'Fast fashion' segment revenues of Aditya Birla Fashion and Retail triples in Q1 with Forever 21
Aditya Birla Fashion and Retail has been trying to become India's largest fashion retailer for some time now. The company said acquisition of Forever 21 India's rights made a difference this quarter.
Key Highlights
- ABFRL revenues reached Rs 6633 crore this year with acquisition of Forever 21 India rights.
- Company’s standalone net loss shrank to Rs 20 crore in Q1FY18.
- EBITDA for its fast fashion segment dropped further on Year-on-Year basis to register a loss of Rs 14 crore.
The fashion arm of Aditya Birla Group – Aditya Birla Fashion and Retail (ABFRL) announced its first quarter earnings on Thursday.
The company’s standalone net loss shrank to Rs 20 crore from Rs 21 crore in the same period last year.
Its total income earned during the quarter stood at Rs 1777 crore. “ABFRL revenue grew by 25% compared to Q1 FY17 driven by strong performance across all business segment,” the company said.
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The ‘fast fashion’ segment of the company tripled in sales with the acquisition of Forever 21.
“Fast Fashion segment revenues tripled in Q1 due to addition of Forever 21,” ABFRL said.
The company which signed an MoU with Forever 21 in May last year, acquired rights of Forever 21 India in 2017. ABFRL’s revenue reached Rs 6633 crore this year.
Image Source: ABFRL report
Its net sales value (NSV) from its ‘fast fashion’ segment brought in Rs 120 crore in Q1FY18. This was a 211% growth over last year’s sales of Rs 39 crore only.
However EBITDA for its fast fashion segment dropped further on Year-on-Year basis to register a loss of Rs 14 crore from a loss of Rs 2 crore during the same period last year.
Lifestyle brands registered an NSV growth of 14% YoY to Rs 891 crore from Rs 779 crore in Q1FY17.
The company’s Madura segment registered an NSV growth of 25% to Rs 1050 crore. However it’s EBITDA declined 20% to Rs 37 crore from Rs 47 crore during the same period last year.
The company said total NSV grew 25% to Rs 1769 crore in Q1 FY18.
When signing the MoU with the Diana Retail Private Ltd franchise for the acquisition of Forever 21 the company said it was aiming to be the ