Shoppers Stop Limited · NSE:SHOPERSTOP
Shoppers Stop — Q3 FY23 Earnings Presentation
51 slides from Shoppers Stop's earnings presentation, Jan 24, 2023
Slide 1: Exchange cover letter: Press Release and Investor Presentation
SHOPPERS STOP SEC/93/2022-23 January 23, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (East), Mumbai 400 001. Mumbai 400 051. Stock Code : 532638 Stock Symbol : SHOPERSTOP Dear Sir / Madam, Sub.:
Slide 2: Upbeat customer sentiment drives highest ever quarterly sales and profits
Press Release for immediate distribution SHOPPERS STOP Upbeat customer Sentiment drives highest ever Quarterly Sales & Profits Shoppers Stop reports Revenue Rs 1430 Crs, up 20% YoY Non-GAAP EBITDA Rs 128 Cr up 27% YoY in Q3FY23 Reports highest ever PBT at Rs.91 Cr in Q3 FY23, up 44% YoY; PAT at Rs
Slide 3: Management Comments
Management Comments: Mr. Venu Nair, MD and CEO at Shoppers Stop, commented on the Q3FY23 results, "The growth momentum continued from the second quarter, tapering down a little after Diwali. Customer sentiments remain largely buoyant due to the prolonged festive and wedding season demand. The compan
Slide 4: Note and About Shoppers Stop Limited
Note: We have published a detailed Non-GAAP and GAAP Income Statement. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our financial statements prepared in accordance with GAAP. About Shoppe
Slide 5: Performance Highlights Q3 FY23
PERFORMANCE HIGHLIGHTS Q3 FY23 1 FRATINI 1
Slide 6: Consistent Performance
CONSISTENT PERFORMANCE 1. Continuously grown Sales, Margins and PBT in the last 8 quarters 2. Strategic Pillars have constantly outperformed with PB growing 23% from FY22 3. Operational KPI’s have steadily improved over the last 8 quarters 4. Cash surplus despite need based Working capital increase
Slide 7: Key Highlights, Expansion, Strategic Pillars, Financials
1 KEY HIGHLIGHTS 2 EXPANSION 3 STRATEGIC PILLARS 4 FINANCIALS LIFE 3
Slide 8: Market Outlook
MARKET OUTLOOK Customer Industry • Customers are investing in products • Festive season partially muted. Impact providing comfort and convenience higher for Tier II and III focused retailers • Need for integrating wellness features in • Delayed onset of Winter impacted products Demand • Hybrid Shopp
Slide 9: Q3 Highlights
Q3 HIGHLIGHTS BEST EVER QUARTERLY PERFORMANCE (Non GAAP) • Financials 1. Revenue +20% vs LY led by double digit Volume/ATV growth besides Private Brand 2. EBITDA +27% vs LY, margin expansion, better mix and one-off reversal 3. PBT + 44% vs LY due to sales led margin + one off reversal as per (2) abo
Slide 10: Q3 in Numbers
Q3 in Numbers (Non GAAP) Revenue Profitability Sales Rs 1430 Crs +20% Gross Margin Rs 474 Crs +21% (+20 Bps) Private Brand Rs 201 Crs +23% EBITDA Rs 128 Crs (FY22 Rs 100 Crs) Beauty Rs 232 Crs +18% PBT Rs 91 Crs (FY22 Rs 63 Crs) Balance Sheet Store Expansion and Renovation Net Surplus Rs 42 Crs New
Slide 11: YTD in Numbers
YTD in Numbers (Non GAAP) Revenue Profitability Sales Rs 3891 Crs +75% Gross Margin Rs 1291 Crs +83% (+140 Bps) Private Brand Rs 565 Crs +84% EBITDA Rs 270 Crs (FY22 Loss of Rs 13 Crs) Beauty Rs 626 Crs +69% PBT Rs 151 Crs (FY22 Loss of Rs 152 Crs) Balance Sheet Store Expansion and Renovation Net Su
