ABFRL reports ₹5 crore profit for September quarter
2 min read 03 Nov 2021, 03:17 PM ISTBrands under the lifestyle segment continued with the execution of their small-town expansion strategy. For instance, Peter England Red added 36 stores in the first half go the financial year. Similarly, Allen Solly Prime added 18 stores
PremiumNEW DELHI: Aditya Birla Fashion and Retail Limited (ABFRL) on Wednesday reported a net profit of ₹5 crore for the three months ended 30 September compared to a net loss of ₹188 crore in the year-ago period, the company said.
On a consolidated basis, revenues doubled year-on-year ₹2,054 crore during the quarter under review.
The company reported 90% business recovery as shoppers returned to stores during the quarter and mobility restrictions eased.
Debt fell to to ₹873 crore by the end of the second quarter of the current fiscal from ₹1,200 crore in Q1 FY22.
"Despite aggressive growth plans across brands and channels, debt is expected to stay range bound at these levels for the year," the company said announcing earnings.
“The quarter began with gradual recovery from covid-19 2nd wave, with relaxed mobility restrictions and aggressive vaccination drive across the nation, sharply changing the consumer sentiment. This led to a strong recovery in store footfalls. Retail channel operations saw a rapid growth in demand as the national infection caseload came down," it said in its earnings statement.
Sale of apparel via e-commerce and omnichannel retail performed well. Over 30% of the company’s network of stores are now omni-enabled.
“The business has consistently shown strong like-to-like growth from the past four quarters, with brands evolving to meet the dynamic consumer needs. This period has also witnessed our brands foraying into innovative product categories to match the contextual market demands," the company said.
Within its various business segments, revenues from ifestyle brands including Allen Solly, Van Heusen, and Peter England, more than doubled year-on-year growing to ₹1,156 up from ₹531 crore in the year-ago period. The business reported a 92% recovery compared to pre-covid levels.
Brands under the Lifestyle segment continued with the execution of their small-town expansion strategy. For instance, Peter England Red added 36 stores in the first half go the financial year. Similarly, Allen Solly Prime added 18 stores. The business is bolstering its kids wear portfolio with the entry of Peter England into this segment.
The company's Pantaloons format reported slower recovery, largely due to a greater share of stores in malls that continued to face restrictions during the quarter. The retail chain recorded a recovery of 73% compared to pre-covid levels. Sales grew 80% year-on-year to ₹665 crore in the September quarter.
Other businesses, including active athleisure, innerwear, youth western fashion and super premium brands, including Simon Carter, Forever 21, American Eagle, Ralph Lauren, Hackett, have grown over pre-covid levels, aided by online channels.
ABFRL has a network of 3,264 stores across approximately 26,841 multi-brand outlets with over 7,094 points of sales in department stores and is set to “accelerate" its growth trajectory.
This will be driven by aggressive expansion in the product portfolio, entry into newer consumer segments and network expansion, both in existing and newer markets.
