Spencer's Retail Limited has informed the Exchange about Investor Presentation
SRL:SEC:SE:2021-22/25
July 12, 2021
The Manager Listing Department, National Stock Exchange of India Limited Exchange Plaza, 5th Floor Plot No. C/1, G-Block Bandra-Kurla Complex Bandra (East), Mumbai – 400 051 (Symbol: SPENCERS)
Dear Sir,
The General Manager Department of Corporate Service, BSE Limited Phiroze Jeejeebhoy Tower Dalal Street Mumbai – 400 001 (Scrip Code: 542337)
Sub: Investor updates/press release for the 4th quarter and year ended March 31, 2021
Pursuant to Regulation 30 of SEBI (LODR) Regulation, 2015, please find annexed herewith an updated copy of the Investor update / press release dated July 12, 2021 for the 4th quarter and year ended on March 31, 2021.
The above www.spencersretail.com
information
is also available on
the website of
the Company at
Thanking you, For Spencer’s Retail Limited
Rama Kant Company Secretary (FCS 4818)
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 – Q4 FY21
Jul-21
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Key Consolidated performance highlights
•
Improvement in Profitability despite 8% lower sales (Q4FY21 vs Q4 FY20)
• Despite restrictions on selling non essentials during part of the period, recovery of Sales
from non-food categories reached ~89%
•
Inspite of slower recovery in higher margin Non-food sales gross margin % reached at 21.1%
Q4 FY21 vs 21.8% Q4 FY20
• Natures Basket reported full year positive EBITDA first time ever (EBITDA% 7.6% vs (-)8.1%)
•
•
4.5x Growth in E-commerce business during the year
Improvement in EBITDA Margins % by 191bps from 3.3% to 5.2% (Q4FY21 vs Q4FY20)
* Non financial data are of Standalone Business
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Consolidated Financial Parameters FY21
Quarter
Quarter
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5 Stores added during the qtr
672 592 Revenue from Operation (₹ Cr)Q3FY21Q4FY2119.9%21.1%Gross Margin (%)Q3FY21Q4FY2147004400Gross Sales per Sq ft (₹) Q3FY21Q4FY211.44 1.47 Trading Area (Mn Sq ft) Q3FY21Q4FY21 Consolidated Financial Parameters FY21
YTD
YTD
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12 Stores added during the year
2,645 2,428 Revenue from Operation (₹ Cr)FY20FY2121.4%20.4%Gross Margin (%)FY20FY211.46 1.47 Trading Area (Mn Sq ft) FY20FY211860016700Gross Sales per Sq ft (₹) FY20FY21 92% Recovery Pre-COVID Levels
*Natures Basket Limited was acquired in July’2019 hence the Financials of 12 months ended Mar’21 are not comparable with previous year
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31-Mar-2131-Dec-2031-Mar-20Y-o-YQ-o-Q31-Mar-2131-Mar-20592 672 641 -8%-12%Revenue from operations2,428 2,645 467 538 501 Cost of Goods Sold1,932 2,079 125 134 140 -10%-7%Gross Margin496 566 21.1%19.9%21.8%-69 bps118 bpsGross Margin %20.4%21.4%50 47 48 6%7%Employee expenses193 191 67 72 84 -19%-7%Other expenses295 317 24 14 13 84%65%Other income53 32 31 29 21 EBITDA61 89 5.2%4.3%3.3%191 bps94 bpsEBITDA %2.5%3.4%38 34 48 Depreciation134 138 27 24 23 Finance costs91 82 (35) (30) (49) PBT(164) (131) -5.9%-4.4%-7.7%186 bps-144 bpsPBT %-6.8%-5.0%(0.2) (0.1) (0.2) Tax Expenses(0.4) (0.2) (35) (30) (49) PAT(164) (131) 0.2 (0.3) 0.3 Other Comprehensive Income(0.7) (0.6) (34) (30) (49) Total Comprehensive Income(165) (131) period endedGrowthConsolidated (₹ Cr) 12 months ended 94% Recovery Pre-COVID Levels
Trading Area of 1.01lacs Sq.ft added during the year
Saw sequential month on month recovery, later half of Qtr got impacted due to pandemic
Greater than ~89% of Recovery from Non-Food high margin Category
Sustaining EBITDA & PBT levels despite lower Sales
