Aditya Birla Fashion and Retail posts highest ever Quarterly Revenues with 50% growth YoY

Performance Highlights

1. Continuing its strong growth momentum, the company achieved its highest quarterly revenues in Q2 FY23.
a. Revenue up 50% YoY at Rs.3075 Cr. for the quarter
b. 33% growth over Pre-COVID levels

2. Consolidated EBITDA for the quarter increased to Rs. 418 Cr.
a. Robust performance across business segments led to 24% YoY growth in EBITDA

3. Aggressive network expansion across brands
a. Pantaloons added 21 stores on a net basis
b. Branded business posted net addition of 85 stores

4. Successful execution of our portfolio expansion strategy
a. Reebok transaction completed, brand to be part of ABFRL portfolio from 01st October 2022
b. House of Masaba launched its beauty and personal care line, "Lovechild", targeting a wide range of products
c. Kid's wear business launched by Van Heusen Innerwear

5. Digital and omnichannel continue to build as prominent drivers of growth
a. E-commerce sales grew 24% YoY across the portfolio
b. Consistent enhancement of Omni-channel coverage across 1600+ stores; one of the largest Omni-enabled fashion networks in the country.

6. Closed the quarter with net debt of Rs.243 Cr. at consolidated level against Rs.504 Cr. at the end of March' FY22.

Financial Performance

The Board of Directors of the Company, at its meeting today, approved the results for the quarter ended 30th Sept 2022. These financials are post factoring in necessary adjustments under Ind AS 116.

Financials – Q2

Financials – H1

Robust Like-to-Like and consistent E-commerce performance have been key drivers of growth in the quarter. The period also saw an increase in marketing investments post a hiatus of more than 2 years since COVID, as the company reinvigorated its focus towards brand building and strengthening consumer connect.

Each of the business segments posted strong performance.

• Lifestyle brands – Best quarter for the branded portfolio as revenue grew 45% YoY (34% over pre-COVID levels) to reach Rs.1680 Cr on the back of industry-leading retail L2L growth of 27%. EBITDA surged 52% YoY to Rs.286 Cr. The quarter also marked solid traction for the Women's and kid's wear business portfolio as it achieved the highest-ever quarterly revenue. The business continued with its focus towards building the growth engine of small-town stores, with a network of ~550 stores across brands.
• Pantaloons – Business achieved highest-ever quarterly revenues to grow 64% YoY to Rs.1094 Cr. E-commerce grew 20% YoY on the back of robust festive sales on the app and the website. EBITDA margins were ahead of pre-COVID levels, mainly led by sharp markdown reductions and better value realisations. Pantaloons celebrated its 25th anniversary with its customers through several campaigns across the country.
• Inner wear & athleisure segment achieved 27% revenue growth YoY. The business continued to expand its network by adding ~1400 new trade outlets and 31 retail outlets to exit the quarter with ~30400 trade outlets and 111 stores.
• Youth Fashion segment consisting of American Eagle and Forever 21, continued to show robust growth of over 50% YoY.
• Super premium brands, comprising of the multi-brand format "The Collective" and other super-premium brands, continued the strong momentum with revenue growing 35% YoY. E-commerce revenue witnessed 100% growth over the same quarter last year.
• Ethnic businesses grew ~ 90% YoY (9x over pre-COVID), driven by both network expansion and category extensions. The brand "Sabyasachi" opened its first-ever exclusive brand store in New York. Men's premium ethnic wear brand Tasva continued its aggressive expansion targeting to end this year with ~70 stores.

OUTLOOK

Driven by a buoyant demand outlook and an encouraging start to the festive season, ABFRL remains optimistic about the overall consumption of fashion products for the rest of the year. Accelerated urbanization, sustained income growth and the need for a sophisticated shopping experience augur well for ABFRL's portfolio of brands. Through millions of loyal customers, a proven execution track record, the strength of its brands and a comprehensive portfolio play, ABFRL continues to see strong growth opportunities ahead. With a strong balance sheet, ABFRL is well poised to make the most of this opportunity as it cements its leadership position in the Industry.

About Aditya Birla Fashion and Retail Limited

ABFRL is part of a leading Indian conglomerate, The Aditya Birla Group. With revenue of Rs.8,136 Cr. spanning retail space of 9.2 million sq. ft. (as on March 31, 2022), 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 3,593 stores across approximately 31,734 multi-brand outlets with 6,491 point of sales in department stores across India (as on 30th September 2022).

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, India's largest multi-brand retailer 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 and Reebok.

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 also 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.

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, based on 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 Rs. one Crore. The financial results are consolidated financials unless otherwise specified.