Spencer's Retail Limited has informed the Exchange about Investor Presentation
SRL:SEC:SE:2023-24/62
November 8, 2023
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,
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 September 30, 2023
Pursuant to Regulation 30 of SEBI (LODR) Regulation, 2015, please find annexed herewith a copy of the Investor updates / press release dated November 8, 2023 for the quarter ended on September 30, 2023.
The above information is also available on the website of the Company at www.spencersretail.com.
Thanking you.
Yours faithfully, For Spencer’s Retail Limited
Vikash Kumar Agarwal Company Secretary & Compliance 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
Spencer’s Retail Limited
Q2 FY24 – Highlights: Flat business performance with improvement in Gross Margins % by 65bps
Closed 22 High loss making stores, will have positive impact on profitability
Launch of the Express Delivery proposition in Kolkata
Opened 2 Stores with a combined Trading Area of 17k sq.ft.
Kolkata: Nov 8, 2023: Spencer’s Retail Ltd reported standalone turnover of ₹499 crore and Gross Margin of 19.9% for quarter ended Sep 30, 2023. Spencer’s operates with 135 Stores with a total trading area of 12.56 Lacs square feet as on Sep 30, 2023.
Natures Basket Ltd reported standalone turnover of ₹74 crore and Gross Margin of 29.1% for the quarter ended Sep 30, 2023. Natures Basket operates with 32 stores with a total trading area of 0.98 Lacs square feet as on Sep 30, 2023.
Unaudited Consolidated Financial Results for the quarter ended Sep 30, 2023:
Revenue for the quarter ₹ 574 Cr & Gross Margin ₹ 121 Cr at 21.1% EBITDA (-) ₹4 Cr PBT (-) ₹70 Cr OMNI Channel Company ‘ORIPL’ delivered positive EBITDA of 0.8% at GMV ₹76cr
Unaudited Consolidated Financial Results for the period ended Sep 30, 2023:
Revenue for the period ₹ 1144 Cr & Gross Margin ₹ 112 Cr at 20.4% EBITDA ₹4 Cr PBT (-) ₹134 Cr OMNI Channel Company ‘ORIPL’ delivered positive EBITDA of 3% at GMV ₹137cr
Mr. Shashwat Goenka, Chairman, said, “Our Business growth was muted for the quarter as we took some hard decisions on improving profitability through closure of loss making stores in non-strategic geographies in South India. We have witnessed an improvement of 65bps in the gross margins despite a hyper competitive operating environment and stay committed to driving both top line and profitability in the balance part of the Fiscal.
Natures Basket on Standalone basis, has delivered 8% growth and improvement in Gross Margin % by 241bps on QoQ basis. Our gifting business ‘The Gift Studio’ has been constantly delivering high growth across all the channels whilst delivering healthy margin.
Mr. Goenka added, “Our ‘Out-of-Store’ business has delivered a positive EBITDA for the quarter at GMV of ₹76 crore with a sustainable business mix of ~13%. In the latter half of the quarter we launched our ‘Express Delivery’ proposition in Kolkata city (1hour delivery from a choice of over 50,000+ sku’s). The initial response has been encouraging and we continue to scale this whilst maintaining positive unit economics.”
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 167 stores (including Natures Basket) with a total 13.54 Lacs Square Feet in over 41 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.
Earnings Presentation
Q2 FY24
Nov-23
| RP-Sanjiv Goenka Group Presentation
1
Key Consolidated performance highlights
• QoQ growth of 1% with a Gross margin % improvement on YoY and QoQ basis by 65bps and 154bps
respectively
• Natures Basket has delivered 8% growth and improvement in Gross Margin % by 241bps on QoQ
basis
• Closed 22 high loss making stores at non-strategic locations which will have positive impact on
profitability
• We launched the Express delivery proposition (1 hour delivery from a range of 50K+ products) for
our Online Business in Kolkata.
• Our OMNI Channel Business sustaining positive EBITDA at a GMV of ₹76crore for Q2FY24.
