Spencer's Retail Limited has informed the Exchange about Investor Presentation
SRL:SEC:SE:2021-22/33
August 10, 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 1st quarter ended June 30, 2021.
Pursuant to Regulation 30 of SEBI (LODR) Regulation, 2015, please find annexed herewith a copy of the Investor update / press release dated August 10, 2021 for the 1st quarter ended on June 30, 2021.
The above information is also available on the website of the Company at www.spencersretail.com.
Thanking you,
For Spencer’s Retail Limited
Rama Kant (Company Secretary) FCS-4818
Encl: As above
Spencer's Retail Limited (Formerly Known as RP-SG 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 – Q1 FY22
Aug-21
| RP-Sanjiv Goenka Group Presentation
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Key Consolidated performance highlights
•
•
Improvement in Profitability by ₹ 31 crore (Q1 FY22 vs Q1 FY21), despite the
stronger second wave COVID-19 restrictions.
Inspite of slower recovery in higher margin Non-food sales, gross margin %
reached at 20.5% Q1 FY22 vs 20.5% Q1 FY21
• Natures Basket sustained its profitability despite reporting lower QoQ sales
•
•
3.1x Growth in OMNI Channel business during the quarter
Improvement in EBITDA Margins % by 604 bps from (-)0.7% to 5.4% (Q1FY21 vs
Q1FY22) by cutting cost and other various cost savings initiatives
Aug-21
| RP-Sanjiv Goenka Group Presentation
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Consolidated Financial Parameters FY21
Quarter
Quarter
Aug-21
| RP-Sanjiv Goenka Group Presentation
Annualised Gross Sales per sqft
2 Stores added during the Qtr
3
1.47 1.46 Trading Area (Mn Sq ft) Q4FY21Q1FY221430014600Gross Sales per Sq ft (₹) Q4FY21Q1FY22592 552 Revenue from Operation (₹ Cr)Q4FY21Q1FY2221.1%20.5%Gross Margin (%)Q4FY21Q1FY22 Spencer’s Business Highlights
Celebrating Consumer Events
Moving towards OMNI Channel
Major shift of gear in direct to customer channel
3 Hours Fastest Delivery
Aug-21
| RP-Sanjiv Goenka Group Presentation
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Natures Basket Business Highlights
Strengthening our Health Positioning
Superior Convenience to customers
•
Strengthening Health positioning of Stores
• Delivery of Fresh & Fast service in 90 mins
• Offerings to communicate & strengthen our
product portfolio
• Convenience for both Online & Home Delivery
customers
Aug-21
| RP-Sanjiv Goenka Group Presentation
5
₹31cr Improvement in PBT vs Q1FY21
We have taken significant
cost cutting measures &
various other cost savings
initiatives
Significant YoY and
QoQ improvement in
profitability despite
lower QoQ Sales
Aug-21
| RP-Sanjiv Goenka Group Presentation
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30-Jun-2131-Mar-2130-Jun-20Y-o-YQ-o-Q31-Mar-21552 592 547 1%-7%Revenue from operations2,428 439 467 435 Cost of Goods Sold1,932 113 125 112 1%-9%Gross Margin496 20.5%21.1%20.5%1 bps-61 bpsGross Margin %20.4%47 50 48 -3%-7%Employee expenses193 59 67 75 -21%-12%Other expenses295 23 24 8 197%-4%Other income53 30 31 (4) EBITDA61 5.4%5.2%-0.7%604 bps18 bpsEBITDA %2.5%32 38 31 Depreciation134 22 27 20 Finance costs91 (24) (35) (55) PBT(164) -4.3%-5.9%-10.0%571 bps157 bpsPBT %-6.8%(0.1) (0.2) (0.1) Tax Expenses(0.4) (24) (35) (55) PAT(164) (0.2) 0.2 (0.3) Other Comprehensive Income(0.7) (24) (34) (55) Total Comprehensive Income(165) period endedGrowthConsolidated (₹ Cr) 12 months ended ₹ 30cr improvement in PBT
Trading Area of 0.39 lacs
Sq.ft. added during the Qtr
Improvement in our Cost
structure through cost
cutting measures &
various other initiatives
Significant Improvement
of ₹ 30 crore PBT levels vs
Q1FY21
Aug-21
| RP-Sanjiv Goenka Group Presentation
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Financials for the period ended Jun’21 includes one time gain from investment
30-Jun-2131-Mar-2130-Jun-20Y-o-YQ-o-Q31-Mar-212 5 - New Stores added5 154 164 158 Total Store count164 0.39 0.25 - TA added (Lac sq.ft)0.25 13.69 13.74 13.37 TA exit (Lac sq.ft)13.74 472 518 439 7%-9%Revenue from operations2,069 382 416 356 7%-8%Cost of Goods Sold1,670 90 102 84 8%-11%Gross Margin398 19.1%19.6%19.1%6 bps-52 bpsGross Margin %19.3%37 41 40 -7%-10%Employee expenses158 51 55 59 -14%-7%Other expenses240 21 21 7 201%-2%Other income47 23 27 (8) EBITDA47 5.0%5.2%-1.8%681 bps-25 bpsEBITDA %2.3%23 31 24 Depreciation106 17 20 15 Finance costs69 (17) (24) (47) PBT(128) -3.6%-4.7%-10.6%706 bps112 bpsPBT %-6.2%- - - Tax Expenses- (17) (24) (47) PAT(128) (0.2) 0.4 (0.4) Other Comprehensive Income(0.7) (17) (24) (47) Total Comprehensive Income(129) 3 months endedGrowthSRL Standalone (₹ Cr) 12 months ended Standalone Financials
