Aditya Birla Fashion and Retail on November 9 reported a consolidated net loss of Rs 200.34 crore for the September quarter of FY24 compared to a net profit of Rs 29,42 crore in the year-ago period.
Total revenue of the company came in at Rs 3,226.44 crore, rising 4.93 percent from Rs 3,074.61 crore in the year-ago quarter, the company said in a regulatory filing.
One of the company's subsidiaries, Aditya Birla Digital Fashion Ventures, was recently engaged in a shareholder agreement and a share subscription agreement to acquire a 51 percent ownership interest in Styleverse Lifestyle for a total of Rs 155 crore. ABFRL has also successfully acquired TCNS Clothing Co. Ltd., making it a 51 percent subsidiary of ABFRL.
Earnings before interest, tax, depreciation and amortization (EBIDTA) for the quarter was at Rs 426 crore declining by 8 percent. EBIDTA margin was at 14.2 percent compared to 15.7 percent.
Ms. Shobha Ratna Tanniru has been appointed as the Chief Human Resources Officer (Designate) of Aditya Birla Fashion and Retail Limited, a senior management position within the company. Her appointment will take effect from December 15, 2023, and she will officially assume the role of Chief Human Resources Officer on February 16, 2024. Shobha is transitioning from her previous role at Aditya Birla Sun Life Insurance, where she served as Head of HR & Training and Chief Operations Officer.
Meanwhile, Mr. Chandrashekhar Chavan, the current Chief Human Resources Officer and a senior management member of the company, will be transitioning to a new role within the Aditya Birla Group. He will remain in his current position and with the company until February 15, 2024.
The company is continuing to enhance our presence in emerging markets while also improving the overall performance and stability of our distribution network. In the past quarter, the company successfully opened 48 more stores, accounting for net additions.
In the realm of Lifestyle brands, sales amounted to Rs. 1,586 crore, with the business's EBITDA seeing an 18 percent growth from the previous year, reaching Rs. 339 crore. This was primarily due to improvements in gross margins, leading to an EBITDA margin expansion of 430 basis points, now standing at 21.3 percent. The brands within this category continued to adapt to evolving consumer trends by introducing new products. Notable additions included a new sneaker range from Louis Philippe and the cricket inspired 'The Gentlemen's League' range from Peter England in Q2. The brands also focused on enhancing visibility through various campaigns, especially during the ongoing cricket World Cup.
Pantaloons, however, faced a 7 percent decline in sales, primarily attributed to sluggish discretionary demand in the value/masstige fashion space. Non-Pujo markets displayed year-on-year growth, while Eastern markets experienced a double-digit decline due to a shift in Pujo timing. The private label portfolio continued to perform well, holding a 64 percent share in Q2. Pantaloons' network expanded to 439 stores, covering 5.9 million square feet of retail space.
The Youth Western wear segment featured American Eagle and Forever 21, with American Eagle achieving a remarkable 37 percent year-on-year revenue growth due to robust distribution expansion. Meanwhile, Forever 21 concentrated on optimizing its network, emphasizing operational efficiency and E-commerce expansion. Reebok's resurgence in this quarter was evident with a 77 percent sales growth driven by distribution expansion, product additions, and channel expansion.
The Innerwear & athleisure segment strengthened its presence through media channel campaigns and introduced a celebrity campaign starring Indian cricketer Hardik Pandya. In the super premium brands category, The Collective and others performed well, posting a revenue growth of 26 percent year-on-year and an 11 percent retail like-to-like growth. The ethnic business expanded by approximately 32 percent year-on-year in this quarter, with brands like Sabyasachi, TASVA, Shantnu & Nikhil, and House of Masaba experiencing significant growth. Lastly, TMRW brands benefited from operational improvements and expanded its portfolio with the addition of The India Garage Company (TIGC) specializing in the men's casual segment.
Outlook
Despite ongoing challenges in the market, including reduced discretionary spending and a sluggish rural recovery impacting lower-priced and mid-priced segments, ABFRL has continued to persevere. The company remains dedicated to its long-term strategic vision. It is achieving this by intensifying its commitment to innovation through new product introductions, improving customer interactions and experiences, expanding its presence in various channels and markets, and streamlining operational processes. These efforts are setting the foundation for future growth and resilience. The company's unwavering focus on these strategic principles will position it for a robust comeback as market conditions improve.
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