Spencer's Retail Limited has informed the Exchange about Investor Presentation
SRL:SEC:SE:2022-23/74
February 14, 2023
The Manager Listing Department, National Stock Exchange of India Limited (Symbol: SPENCERS) Exchange Plaza, 5th Floor Plot No. C/1, G-Block Bandra-Kurla Complex Bandra (East), Mumbai – 400 051 (Symbol : SPENCERS)
Dear Sir/Madam,
The General Manager Department of Corporate Service, BSE Limited (Scrip Code: 542337) Phiroze Jeejeebhoy Tower Dalal Street Mumbai – 400 001 (Scrip Code:542337)
Sub: Investor Updates / Press Release for the quarter ended December 31, 2022
Pursuant to Regulation 30 of SEBI (LODR) Regulation, 2015, Please find annexed herewith a copy of the Investor updates / press release dated February 14, 2023 for the quarter ended on December 31, 2022.
The above information is also available on the website of the Company at www.spencersretail.com.
Thanking you. For Spencer’s Retail Limited
Neelesh Bothra Chief Financial Officer
Encl: as above
Spencer's Retail Limited Regd. Office: Duncan House, 31, Netaji Subhas Road, Kolkata-700 001 Corp. Office: RPSG House, 2/4 Judges Court Road, Kolkata-700 027 Tel: +91 33 2487 1091 Web: www.spencersretail.com CIN: L74999WB2017PLC219355
Earnings Presentation – Q3 FY23
Feb-23
| RP-Sanjiv Goenka Group Presentation
1
Key Consolidated performance highlights
• Q3 FY23 business growth of 2.4% YoY and sustaining Gross margin % at 19.9% in Q3 FY23
driven by Business growth in both Food & Non-Food category mix (i.e. General
Merchandise & Apparel)
• Q3 Non-Food Mix surpassed Pre-Pandemic levels and has touched highest ever in last 3
years
• Our OMNI Channel Business turns PBT positive for the first time with a GMV of ₹77crore
in Q3. Improvement in EBITDA Margins from (-) 6% to 12.7% (Q3FY22 vs Q3FY23)
• Launch of 10 Spencer’s ‘Value Market’ format stores in existing geographies
Feb-23
| RP-Sanjiv Goenka Group Presentation
2
Consolidated Financial Parameters FY23
Quarter
Quarter
Feb-23
| RP-Sanjiv Goenka Group Presentation
3
Annualised Gross Sales per sqft
20.5%19.9%Gross Margin (%)Q2FY23Q3FY23649 639 Revenue from Operation (₹ Cr)Q2FY23Q3FY231.49 1.44 Trading Area (Mn Sq ft) Q2FY23Q3FY231680016900Gross Sales per Sq ft (₹) Q2FY23Q3FY23 Consolidated Financial Parameters FY23
9M
9M
Feb-23
| RP-Sanjiv Goenka Group Presentation
4
Annualised Gross Sales per sqft
1758 1909 Revenue from Operation (₹ Cr)FY22FY2320.9%20.3%Gross Margin (%)FY22FY231570017000Gross Sales per Sq ft (₹) FY22FY231.45 1.44 Trading Area (Mn Sq ft) FY22FY23 Spencer’s Business Highlights
Feb-23
| RP-Sanjiv Goenka Group Presentation
5
Launch of Value Market Format
Spencer’s Retail launches 10 of ‘Value Market’ format stores in existing geographies
Catering the needs of price conscious consumers in various cities
Feb-23
| RP-Sanjiv Goenka Group Presentation
6
Natures Basket Business Highlights
Feb-23
| RP-Sanjiv Goenka Group Presentation
7
Business Growth of 8.6% vs 9MFY22
Feb-23
| RP-Sanjiv Goenka Group Presentation
8