• Added 2 Stores during the quarter having Trading Area of 16.8k sq.ft. in Spencer’s in existing
geographies
• Our Gifting vertical, ‘The Gift Studio’ has seen a good traction both on H1 & Q2 having growth of
48% and 40% respectively
• Reduction in Store Controllable cost on YoY basis for Q2 and H1
Nov-23
| RP-Sanjiv Goenka Group Presentation
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Consolidated Financial Parameters FY24
Quarter
Quarter
Nov-23
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Gross Sales per sqft calculated on Annualised Basis
570 574 Revenue from Operation (₹ Cr)Q1FY24Q2FY2419.6%21.1%Gross Margin (%)Q1FY24Q2FY241550016700Gross Sales per Sq ft (₹) Q1FY24Q2FY241.43 1.35 Trading Area (Mn Sq ft) Q1FY24Q2FY24 Consolidated Financial Parameters FY24
H1
H1
Nov-23
| RP-Sanjiv Goenka Group Presentation
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Gross Sales per sqft calculated on Annualised Basis
1,270 1,144 Revenue from Operations (₹ Cr)FY23FY2420.6%20.4%Gross Margin (%)FY23FY241.49 1.35 Trading Area (Mn Sq ft) FY23FY241690015600Gross Sales per Sq ft (₹) FY23FY24 Spencers Highlights
Nov-23
| RP-Sanjiv Goenka Group Presentation
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Natures Basket Highlights
Nov-23
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Standalone Business
Nov-23
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30-Sep-2330-Jun-2330-Sep-22Y-o-YQ-o-Q30-Sep-2330-Sep-222 1 2 New Stores added2 2 135 152 157 Total Store count135 157 0.17 0.03 0.12 TA added (Lac sq.ft)0.17 0.12 12.56 13.29 13.86 TA exit (Lac sq.ft)12.56 13.86 499 503 581 -14%-1%Revenue from operations1,002 1,135 400 409 469 -15%-2%Cost of Goods Sold809 915 99 94 112 -11%6%Gross Margin193 220 19.9%18.6%19.3%60 bps131 bpsGross Margin %19.2%19.4%42 38 44 -6%10%Employee expenses80 83 65 61 65 1%6%Other expenses127 128 3 7 5 -43%-58%Other income9 23 (5.0) 1 8 EBITDA(4) 32 -1.0%0.2%1.4%-236 bps-115 bpsEBITDA %-0.4%2.8%23 26 24 Depreciation49 48 29 26 22 Finance costs55 42 (57) (52) (37) PBT(108) (57) -11.3%-10.3%-6.4%-492 bps-105 bpsPBT %-10.8%-5.1%- - - Tax Expenses- - (57) (52) (37) PAT(108) (57) (0.5) (0.5) (0.3) Other Comprehensive Income(1.0) (0.5) (57) (52) (37) Total Comprehensive Income(109) (58) 3 months endedGrowthSRL Standalone (₹ Cr) 6 months ended Business Growth of 11% vs Q1FY24
Nov-23
| RP-Sanjiv Goenka Group Presentation
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30-Sep-2330-Jun-2330-Sep-22Y-o-YQ-o-Q30-Sep-2330-Sep-2232 34 34 Total Store count32 34 0.98 1.03 1.05 TA exit (Lac sq.ft)0.98 1.05 74 67 69 8%11%Revenue from operations142 136 53 49 48 9%7%Cost of Goods Sold102 96 22 18 20 6%21%Gross Margin40 40 29.1%26.6%29.7%-63 bps241 bpsGross Margin %27.9%29.5%8 6 7 13%19%Employee expenses14 13 13 11 16 -18%22%Other expenses24 30 0 5 0 -19%-92%Other income6 1 1.3 6.1 (2) EBITDA7 (2) 1.7%9.1%-2.5%426 bps-737 bpsEBITDA %5.2%-1.2%8 12 9 Depreciation19 18 6 7 5 Finance costs13 10 (13) (12) (16) PBT(25) (30) -17.3%-18.3%-23.9%662 bps99 bpsPBT %-17.8%-21.9%- - - Tax Expenses- - (13) (12) (16) PAT(25) (30) 0.0 0.0 0.0 Other Comprehensive Income0.0 0.0 (13) (12) (16) Total Comprehensive Income(25) (30) 3 months endedGrowthNBL Standalone (₹ Cr) 6 months ended ORIPL Standalone
• •
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.
Nov-23
| RP-Sanjiv Goenka Group Presentation
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30-Sep-2330-Jun-2330-Sep-22Y-o-YQ-o-Q30-Sep-2330-Sep-2276 62 78 1x1.2xGross Merchandise Value (GMV)137 151 5.2 5.3 5.4 -3.9%-0.8%Revenue from operations10.5 10.5 Expenses:2.2 2.4 1.9 17%-8%Employee expenses4.7 3.9 2.9 2.6 3.0 -3%13%Other expenses5.5 6.3 0.0 0.0 0.0 Other income0.0 0.0 0.0 0.2 0.5 91%-81%EBITDA0.3 0.3 0.8%4.2%9%EBITDA %3%3%0.3 0.3 0.3 0%1%Depreciation0.5 0.5 0.3 0.3 0.4 Finance costs0.7 0.7 (0.5) (0.4) (0.2) -251%-43%PBT(0.9) (0.9) -10.3%-7.1%-3%PBT %-9%-9%- - - Tax Expenses- - (0.5) (0.4) (0.2) -251%-43%PAT(0.9) (0.9) (0.0) (0.0) (0.1) Other Comprehensive Income(0.0) (0.1) (0.5) (0.4) (0.2) -158%-42%Total Comprehensive Income(0.9) (1.0) ORIPL Standalone (₹ Cr) 6 months ended 3 months endedGrowth Consolidated Business
Nov-23
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30-Sep-2330-Jun-2330-Sep-22Y-o-YQ-o-Q30-Sep-2330-Sep-22574 570 649 -11.6%1%Revenue from operations1,144 1,270 Expenses:453 458 516 Cost of Goods Sold911 1,009 121 112 133 -9%9%Gross Margin233 261 21.1%19.6%20.5%65 bps154 bpsGross Margin %20.4%20.6%52 47 53 -2%11%Employee expenses99 99 76 70 78 -3%10%Other expenses146 154 3 12 5 -40%-74%Other income15 23 (4) 7 7 EBITDA4 31 -0.6%1.3%1.0%-167 bps-192 bpsEBITDA %0.3%2.4%31 38 33 Depreciation69 66 36 34 27 Finance costs69 53 (70) (64) (54) PBT(134) (88) -12.2%-11.3%-8.3%-393 bps-97 bpsPBT %-11.7%-6.9%(0.1) (0.1) (0.1) Tax Expenses(0.2) (0.2) (70) (64) (54) PAT(134) (87) (0.5) (0.5) (0.3) Other Comprehensive Income(1.0) (0.5) (71) (65) (54) Total Comprehensive Income(135) (88) 3 months endedGrowthConsolidated (₹ Cr) 6 months ended 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 167 stores with a total 13.54 Lacs Square Feet in over 41 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.
Nov-23
| RP-Sanjiv Goenka Group Presentation
11