Aditya Birla Fashion and Retail Limited continues its stellar performance, EBITDA soars 62 per cent

02 November, 2018

Results (INR Cr.) Q2 FY 2018 Q2 FY2019 Growth H1 FY 2018 H1 FY 2019 Growth
Revenue 1,804 2,007 +11% 3,573 3,921 +10%
EBITDA 100 162 +62% 182 284 +56%
PAT (10) 43   (30) 48  

Q2 FY2019 financial performance

Aditya Birla Fashion and Retail Ltd. ("Company/ ABFRL"), India's first billion dollar pure-play fashion powerhouse, has reported a stellar performance for Q2 of FY 2018-19 ("FY 19"). EBITDA has soared by 62 per cent and revenue registered an 11 per cent rise (Ind AS and GST adjusted growth rate of 12 per cent).

On H1 basis, the EBITDA has zoomed 56 per cent and revenues have grown 10 per cent (Ind AS and GST adjusted growth rate of 12 per cent) compared to H1 of the FY 2017-18 ("FY 18").

For the reported quarter, the company's Profit After Tax (PAT) stood at Rs.43 crore vis-à-vis a loss of Rs.10 crore in the corresponding quarter of FY 18. This was on the wings of an overall improvement in all the business segments.

Business segment highlights

Madura

Madura's business segment consists of Lifestyle brands – Louis Philippe, Van Heusen, Allen Solly and Peter England, Fast Fashion – Forever 21 and People and other businesses.

Madura recorded a spectacular 52 per cent EBITDA growth at Rs.114 crore in Q2 - FY 19 as against Rs.75 crore in Q2 - FY 18. Revenues rose by 13 per cent to Rs.1,263 crore vis-à-vis, Rs.1,119 crore in the corresponding quarter of FY 18.

  • EBITDA for Lifestyle brands increased by 35 per cent from Rs.104 crore to Rs.140 crore in Q2 - FY 19 while revenues grew by 12 per cent from Rs.977 crore to Rs.1,090 crore over Q2 - FY 18.
  • Fast Fashion continues to operate cautiously which has led to EBITDA losses reducing by ~41 per cent from Rs.26 crore to Rs.15 crore in the first half of FY 19.
  • Other businesses continue the upward trend displaying 88 per cent growth in revenues over Q2 - FY 18 with EBITDA losses maintained at Rs.17 crore. Innerwear distribution network continues to expand aggressively with approximately 9,500 outlets across the country. The business also had a successful launch of women's innerwear and Polo Ralph Lauren.

Pantaloons

Pantaloons continues its growth trajectory despite the festive season moving to Q3 - FY 19.

  • Attained a remarkable growth in EBITDA of 47 per cent from Rs.35 crore to Rs.52 crore in Q2 - FY 19; 61 per cent growth on a half yearly basis from Rs.81 crore to Rs.130 crore in H1 - FY 19
  • Revenues grew by 6 per cent over Q2 - FY 18 reaching Rs.787 crore (Ind AS adjusted growth rate of 8 per cent).

Outlook

  • The Lifestyle brands will continue its growth momentum on the back of product innovations, category extensions and impactful marketing campaigns.
  • Pantaloons' growth will be accelerated with its continued focus on product improvement, brand investments and expansion into newer territories
  • Fast Fashion segment will reignite growth post its business model adjustment.
  • Innerwear is expected to build on the strong growth momentum, driven by both men's and women's offerings.
  • The International Brands are all set to expand distribution to build upon the existing brand portfolio.

ABFRL's outlook for the future is bright. ABFRL has a spread of 2,576 brand stores, approximately 14,000 multi-brand outlets (including 9,500+ trade outlets in Innerwear) and 4,100+ points of sale in department stores across the country.

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 the Company, its future outlook & growth prospects, future developments in its businesses, its competitive & regulatory environment and management's current views & assumptions which may not remain constant due to risks and uncertainties. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility to publicly amend, modify or revise any statement, on the basis of any subsequent development, information or events, or otherwise. This "Press Release" does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire any shares and should not be 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 rupees one crore. The financial results are consolidated financials unless otherwise specified.

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