand is now available at 160+ stores and ~850 point of sales
across DS and Multi brand outlets (MBOs). Brand expanded its product portfolio by launching high performance footwear for cricket and badminton in Q3.

• Super premium brands, which include the multi-brand format “The Collective” and other super-premium brands, delivered consistent performance with a revenue growth of 16% YoY. E-com website thecollective.in witnessed 50% growth YoY, strengthening its leadership position in the segment.

• Innerwear & athleisure segment sales were impacted due to softness in the athleisure category, while the Innerwear category grew 5% YoY. The brand’s inaugural celebrity campaign starring
Hardik Pandya received over 250+ Mn views on digital platforms, resulting in heightened engagement and awareness. In Q3, the brand expanded its reach by adding over 700 MBOs, increasing its total presence to ~34300 trade outlets.

• Ethnic businesses grew 43% YoY this quarter (excluding TCNS), driven by network expansion and strong traction due to festive & wedding season across brands. Sabyasachi grew 43% YoY led by
strong LTL growth on the back of strong appeal for jewellery. Brand recorded its highest ever quarterly sales of 150+ Cr. in Q3 as it continued to be the preferred brand amongst HNIs and celebrities.
Men’s premium ethnic wear brand TASVA witnessed strong interest during its first full festive season as the brand doubled its revenue over LY. Shantnu & Nikhil posted 30% growth YoY as its Pret label “S&N” grew 42% over LY led by 20% LTL growth. House of Masaba recorded 16% revenue growth over LY, as the brand added 2 new stores to exit Q3 with 14 stores.

o TCNS revenue in Q3 stood at 91% of LY as the business passes through a period of weak consumption environment.

• TMRW portfolio grew to 3.7 times of LY as it continued to invest in brand building initiatives, launching new categories within brands and making business model enhancements.

OUTLOOK
ABFRL delivered another quarter of resilient performance, underlining strong operating fundamentals despite a challenging environment. ABFRL will continue to manage business dynamically, ensuring long-term growth and sustainability. We remain committed to delivering exceptional consumer value and experience, strategically expanding our reach, executing with excellence, and competitively investing in our brands and capabilities. Having solidified our presence across multiple categories, segments, channels, and price points, ABFRL is well placed to leverage the
next wave of growth in the segment by unlocking its various growth platforms.