Slide 12: Yearly Trend (Non GAAP)
(Rs in Crs) YEARLY TREND (NON GAAP) Achieved highest ever Quarterly Sales , EBITDA and PBT Sales Margin 33.1% 1500 1400 33.1% 32.9% 33.5% 1300 500 33.0% 1200 1100 32.5% 1000 900 400 32.0% 31.1% 800 700 1299 1430 1190 474 31.5% 600 500 400 885 300 430 392 31.0% 300 275 30.5% 200 100 J J J 1 J J J 0 '
Slide 13: Yearly Trend (GAAP)
YEARLY TREND (GAAP) (Rs in Crs) 600 43 .0% 1300 1200 Sales Margin 42.0% 1100 1000 500 42.6% 40.9% 41.0% 38.6% 900 40.6% 40.0% 800 400 1132 700 39.0% 600 994 951 462 500 400 708 300 424 387 38.0% 273 37.0% 300 200 200 36.0% I I I I I Q3FY20 Q3FY21 Q3FY22 Q3FY23 Q3FY20 Q3FY21 Q3FY22 Q3FY23 EBITDA PBT
Slide 14: Operational KPIs
OPERATIONAL KPIs (Offline and Online) Customer Visits (Mn) 5000 4900 ATV (Rs/-) 4800 4700 4600 45 00 4400 43 00 4200 l 4100 4000 3900 3800 3700 3600 3500 3400 3300 3200 3100 - 3000 2900 2800 2700 2600 4616 2500 2400 40.0 4191 2300 38.6 2200 36.6 3739 2100 3532 2000 1900 1800 30.1 1700 1600 1500 1400
Slide 15: Key Highlights, Expansion, Strategic Pillars, Financials
1 KEY HIGHLIGHTS 2 EXPANSION 3 STRATEGIC PILLARS 4 FINANCIALS 11 ALT LIFE11
Slide 16: Store Footprint
STORE FOOTPRINT 271 271 Stores [CELLRANGE [CELLRANGE 3.9M sq.ft. sq.ft.## ]] [CELLRANGE Store Footprint as on 31stst Dec22 [CELLRANGE ] ] [CELLRANGE [CELLRANGE [CELLRANGE [CELLRANGE ] [CELLRANGE ]] ] Format Format Store count ] [CELLRANGE [CELLRANGE [CELLRANGE ] [CELLRANGE [CELLRANGE ] [CELLRANGE] [
Slide 17: Investing for Growth
INVESTING FOR GROWTH STORE ADDITIONS ON TRACK FOR THE YEAR -"'.,;,.___~~~ . ~ . 'f;;. i -?.;~/: - '. V-:.r, . Department Stores Beauty Stores 5 14 4 15 5 6 ,6 3 Added Added Under Total! Added Added Under To,t all in HI inQ3 Fit-Out FY23 in H11 inQ3 Fit-Out FY23 Metro Tier I/II Tier III Total 3 9 2 1
Slide 18: New Store – Forum Kanakpura @ Bengaluru
New Store – Forum Kanakpura @ Bengaluru ---- - - d p 14 14
Slide 19: New Store – Marriot Newtown @ Kolkata
New Store –Marriot Newtown @ Kolkata 15
Slide 20: New Store – Phoenix @ Indore
New Store – Phoenix@Indore 15 16
Slide 21: New Store – Urban Square @ Udaipur
New Store – Urban Square @ Udaipur 16 17
Slide 22: New Store – City Centre @ Patna
New Store – City Centre @ Patna 18
Slide 23: New Store – Too Faced @ Select Saket, Delhi
New Store – Too Faced @ Select Saket, Delhi 1919
Slide 24: New Store – SSBeauty @ Select Saket, Delhi
New Store – SSBeauty @ Select Saket, Delhi 20
Slide 25: Renovated Bandra Store
Renovated Bandra Store 21 21
Slide 26: Renovated R City Ghatkopar, Mumbai
Renovated R City Ghatkopar, Mumbai 22
Slide 27: Key Highlights, Expansion, Strategic Pillars, Financials
1 KEY HIGHLIGHTS 2 EXPANSION 3 STRATEGIC PILLARS 4 FINANCIALS 23 HOME STOP 23
Slide 28: Strategic Pillars
STRATEGIC PILLARS Growth Vs FY22 I Additions in Q3 6 Dept 8.7M* +23% +18% 5 Beauty SALES FIRST CITIZEN PRIVATE BRANDS BEAUTY EXPANSION CONTRIBUTION 77% 14% 16% +39% +9% *Count reduction QoQ owing to data cleansing Growth Vs FY20 24
Slide 29: First Citizen