Improvement in Gross
Margin % by 189 bps
despite lower sales of
26% YoY
Aug-21
| RP-Sanjiv Goenka Group Presentation
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30-Jun-2131-Mar-2130-Jun-20Y-o-YQ-o-Q31-Mar-2133 33 31 Total Store count33 0.93 0.93 0.84 TA exit (Lac sq.ft)0.93 80 77 108 -26%4%Revenue from operations363 58 54 79 -28%6%Cost of Goods Sold265 22 23 28 -20%-3%Gross Margin98 28.1%30.0%26.2%189 bps-188 bpsGross Margin %26.9%7 7 7 -2%-9%Employee expenses28 11 11 14 -20%2%Other expenses46 2 2 1 164%-14%Other income6 7 7 9 EBITDA30 8.6%9.6%7.9%67 bps-101 bpsEBITDA %8.3%8 7 7 Depreciation28 4 7 5 Finance costs23 (5) (7) (4) PBT(21) -6.7%-9.0%-3.6%-311 bps225 bpsPBT %-5.7%- - - Tax Expenses- (5) (7) (4) PAT(21) 0.0 (0.2) 0.2 Other Comprehensive Income0.0 (5) (7) (4) Total Comprehensive Income(21) 3 months endedGrowthNBL Standalone (₹ Cr) 12 months ended “ORIPL” Improved Profitability & 3.1x GMV growth
GMV (₹ in Cr)
Aug-21
| RP-Sanjiv Goenka Group Presentation
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• •
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.
38 118 Q1FY21Q1FY2230-Jun-2131-Mar-2130-Jun-20Y-o-YQ-o-Q31-Mar-21118.0 54.0 38.0 3.1x2.2xGross Merchandise Value (GMV)183.0 7.9 0.8 1.0 707.4%866.9%Revenue from operations3.8 3.1 1.8 1.7 87%77%Employee expenses6.9 5.4 2.9 3.4 60%86%Other expenses13.2 (0.6) (3.9) (4.1) -84.7%-84.0%EBITDA(16.3) -8%-473%-414%EBITDA %-427%0.2 0.2 0.2 11%12%Depreciation0.9 0.4 0.0 0.0 Finance costs0.0 (1.3) (4.1) (4.3) -70%-69%PBT(17.1) -16%-499%-437%PBT %-450%- - - Tax Expenses- (1.3) (4.1) (4.3) -70%-69%PAT(17.1) (0.0) (0.0) 0.0 Other Comprehensive Income(0.0) (1.3) (4.1) (4.3) -70%-69%Total Comprehensive Income(17.1) ORIPL Standalone (₹ Cr) 12 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 187 stores with a total 14.62 Lacs Square Feet in over 40 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. 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.
Aug-21
| RP-Sanjiv Goenka Group Presentation
10
Spencer’s Retail Limited
Q1 FY22 – Highlights: Consolidated Revenue from Operations at ₹552 Crore;
Consolidated Gross Margin stands at 20.5%
Improvement in Profitability by ₹31 Crore (Q1FY22 vs Q1FY21) 3.1x Growth in Omni Channel business (Q1FY22 vs Q1FY21)
Kolkata: Aug 10, 2021: Spencer’s Retail Ltd reported standalone turnover of ₹472 crore and Gross Margin of 19.1% for quarter ended Jun 30, 2021. Spencer’s operates with 154 Stores with a total trading area of 13.69 Lacs square feet as on Jun 30, 2021.
Natures Basket Ltd reported standalone turnover of ₹80 crore and Gross Margin of 28.1% for the quarter ended Jun 30, 2021. Natures Basket operates with 33 stores with a total trading area of 0.93 Lacs square feet as on Jun 30, 2021. Natures Basket continues to be EBITDA positive on quarter on quarter basis.
Unaudited Consolidated Financial Results for the quarter ended Jun 30, 2021:
Revenue for the quarter ₹ 552 Cr & Gross Margin ₹ 113 Cr at 20.5% EBITDA ₹30 Cr PAT (-) ₹24 Cr, reflecting 571 bps YoY recovery (from (-)10% Q1FY21 to (-)4.3% Q1FY22) 2 new Spencer’s stores added during the quarter ORIPL our OMNI Channel Business witnessed 3.1x growth & improved its profitability by 70%
(from (-)4.3crore Q1FY21 to (-)1.3crore Q1FY22)
Mr. Shashwat Goenka, Sector Head, said, “The lockdown in the second wave was far more stringent in terms of number of hours allowed for our operations. Also, restrictions similar to last year on not allowing sale of non-essentials came in, which impacted the higher margin non-food sales. We were better prepared and the business has recovered quickly post the stringent lockdown of May & June.
Our efficiency initiatives have sustained; though Spencer’s standalone sales were higher by 7% vs Q1 last year, we have improved our consolidated bottom line by ₹31crore.
Mr. Goenka added, “We continue to see a strong momentum in our OMNI Channel business with 3.1x growth over last year.”
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 187 stores (including Natures Basket) with a total 14.6 Lacs Square Feet in over 40 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. 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.