Aditya Birla Fashion records its highest ever Q1 sales, hopes Q2 to be bigger

• Aditya Birla Fashion and Retail reported its highest ever quarterly sales in the April to June quarter.
• The company also managed to turn its net loss of ₹352 crore to a net profit of ₹94 crore in a year.
• The parent company of Pantaloons and Lifestyle brand stores now believes that it could keep this momentum in the next quarter as well.

Aditya Birla Fashion and Retail (ABFRL) — the parent company of Pantaloons and Lifestyle stores— reported its highest ever quarterly sales in Q1FY23. However, it hopes to break this record again in the second quarter, as it expects the festival sales to take off in October.

Its Q1 operational revenues showed an over three-fold growth to ₹2,875 crore as compared to the same quarter last year. However, these revenues were also 39% higher than what they were in the Q1FY20 quarter, before the pandemic. Sequentially too its revenues grew by 23%.

Thanks to bumper sales, it also turned around its net loss of ₹352 crore in the same quarter last year to a net profit of ₹94 crore. It attributed this to strong performance of portfolio brands, accerrated ecommerce and omnichannel strategy, and aggressive store expansion as it added 1,600 more.

Its EBITDA (earnings before interest, taxes, depreciation, and amortization) margins expanded by 130 basis points (bps) over pre-Covid levels to reach 17.4% in Q1.
Source: Aditya Birla Fashion & Retail (ABFRL)

“Improved consumer confidence, value migration to the organized sector, and robust omnichannel presence led to strong growth and improved profitability. We expect this momentum to continue in upcoming quarters, with a further boost during the festive season,” the company said, in a statement.

Aditya Birla Fashion and Retail sells multiple international brands in India — including Allen Solly, American Eagle Outfitters, Forever 21, Louis Philippe, Peter England, Ted Baker, Sabyasachi and VanHeusen.

Out of these, youth fashion company American Eagle also managed to triple its sales compared to the pre-covid levels. Meanwhile, premium brands The Collective and Mono brands have grown their business two-fold since pre-Covid.
Source: Aditya Birla Fashion and Retail (ABFRL) investor presentation

The company, in its quarterly report, mentioned that the inner wear and athleisure segment achieved its highest ever quarterly sales in Q1. This was driven by strong e-commerce presence and network expansion, triggered by net addition of 2,000 new trade outlets.

Overall, Aditya Birla Fashion owns 29,000 outlets across brands

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