New Delhi: Aditya Birla Fashion & Retail Limited, (ABFRL) on Friday reported a net profit of Rs. 94.44 crore for the three months ended June, the company informed the stock exchanges. The company that operated retail brands such as Louis Philippe, Van Heusen and Allen Solly reported a loss of 352.15 crore in the year-ago period.
For the June quarter, consolidated revenue from operations was 2,874.76 crore, up 254%. From 811.95 crore was reported a year ago on a pandemic-affected quarter basis. The company said EBITDA margin expanded 130 basis points over pre-covid levels to reach 17.4% in Q1 FY23.
“The sharp improvement in demand across categories and strong preference for our portfolio of brands led to a strong 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 benefited from strong demand for formal wear as many companies called back employees to work from the office.
Meanwhile, the company’s lifestyle brands – Peter England, Van Heusen, Alan Solly, among others – posted a 250% year-on-year jump in revenue. 1,519 crore, while EBITDA increased by 40% 266 crores.
ABFRL continued its “aggressive” expansion of the lifestyle portfolio’s retail stores. The e-commerce business for the portfolio grew more than 50% year-over-year. Strong growth continued in the small-town format and casual wear business. As of Q1FY23, the lifestyle business had a network of 2,527 stores.
The company had a network of 3,487 stores in about 30,787 multi-brand outlets with 6,381 points of sale in department stores across India as of 30 June 2022.
Retail store chain Pantaloons reported revenue of 1,027 crore, while EBITDA grew 33% over pre-Covid levels. With strong traction on its channel due to better customer experience and engagement, the e-commerce channel grew 70% year-on-year.
The company expects the consumer momentum to remain good during the festive season.
“Improved consumer confidence, value migration into the organized sector, and a strong omni-channel presence led to strong growth and improved profitability. We expect this momentum to continue further during the festive season in the coming quarters.”
ABFRL’s Inner Wear and Athleisure segment posted highest ever quarterly revenues driven by network expansion and strong e-commerce growth. The business network continued to expand with 2,000 new business outlets to exit the quarter with 29,000 outlets. ABFRL’s youth fashion brand American Eagle’s sales are now almost three times as compared to pre-Covid levels.
The company’s ethnic businesses also showed sharp growth as revenue stood at 2.7 times the first quarter of FY12, coming from both network expansion and category expansion. Taswa added six new stores along with 12 stores to exit the quarter. For Sabyasachi, revenue grew 160% over pre-Covid levels.
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