FIRST CITIZEN Sales contribution: • Offline 77%, New Member 12% • Online 38% • Active customer base at 28% Vs 22% in Mar 22 • Targeting Inactive members led to addition of 140K members, led to higher sales post festive season • Gamification for loyalty members gave 1.5x better response compared to r
Slide 30: First Citizen Black Customers
FIRST CITIZEN First Citizen Black Customers • Enrolment 18.3K new customers, all time high • ATV 2X of First Citizens • Members Spend 4x of First Citizens Exclusive engagement and experiences created for Black card members • Entertainment : Tickets to Broadway Musical Play “Mughal-E-Azam” • Sports &
Slide 31: Private Brands
PRIVATE BRANDS Sales Rs.201 Crs +23% • PB Contribution • Overall 14% • Apparels 20% Sales and Contribution % I 14.1% 13.7% 16.0% • “STOP” - No.1 Apparel brand 13.4% 14.0% • Product premiumization resulting ASP +23% 11.2% 12.0% • Men's Indian wear brand “Bandeya” grew +62% 10.0% • 201 8.0% Fashion Br
Slide 32: Beauty
BEAUTY Sales Rs.232 Crs. +18% • “Block Friday” and “Singles Day” campaign led to higher sales with endorsement from Malaika Arora • 112K makeovers led to strong customer engagement, generated sales of Rs 30 Crs Sales and Contribution % • Launched SSBeauty and Too Faced Store – In Select Saket, New 1
Slide 33: Distribution Vertical
DISTRIBUTION VERTICAL Foraying exclusive Distribution in Beauty Objective of Distribution in Beauty • Long term development of distribution brands in India, positioning these brands as expert in their categories, capitalizing on their history, strengths and expertise Why Distribution in Beauty? • Be
Slide 34: Exclusive distribution with L'Oréal, Clarins and Earthi
Global SS Beauty, subsidiary of Shoppers Stop foraying into Exclusive Distribution Business with L'Oréal, Clarins and Earthi VI KTOR ® ROLF Maison Margiela .....___~ PA R I S L’OREAL INTERNATIONAL DIVISION FRAGRANCE BRANDS AZZARO PARFUMS IQ RALPH LAUREN MUGLER I) VALENTINO SKIN CARE AND MAKEUP BRAND
Slide 35: Beauty Distribution Business – Brand Portfolio
BEAUTY DISTRIBUTION BUSINESS-BRAND PORTFOLIO L’OREAL INTERNATIONAL DIVISION FRAGRANCE BRANDS IQ ~ALENTINO AZZARO 31 31 PAR~l,MS
Slide 36: Beauty Distribution Business – Brand Portfolio
BEAUTY DISTRIBUTION BUSINESS-BRAND PORTFOLIO SKIN CARE AND MAKEUP BRAND CLARINS AYURVEDA BRAND eor Amla and Reetha eorth t . Hair Conditioner Hydr a t n Folltcle 32 32
Slide 37: Omni Channel
OMNI CHANNEL App Downloads 813K in Q3 (+15% Android downloads) 16.3M Cumulative • 38% contribution from First Citizens shopping Online • Average Order Value +7% Vs LY • Average time spent on platform has increased by 8% • Consistent growth in Exclusive Brands with ASP growth +27% • Highest ever Sale
Slide 38: Key Highlights, Expansion, Strategic Pillars, Financials
1 KEY HIGHLIGHTS 2 EXPANSION 3 STRATEGIC PILLARS 4 FINANCIALS STOP 34
Slide 39: KPI Performance – Q3
KPI PERFORMANCE – Q3 Vs FY22 (Rs Crs) 20% 20 bps 27% Sales Gross Margin EBITDA Non GAAP 1430 474 128 GAAP 1132 462 240 19% 20 bps 21% 35 STOP35
Slide 40: KPI Performance – YTD
