Aditya Birla Fashion & Retail Results: Latest Quarterly Results & Analysis

Department Stores company Aditya Birla Fashion and Retail announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

• Company continues to evolve in line with its stated long-term strategy
  • 18% YoY growth with revenue at Rs 3,407 crore for the quarter in a muted market marred by prolonged sluggish consumption in the discretionary space
  • On a full-year basis, consolidated revenue reaches Rs 13,996 crore for FY24, growing 13% YoY
• The established businesses continue to navigate market headwinds while maintaining a sharp focus on profitability enhancement
• New businesses, incubated & integrated over the past few years, continue to fuel the company's growth in line with its portfolio diversification strategy
  • Ethnic businesses grew to 2.7 times of LY in Q4
  • 51% YoY growth excluding TCNS
  • Reebok revenue up 29% YoY
  • TMRW’s portfolio grows to more than 2x of LY, both organically and inorganically
• Consolidated EBITDA for the quarter stood at Rs 377 crore., up 63% YoY
  • Led by focused cost control initiatives
  • EBITDA Margin at 11.1% vs 8% LY for Q4, 300 bps expansion
  • Company EBITDA for FY24 stood at Rs 1,703 crore., up 5% YoY
• Brands rationalized distribution to improve overall health of the network
  • Total network at 4,664 stores spanning 11.9 million sq.ft.
• Company recently announced de-merger of Madura business into a separately listed entity named Aditya Birla Lifestyle Brands Limited (ABLBL), with a clear strategy to enable the creation of two independent growth engines with distinct capital structures and parallel value creation opportunities and allow the participation of the right set of investors and strategic partners, aligned with the appropriate risk profiles of the two companies and their differentiated business models.
• Closed the quarter with net debt of Rs 2,862 crore in line with the guidance given at the start of the year
• The Board of Directors of the Company, at its meeting today, approved the results for the quarter ended 31 st Mar 2024. These financials are post factoring in necessary adjustments under Ind AS 116.

Result PDF

Department Stores company Aditya Birla Fashion and Retail announced Q3FY24 & 9MFY24 results:

Consolidated Q3FY24

• Revenue: Consolidated revenue for Q3FY24 was Rs 4,167 crore, showing a 16% increase from Rs 3,589 crore YoY.
• EBITDA: Consolidated EBITDA stood at Rs 605 crore, which is a 29% growth from Rs 467 crore in Q3FY23.
• Profit After Tax (PAT): The quarter saw a consolidated net loss of Rs 108 crore, compared to a PAT of Rs 11 crore previously.

Standalone Q3FY24

• Revenue: The company reported a revenue of Rs 3,516 crore for the quarter, marking an increase of 5% compared to the previous year's figure of Rs 3,359 crore.
• EBITDA: Standalone EBITDA rose to Rs 611 crore, a substantial growth of 28% from last year's Rs 478 crore.
• Profit After Tax: The standalone PAT faced a decline, reducing to Rs 45 crore from Rs 57 crore, a change of -21%.

Consolidated 9MFY24

• Revenue: For the year-to-date, consolidated revenue grew by 11%, reaching Rs 10,589 crore compared to Rs 9,538 crore for the same period last year.
• EBITDA: EBITDA decreased slightly by 4%, from Rs 1,385 crore to Rs 1,326 crore.
• Profit After Tax (PAT): There was a notable year-to-date net loss of Rs 470 crore, contrasting sharply with the previous year's gain of Rs 135 crore.

Standalone 9MFY24

• Revenue: The revenue stood at Rs 9,499 crore, reflecting a 5% growth from the previous year's Rs 9,086 crore.
• EBITDA: EBITDA was practically unchanged year-over-year, with Rs 1,460 crore relative to Rs 1,447 crore.
• Profit After Tax (PAT): There was a significant decrease in PAT, amounting to a loss of Rs 78 crore compared to a positive Rs 261 crore in the previous year.

Key Business Segment Highlights

• Lifestyle Brands: Registered a 10% revenue growth with Rs 1,815 crore and a notable EBITDA margin expansion of roughly 230 basis points, reaching 19.2% EBITDA.
• Pantaloons: Witnessed a 12% increase in revenue at Rs 1,297 crore and a 40% EBITDA growth.
• Ethnic Businesses: Excluding TCNS, the segment experienced a growth of 43%.
• Youth Western Wear: American Eagle saw a 34% increase in revenue, while Forever 21 faced market challenges.
• Reebok Performance: Continued strong performance with an over 100 crore sales mark and significant distribution expansion.
• Innerwear & Athleisure: Faced market softness along with a 5% growth in the Innerwear category.

Result PDF

Department Stores company Aditya Birla Fashion and Retail announced Q2FY24 & H1FY24 results:

• Q2FY24:
  • Consolidated:
    • Revenue: Rs 3,226 crore, with a 5% growth.
    • EBITDA: Rs 369 crore, a decrease of 12%.
    • EBITDA margin was 11.4%
    • PAT: Rs (200) crore.
  • Standalone:
    • Revenue: Rs 2,995 crore, showing a 1% growth.
    • EBITDA: Rs 426 crore, down by 8%.
    • EBITDA margin was 14.2%
    • PAT: Rs (75) crore.
• H1FY24:
  • Consolidated:
    • Revenue: Rs 6,423 crore, an 8% growth.
    • EBITDA: Rs 722 crore, showing a decrease of 21%.
    • PAT: Rs (362) crore.
  • Standalone:
    • Revenue: Rs 5,982 crore, a 4% growth.
    • EBITDA: Rs 849 crore, down by 12%.
    • PAT: Rs (124) crore.
• ABFRL’s store network has now grown to 4,050 , adding net 48 stores in this quarter
  • Lifestyle Brands added net 17 stores
  • Net addition of 5 stores for Pantaloons
  • Brands continued to actively expand while also focusing on improving the network health