31-Dec-2230-Sep-2231-Dec-21Y-o-YQ-o-Q31-Dec-2231-Dec-21639 649 624 2.4%-2%Revenue from operations1,909 1,758 Expenses:512 516 493 Cost of Goods Sold1,521 1,390 127 133 131 -3%-4%Gross Margin388 367 19.9%20.5%21.1%-116 bps-58 bpsGross Margin %20.3%20.9%53 53 46 15%0%Employee expenses152 139 76 78 71 6%-3%Other expenses230 195 3 5 19 -83%-38%Other income27 54 2 7 32 EBITDA33 88 0.3%1.0%5.2%-491 bps-76 bpsEBITDA %1.7%5.0%34 33 34 Depreciation100 95 30 27 26 Finance costs82 72 (62) (54) (27) PBT(149) (79) -9.7%-8.3%-4.3%-537 bps-138 bpsPBT %-7.8%-4.5%(0.1) (0.1) (0.1) Tax Expenses(0.3) (0.4) (62) (54) (27) PAT(149) (79) (0.2) (0.3) (0.2) Other Comprehensive Income(0.7) (0.5) (62) (54) (27) Total Comprehensive Income(150) (79) 3 months endedGrowthConsolidated (₹ Cr) 9 months ended Business Growth of 11.5% vs 9MFY22
Feb-23
| RP-Sanjiv Goenka Group Presentation
9
31-Dec-2230-Sep-2231-Dec-21Y-o-YQ-o-Q31-Dec-2231-Dec-211 2 - New Stores added5 3 150 157 153 Total Store count150 153 0.18 0.12 - TA added (Lac sq.ft)0.62 0.40 13.29 13.86 13.42 TA exit (Lac sq.ft)13.29 13.42 563 581 544 4%-3%Revenue from operations1,699 1,523 457 469 436 5%-2%Cost of Goods Sold1,372 1,225 106 112 108 -2%-6%Gross Margin326 298 18.8%19.3%19.8%-102 bps-50 bpsGross Margin %19.2%19.6%44 44 37 18%-1%Employee expenses126 111 64 65 60 8%-1%Other expenses192 163 3 5 18 -84%-40%Other income26 47 1.0 8 29 EBITDA33 72 0.2%1.4%5.3%-513 bps-119 bpsEBITDA %2.0%4.7%26 24 25 Depreciation74 72 23 22 20 Finance costs65 56 (48) (37) (17) PBT(105) (56) -8.5%-6.4%-3.1%-532 bps-204 bpsPBT %-6.2%-3.7%- - - Tax Expenses- - (48) (37) (17) PAT(105) (56) (0.3) (0.3) (0.2) Other Comprehensive Income(0.8) (0.5) (48) (37) (17) Total Comprehensive Income(106) (57) 3 months endedGrowthSRL Standalone (₹ Cr) 9 months ended Natures Basket Standalone
Feb-23
| RP-Sanjiv Goenka Group Presentation
10
31-Dec-2230-Sep-2231-Dec-21Y-o-YQ-o-Q31-Dec-2231-Dec-2135 34 36 Total Store count35 36 1.08 1.05 1.08 TA exit (Lac sq.ft)1.08 1.08 76 69 80 -5%11%Revenue from operations212 235 55 48 57 -2%15%Cost of Goods Sold151 167 21 20 23 -10%3%Gross Margin61 68 27.4%29.7%29.2%-176 bps-226 bpsGross Margin %28.8%29.0%7 7 7 1%3%Employee expenses20 20 14 16 14 3%-10%Other expenses44 38 0 0 1 -65%-29%Other income1 7 0.1 (1.7) 4 EBITDA(2) 17 0.1%-2.5%4.7%-455 bps263 bpsEBITDA %-0.7%7.4%8 9 8 Depreciation26 23 6 5 5 Finance costs17 15 (14) (16) (9) PBT(44) (20) -18.5%-23.9%-11.5%-701 bps544 bpsPBT %-20.6%-8.5%- - - Tax Expenses- - (14) (16) (9) PAT(44) (20) 0.0 0.0 0.0 Other Comprehensive Income0.0 0.0 (14) (16) (9) Total Comprehensive Income(44) (20) 3 months endedGrowthNBL Standalone (₹ Cr) 9 months ended “ORIPL” Business turns PBT Profitable for the 1st time
Our E-commerce company turns PBT Positive at GMV ₹ 77crore for Quarter 3
228
30
9M FY20
9M FY22
Pre-Pandemic
GMV (₹ in Cr)
• •
ORIPL is an E-commerce company 100% owned Subsidiary of Spencer’s Retail Limited. OMNI Channel platform for Food, Grocery, Fresh, Apparel, General Merchandise and Liquor.