KPI PERFORMANCE - YTD Vs FY22 75% 140 bps (Rs Crs) (Rs.13 Crs Loss in FY22) I I \ 3891 1291 270 Non GAAP Sales Gross Margin EBITDA 3082 1275 584 GAAP 73% 180 bps 72% LIFE 36
Slide 41: Financials Q3 FY23
FINANCIALS Q3 FY23 Particulars Non - GAAP Financials GAAP Financials Rs. in Crs. FY23 FY22 Gr% FY23 FY22 Gr% Gross Revenue 1430 1190 20% 1132 951 19% Other Income(1) 32 14 127% 24 15 67% Total Revenue 1462 1204 21% 1156 966 20% Margin 474 392 21% 462 387 20% Adjustment in Net Profit GAAP
Slide 42: Financials YTD FY23
FINANCIALS YTD FY23 Particulars Non - GAAP Financials GAAP Financials Rs. in Crs. FY23 FY22 Gr% FY23 FY22 Gr% Gross Revenue 3891 2221 75% 3082 1784 73% Other Income(1) 68 25 171% 34 146 -77% Total Revenue 3958 2246 76% 3116 1930 61% Margin 1291 706 83% 1275 705 81% Adjustment in Net Profit
Slide 43: Balance Sheet
BALANCE SHEET Particulars (Rs. In Crs.) Dec'22 Dec'21 Mar'22 Net worth 747 637 625 Loan Fund 109 194 194 Total Liabilities 856 831 819 Fixed Assets + Lease Deposit 769 724 732 Net Cash Rs. in Crs Investments 119 186 163 Inventory 1494 1021 1009 Cash & Investments 151 Other Assets 534 539 495 Loan 1
Slide 44: Cash Flow
CASH FLOW Particulars Dec'22 Dec'21 Mar’22 Cash Profit from Operations (after tax) 268 -12 -17 Changes in Working Capital -85 93 124 Cash generated from Operations 183 81 106 Fixed Assets /Reduction in Capex Creditors I -124 -66 -120 I Cash generated from Operations 59 15 -13 Redemption of Investme
Slide 45: Way Forward
Way Forward – Establish Shoppers Stop as a destination for experience and engagement across all channels – Maintain the momentum on sales – Focus on delivering consistent, profitable and responsible growth – Continue the transformation to an Omnichannel retailer – Invest and grow the new initiatives
Slide 46: Annexures
ANNEXURES
Slide 47: Financials Q3 FY23
FINANCIALS Q3 FY23 Particulars Non GAAP GAAP Rs. in Crs. FY23 FY22 Gr% FY23 FY22 Gr% Revenue 1430 1190 20% 1132 951 19% Other Income 32 14 127% 24 15 67% Total Revenue 1462 1204 21% 1156 966 20% Margin 474 392 21% 462 387 20% Margin% 33.1% 32.9% 20 Bps 40.9% 40.6% 20 Bps Operating Exp. 37
Slide 48: Financials YTD FY23
FINANCIALS YTD FY23 Particulars Non GAAP GAAP Rs. in Crs. FY23 FY22 Gr% FY23 FY22 Gr% Revenue 3891 2221 75% 3082 1784 73% Other Income 68 25 171% 34 146 -77% Total Revenue 3958 2246 76% 3116 1930 61% Margin 1291 706 83% 1275 705 81% Margin% 33.2% 31.8% 140 Bps 41.4% 39.5% 180 Bps Operating
Slide 49: Facts as at 31st Dec'22
271 (1) Stores 8.7M 800+ FIRST CITIZENS BRANDS 14% Mix 16% Mix PRIVATE BRANDS BEAUTY FACTS as at 31st Dec’22 3.9 M 50 SQUARE FEET CITIES AREA 39 Mn WALK-INS in Q3 (2) 17.9K 1. Includes 57 Shop in Shops 2. Including Brand staff TALENT POOL HOME STOP 45
Slide 50: Disclaimer
DISCLAIMER Certain statements in this release concerning our future growth prospects are forward-looking statements within the meaning of applicable securities laws and regulations, and which involve number of risks and uncertainties, beyond the Control of the company, that could cause actual result
Slide 51: Contact [email protected]
In case of any clarifications please contact on [email protected]