Result PDF

Department Stores company Aditya Birla Fashion and Retail announced Q1FY24 results:

• Sales grew across brands and formats despite unfavorable market conditions.
  • 11% YoY growth with revenue at Rs 3,196 crore for Q1FY24.
  • Standalone revenue grew 8% YoY.
• Consolidated EBITDA for Q1FY24 stood at Rs 353 crore.
  • EBITDA margin was 11%.
• ABFRL’s store network is now 4000 large and continues to expand.
  • Branded business network added 28 stores on a net basis in Q1FY24.
    • Ethnic businesses added 12 stores to the network.
  • Pantaloons added net 3 stores to its network this quarter.
• 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

Result PDF

Department Stores company Aditya Birla Fashion Retail announced Q4FY23 &FY23 results:

• Company accelerates its growth momentum and continues to make significant progress viz a viz its long-term plan
  • 26% YoY growth with revenue at Rs 2,880 crore for the quarter
  • In FY23, revenue reaches Rs 12,418 crore for FY23, growing 53% YoY and 41% over pre-COVID
• Consolidated EBITDA for Q4FY23 stood at Rs 232 crore and the company achieved its yearly EBITDA of 1,617 crore
• Business growth continued to be led by aggressive offline expansion. The branded business network added 104 stores on a net basis in Q4FY23 where TASVA added 19 new stores to the network and Pantaloons added net 25 stores to its network this quarter.
• Company further strengthens its Digital and Omnichannel play
  • E-com sales in Q4FY23 grew 77% YoY driven by effective B2B partnerships and brand.com
  • Apart from integrating the acquired brands, TMRW continues to engage in business model advancements and drive value creation for these brands
• Company recently announced its largest strategic acquisition in line with its strategy to build a comprehensive ethnic wear portfolio
• Closed the quarter with net debt of Rs 1,422 crore primarily on account of continued investments in new growth ventures

Result PDF

Aditya Birla Fashion and Retail announced Q3FY23 results:

• Consolidated Q3FY23:
  • The company continued with its strong growth trajectory with the fifth consecutive quarter of double-digit growth over the pre-COVID period
    • 20% YoY growth with revenue at Rs 3,589 crore for the quarter
  • Consolidated quarterly EBITDA stood at Rs 467 crore
  • Aggressive network expansion continues
    • The branded business network gained 245 stores including newly integrated Reebok stores.
      • The ethnic business added 15 new stores
      • Network of small-town format within Lifestyle brands is now 550 stores strong
    • Pantaloons added 10 new stores to the network.
  • The company continues to execute its long-term strategy with play across emerging consumer spaces.
    • TMRW announced a strategic partnership with eight digital-first brands.
      • Six brands already been integrated into the portfolio.
    • Reebok transitioned into ABFRL w.e.f. October 01, 2022.
  • Digital and omnichannel strategies crucial for driving business growth.
    • E-commerce sales grew 33% YoY.
    • Omni-channel coverage is now across 2350 stores.

Result PDF

Aditya Birla Fashion and Retail announced Q2FY23 results:

• Continuing its strong growth momentum, the company achieved its highest quarterly revenues in Q2 FY23.
  • Revenue up 50% YoY at Rs. 3075 crore for Q2FY23
  • 33% growth over Pre-COVID levels
• Consolidated EBITDA for the quarter increased to Rs. 418 crore
  • Robust performance across business segments led to 24% YoY growth in EBITDA
• Aggressive network expansion across brands
  • Pantaloons added 21 stores on a net basis
  • Branded business posted net addition of 85 stores
• E-commerce sales grew 24% YoY across the portfolio
• Consistent enhancement of Omni-channel coverage across 1600 stores; one of the largest Omni-enabled fashion networks in the country.
• Closed the quarter with net debt of Rs. 243 crore at consolidated level against Rs. 504 crore at the end of Q4FY22.

Result PDF

Aditya Birla Fashion and Retail announced Q1FY23 Result :

• Aditya Birla Fashion and Retail posts highest ever Q1 sales with 39% revenue growth over pre-COVID levels.
• EBITDA grew 51% over the period to Rs. 500 Cr.
• Lifestyle brands – Revenues grew 51% over pre-COVID levels to Rs. 1519 Cr., while EBITDA grew 40% to Rs. 266 Cr., on the back of retail L2L growth of 29% over FY20 and aggressive expansion of retail stores. E-commerce business grew more than 50% YoY. Small town format and casual wear business continued to show strong growth.
• Pantaloons – Business achieved highest-ever Q1 revenues of Rs.1027 Cr, while EBITDA grew 33% over pre-COVID levels. The E-commerce channel grew by 70% YoY, with strong traction on own channel due to enhanced customer experience and engagement.

Result PDF

Aditya Birla Fashion and Retail announced Q4FY22 results:

• Q4 revenue grew 25% over pre-COVID levels as well as over the last fiscal
  • 50% YoY growth seen in March 2022 offsetting the impact of COVID 3 during the first half of Q4
• Q4 Consolidated EBITDA for the quarter increased 58% YoY to Rs 401 Crore.
  • Robust performance across categories led to a 17.6% EBIDTA margin this quarter
    • EBITDA Margin expanded by more than 350 bps over the previous year
• Closed the quarter with net debt of Rs 504 Crore

Result PDF