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31-Mar-2131-Dec-2031-Mar-20Y-o-YQ-o-Q31-Mar-2131-Mar-205 7 1 New Stores added12 10 164 160 160 Total Store count164 160 0.25 0.76 0.02 TA added (Lac sq.ft)1.01 0.66 13.74 13.52 13.73 TA exit (Lac sq.ft)13.74 13.73 518 586 554 -6%-12%Revenue from operations2,069 2,373 416 474 436 -5%-12%Cost of Goods Sold1,671 1,872 102 112 117 -13%-9%Gross Margin398 501 19.6%19.0%21.2%-151 bps60 bpsGross Margin %19.3%21.1%41 39 40 4%6%Employee expenses158 161 55 59 62 -12%-8%Other expenses240 261 21 13 11 93%68%Other income47 30 27 26 26 EBITDA47 109 5.2%4.4%4.7%52 bps77 bpsEBITDA %2.3%4.6%31 28 34 Depreciation106 105 20 19 17 Finance costs69 61 (24) (21) (25) PBT(128) (57) -4.7%-3.5%-4.6%-15 bps-117 bpsPBT %-6.2%-2.4%- - - Tax Expenses- - (24) (21) (25) PAT(128) (57) 0.4 (0.4) (0.4) Other Comprehensive Income(0.7) (1.4) (24) (21) (26) Total Comprehensive Income(129) (58) 3 months endedGrowthStandalone (₹ Cr) 12 months ended EBITDA improvement 1.5X Gross Margin Improvement by 417bps
Trading Area ~8k sqft added (2 stores) during the year
Successful business integration reflecting strong operational efficiency and improved profitability
Significant reduction in YoY Losses despite pandemic impact on Sales
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*Natures Basket Limited was acquired in July’2019 hence the Financials of 12 months ended Mar’21 are not comparable with previous year
31-Mar-2131-Dec-2031-Mar-20Y-o-YQ-o-Q31-Mar-2131-Mar-2033 31 31 Total Store count33 31 0.93 0.84 0.88 TA exit (Lac sq.ft)0.93 0.88 77 87 87 -11%-11%Revenue from operations363 273 54 65 65 -16%-17%Cost of Goods Sold265 214 23 22 22 3%4%Gross Margin98 59 30.0%25.6%25.8%417 bps441 bpsGross Margin %26.9%21.7%7 7 6 17%8%Employee expenses28 24 13 10 16 -17%27%Other expenses48 59 2 2 1 102%31%Other income6 2 5 7 2 EBITDA28 (22) 6.4%7.9%1.9%455 bps-145 bpsEBITDA %7.6%-8.1%7 7 12 Depreciation28 29 5 5 6 Finance costs20 18 (7) (5) (16) PBT(21) (69) -9.0%-5.6%-18.7%971 bps-339 bpsPBT %-5.7%-25.4%- - - Tax Expenses- - (7) (5) (16) PAT(21) (69) (0.2) 0.1 0.6 Other Comprehensive Income0.0 0.8 (7) (5) (16) Total Comprehensive Income(21) (69) 3 months endedGrowthStandalone (₹ Cr) 12 months ended Consolidated Financials – Balance Sheet
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*Natures Basket Limited was acquired in July’2019 hence the Financials of 12 months ended Mar’21 are not comparable with previous year
31-Mar-2131-Mar-20A) AssetsAssets1,262 1,279 Inventories267 248 Total Assets1,530 1,527 B) Equity & LiabilitiesEquity186 274 Other Liabilities1,042 946 Trade Payables (Net)301 308 Total Equity & Liabilities1,530 1,527 As atConsolidated (₹ Cr) Business Highlights
Moving towards OMNI Channel
Major shift of gear in direct to customer channel
Gifting as a Service
Personalized gifting delivered at your doorstep
Celebrating Consumer Events
• Republic Day • Holi • Makarsankranti
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Business Highlights
Strengthening our Health Positioning
Superior Convenience to customers
•
Strengthening Health positioning of Stores
• Delivery of Fresh & Fast service in 90mins
• Offerings to communicate & strengthen our
product offerings
• Convenience for both Online & Home Delivery
customers
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Online Business Growth >6.5X
• ORIPL is an E-commerce company 100% owned Subsidiary of Spencer’s Retail Limited
• Online store for Food, Grocery, Fresh, Apparel and General Merchandise and Liquor
In India, Online penetration to reach 10.7% in FY24 vs 4.7% in FY19
GMV (₹ in Cr)
E-commerce market is expected to be $99bn
by FY24
Indian Online grocery market is estimated to reach $18.2bn in FY24 vs $1.9mn in FY19, CAGR of 57%
Significant investments were made during
the year in the online platform for enhancing consumer experience
We have witnessed more than 6.5x growth from FY19 and 4.5x growth from last year
Ample scope of growth for every retailer offering best in class value to customers
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28 40 183 FY19FY20FY21 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 197 stores with a total 14.67 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.
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.
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