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ABFRL posts 25% revenue growth in Q4, continues focus on small towns, ecomm & omnichannel

By Retail4Growth Bureau | May 19, 2022

Aditya Birla Fashion and Retail has announced that their consolidated EBITDA for the quarter ended 31 st March 2022 has increased 58% YoY to Rs. 401 crore and that the  ecommerce business is currently operating at annual revenue of Rs. 1000 crore, with one of the largest fashion omni-channel play and 50% of the network omni-enabled. 

The Board of Directors of Aditya Birla Fashion and Retail at their meeting on May 18, 2022, approved the results for the quarter ended 31 st March 2022. These financials are post factoring in necessary adjustments under Ind AS 116.

The retail company has announced that their Q4 revenue grew 25% over pre-COVID levels as well as over last fiscal and posted a 50% YoY growth seen in March 2022 offsetting the impact of COVID 3 during first half of Q4. Also, the  Q4 Consolidated EBITDA for the quarter increased 58% YoY to Rs. 401 crore.

Other highlights of the year as shared by the company include:

  • Robust performance across categories led to 17.6% EBIDTA margin this quarter
  • EBITDA Margin expanded by more than 350 bps over the previous year
  • Continued progress on strategic portfolio expansion agenda
  • Reebok and Masaba added to the portfolio this year
  • Strategic foray into D2C business with a long-term vision of building a portfolio of digital first brands
  • Network Expansion plan firmly on track
  • Continued expansion across markets and brands
  • Deepening penetration through small town formats
  • Accelerated E-com and Omni-channel play
  • Ecommerce business currently operating at annual revenue of ~Rs. 1000 Cr.
  • One of the largest fashion Omni-channel play with 50% network omni-enabled
  • Closed the quarter with net debt of Rs. 504 crore

The statement said, “A rapid revival in demand across categories led to a robust quarterly performance despite the impact of the third wave of the pandemic. The investments in ecommerce and omni-channel expansion have shown results with rising consumer affinity for our brands. “A rapid revival in demand across categories led to a robust quarterly performance despite the impact of the third wave of the pandemic. The investments in ecommerce and omni-channel expansion have shown results with rising consumer affinity for our brands.”

It added, “Each of the business segments posted a strong performance. Lifestyle brands’ revenues grew 34% YoY, while EBITDA grew 77%, on the back of revival of wholesale business and a strong retail LTL of 13%. Product  innovations and expansion into newer categories drove growth of our brand franchise. The business also continued its expansion into smaller town markets, building upon successful pilots carried out earlier this year.The onset of wave 3 had an effect in the early part of the 4th quarter. However, business witnessed strong rebound, with March 2022 sales growing by 50% over last year. We expect this momentum to continue in the coming quarters of this year as well.”

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