Feb-23
| RP-Sanjiv Goenka Group Presentation
11
31-Dec-2230-Sep-2231-Dec-21Y-o-YQ-o-Q31-Dec-2231-Dec-2177 78 64 1.2x1xGross Merchandise Value (GMV)228 256 5.3 5.4 4.3 23.4%-3.2%Revenue from operations15.7 17.3 Expenses:2.1 1.9 2.0 6%9%Employee expenses6.0 7.5 2.6 3.0 2.6 1%-14%Other expenses8.9 11.5 0.1 0.0 0.0 Other income0.1 0.3 0.7 0.5 (0.3) 350%-37%EBITDA0.9 (1.4) 12.7%9.0%-6%EBITDA %6%-8%0.3 0.3 0.2 8%-3%Depreciation0.8 0.7 0.3 0.4 0.2 Finance costs1.1 0.7 0.07 (0.2) (0.7) 110%145%PBT(0.9) (2.9) 1.3%-2.8%-16%PBT %-6%-17%- - - Tax Expenses- - 0.1 (0.2) (0.7) 110%145%PAT(0.9) (2.9) 0.0 (0.1) (0.0) Other Comprehensive Income(0.0) (0.0) 0.1 (0.2) (0.7) 117%153%Total Comprehensive Income(0.9) (2.9) ORIPL Standalone (₹ Cr) 9 months ended 3 months endedGrowth Thank You
About Spencer’s Retail Limited: Spencer’s Retail Limited, part of RP-Sanjiv Goenka Group, is a multi-format retailer providing a wide range of quality products across categories such as FMCG, fashion, food, staples, general merchandise, personal care, home essentials, electrical and electronics to its consumers. specialty sections such as Spencer’s Gourmet, Patisserie, Wine & Liquor and Epicuisine section are some of the key differentiators in our hypermarket stores and in Natures Basket Limited L’exclusif, healthy alternatives and Natures. The first ever hypermarket in India was launched by Spencer’s in Hyderabad in 2000. Today, Spencer’s (including Natures Basket) runs 185 stores with a total 14.37 Lacs Square Feet in over 43 cities in India. Spencer’s brand positioning – MAKES FINE LIVING affordable – embodies its philosophy of delighting shoppers with the best products and services that enable a fine living at reasonable prices, while providing them with a warm, friendly and educational retail environment. Value Market format is ‘maha bachat har din’ on your daily essentials household needs with best quality. Natures Basket Limited is a one shop destination for all multi cuisine cooking needs, healthy food including international food products. ORIPL is an E-commerce company 100% owned Subsidiary of Spencer’s Retail Limited. It is an OMNI Channel platform for Food, Grocery, Fresh, Apparel, General Merchandise and Liquor. Disclaimer: Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Spencer’s Retail Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
Feb-23
| RP-Sanjiv Goenka Group Presentation
12
Spencer’s Retail Limited
Q3 FY23 – Highlights: Business Growth of 2.4% YoY with highest ever Non-Food Mix in Last 3 years
Sustained OMNI Channel Growth
OMNI Channel Business is PBT profitable at GMV of ₹77crore 7.6x Growth vs Pre Pandemic FY1920
9M FY23 – Highlights: Business Growth of 8.6% YoY with sustained high Non-Food Mix
OMNI Channel Business is operationally profitable at GMV of ₹228crore,
7.6x Growth vs Pre Pandemic FY1920
Kolkata: Feb 14, 2023: Spencer’s Retail Ltd reported standalone turnover of ₹563 crore and Gross Margin of 18.8% for quarter ended Dec 31, 2022. Spencer’s operates with 150 Stores with a total trading area of 13.29 Lacs square feet as on Dec 31, 2022.
