Aditya Birla Fashion and Retail Q1 results: Net loss of Rs 161.62 crore from year-ago profit

ABFRL Q1FY24 results.

Aditya Birla Fashion and Retail on August 4 reported consolidated net loss of Rs 161.62 crore for the June quarter of FY24. This is in contrast with profit of Rs 94.44 crore in the same quarter of the previous financial year.

Total revenue of the company is Rs 3,196.06 crore, rising 11 percent from Rs 2,874.76 crore in the year-ago quarter, the company said in a regulatory filing.

Earnings before interest, tax, depreciation and amortization (EBIDTA) for the quarter was at Rs 292.3 crore declining by 37.6 percent YOY. The EBIDTA margin was 9.1 percent versus 16.3 percent YOY.

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The company anticipates a rebound in discretionary spend with the onset of the festive season, propelling the company’s growth trajectory further in the second half, the company said in a press release.

The company's branded business network added 28 stores on a net basis in Q1. while the ethnic businesses added 12 stores to the network. Pantaloons added net 3 stores to its network this quarter.

The company's  E-com sales grew 12 percent YoY with strengthened omnichannel play.

The company's sales for Lifestyle brands grew 5 percent YoY to reach Rs 1594 crore, while EBITDA for the business expanded by 10 percent over the last year to hit Rs 292 crore. The women’s wear business maintained strong growth, with a 9 percent YoY increase.

The Pantaloons business demonstrated a resilient performance in Q1,
recording sales of Rs 1030 crore and an EBITDA margin of 13.4 percent, despite a subdued demand environment across various markets.

Youth Western wear segment consists of American Eagle and Forever 21.
In Q1, American Eagle achieved a 49 percent YoY revenue growth, expanding its availability to 40 exclusive stores and over 65+ department stores. Meanwhile, Forever 21 continues to prioritise operational efficiency and network rationalisation.

Reebok sales grew 43 percent over last year. The brand opened 10 new stores in Q1 and also continued to broaden its department store collaborations and marketplace partnerships.

Ethnic businesses grew around 33 percent YoY this quarter, driven by network expansion and brand development initiatives.

Following the earnings, share price of Aditya Birla Fashion and Retail fell 2.94 percent to Rs 214.45 as of 3 pm on NSE.