24 May 2023, Mumbai
Aditya Birla Fashion and Retail Ltd (ABFRL) announced a consolidated net loss of Rs 194.54 crore for the fourth quarter (Q4) ending on March 31, 2023.
This is in contrast to a consolidated net profit of Rs 31.90 crore in the same quarter of the previous fiscal year.
Factors Affecting Profitability:
The company attributed the loss to negative operating leverage resulting from sluggish sales. Increased marketing spending (approximately 1.5 times compared to the previous year) and continued investments in TMRW also impacted profitability during the quarter.
Increased Total Income:
Despite the net loss, ABFRL's total income rose by 26.2% to Rs 2,916.13 crore in Q4 FY23, compared to Rs 2,309.55 crore in the corresponding quarter of the previous fiscal.
This growth was driven by strong retail like-to-like (LTL) sales across businesses, an accelerated omnichannel approach, and network expansion, with over 500 stores added in the past year.
Total Expenses and Future Outlook:
The company's total expenses increased to Rs 3,177.64 crore in Q4 FY23 compared to Rs 2,266.06 crore in the same quarter of the previous fiscal. ABFRL remains focused on its strategy of building strong, timeless brands and managing its businesses with flexibility and agility as the economic situation recovers.
The company sees potential for significant growth in the apparel industry, supported by premiumization and the shift from unbranded to branded products.
Retail Network:
ABFRL currently operates 3,977 stores across 33,535 multi-brand outlets, with 6,723 points of sale in department stores throughout India as of March 31, 2023.