Natures Basket Ltd reported standalone turnover of ₹76 crore and Gross Margin of 27.4% for the quarter ended Dec 31, 2022. Natures Basket operates with 35 stores with a total trading area of 1.08 Lacs square feet as on Dec 31, 2022.
We have opened 1 Spencer’s store and 1 Natures Basket store having trading area of 18.5k sq.ft. & 3.3k sq.ft. respectively during the quarter.
5 Spencer’s stores and 1 Natures Basket store opened in period ended Dec 31, 2022 having trading area of 61.7k sq.ft and 3.3k sq.ft respectively.
Unaudited Consolidated Financial Results for the quarter ended Dec 31, 2022:
Revenue for the quarter ₹ 639 Cr & Gross Margin ₹ 127 Cr at 19.9% EBITDA ₹2 Cr PBT (-) ₹62 Cr OMNI Channel Company ‘ORIPL’ delivered first ever positive PBT of 1.3% at GMV ₹77cr
Unaudited Consolidated Financial Results for the period ended Dec 31, 2022:
Revenue for the period ₹ 1909 Cr & Gross Margin ₹ 388 Cr at 20.3% EBITDA ₹33 Cr PBT (-) ₹149 Cr OMNI Channel Company ‘ORIPL’ delivered positive EBITDA of 6% at GMV ₹228cr
Mr. Shashwat Goenka, Sector Head, said, “Our consolidated business has grown by 8.6% year-on- year basis led by significant growth in the Non-Food business and also from the Food business with sustained OMNI Channel presence.
Continuous investments in making our digital shopping experience seamless for our consumers have helped us to sustain the growth in the OMNI Channel business. ORIPL (Our OMNI Channel Business for home & online delivery) delivered the first-ever positive PBT at 1.3% for the Quarter that ended September with a GMV of ₹77 crore.
Mr. Goenka added, “Spencer’s retail has recently also ventured into a new format - ‘Spencer's Value Market.' There are currently 10 stores operational under this format. The initial consumer response has been very encouraging, which reinforces our confidence in the format."
About Spencer’s Retail Limited: Spencer’s Retail Limited (www.spencersretail.com | NSE: Spencers | BSE: 542337), part of RP-Sanjiv Goenka Group, is a multi-format retailer providing a wide range of quality products across categories such as FMCG, fashion, food, staples, general merchandise, personal care, home essentials, electrical and electronics to its consumers specialty sections such as Spencer’s Gourmet, Patisserie, Wine & Liquor and Epicuisine section are some of the key differentiators in our hypermarket stores and in Natures Basket Limited L’exclusif, Healthy alternatives and Natures. The first ever hypermarket in India was launched by Spencer’s in Hyderabad in 2000. Today, Spencer’s runs 185 stores (including Natures Basket) with a total 14.37 Lacs Square Feet in over 43 cities in India. Spencer’s brand positioning – Makes Fine Living affordable – embodies its philosophy of delighting shoppers with the best products and services that enable a fine living at reasonable prices, while providing them with a warm, friendly and educational retail environment. Value Market format is ‘maha bachat har din’ on your daily essentials household needs with best quality. Natures Basket Limited is a one shop destination for all multi cuisine cooking needs, healthy food including international food products. ORIPL is an E-commerce company 100% owned Subsidiary of Spencer’s Retail Limited. It is an OMNI Channel platform for Food, Grocery, Fresh, Apparel, General Merchandise and Liquor. Disclaimer: Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Spencer’s Retail Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.