HomeBUSINESSABFRL reports June quarter net profit of ₹94 crore

ABFRL reports June quarter net profit of ₹94 crore


NEW DELHI: Aditya Birla Fashion and Retail Ltd., (ABFRL) on Friday reported a net profit of 94.44 crore for the three months ended June, the company informed the stock exchanges. The company that operates retail brands such as Louis Philippe, Van Heusen and Allen Solly had posted a loss of 352.15 crore in the year-ago period.

For the June quarter, consolidated revenue from operations stood at 2,874.76 crore, up 254% from 811.95 crore reported a year ago albeit on a base of a pandemic-hit quarter. EBITDA margins expanded 130 basis points over pre-covid levels to reach 17.4% in Q1 FY23, the company said.

“A sharp recovery in demand across categories and strong preference for our portfolio of brands led to a robust quarterly performance. Aggressive store expansion, accelerated e-commerce and omni-channel play have been key drivers of growth in the quarter,” the company said in a statement.

The company benefitted from strong demand for formal wear as many companies called back employees to work from office.

Meanwhile, the company’s lifestyle brands–Peter England, Van Heusen, Allen Solly, among others–reported a 250% year-on-year jump in revenue to 1,519 crore, while EBITDA grew 40% to 266 crore.

ABFRL continued its “aggressive” expansion of retail stores of the lifestyle portfolio. E-commerce business for the portfolio grew more than 50% year-on-year. Small town format and casual wear business continued to show strong growth. As of Q1FY23, the lifestyle business had a network of 2,527 stores.

The company had a network of 3,487 stores across approximately 30,787 multi-brand outlets with 6,381 point of sales in department stores across India as on 30 June 2022.

Retail store chain Pantaloons reported revenue of 1,027 crore, while EBITDA grew 33% over pre-covid levels. The e-commerce channel grew 70% year-on-year, with strong traction on own channel due to enhanced customer experience and engagement.

The company expects consumer momentum to continue well into the festival season.

“Improved consumer confidence, value migration to the organised sector, and robust omni-channel presence led to strong growth and improved profitability. We expect this momentum to continue in upcoming quarters, with a further boost during the festive season,” the company commenting on future outlook.

ABFRL’s inner wear and athleisure segment achieved highest-ever quarterly revenue driven by network expansion and strong e-commerce growth. Business continued to expand trade network with addition of 2,000 new trade outlets to exit the quarter with 29,000 outlets. ABFRL’s youth fashion brand American Eagle sales is now almost three times that of pre-covid levels.

The company’s ethnic businesses also showed sharp growth as revenue was 2.7 times of Q1 FY22, with scale coming from both network expansion and category extensions. Tasva added six new stores to the network to exit the quarter with 12 stores. For Sabyasachi, revenue grew 160% over pre-covid levels.

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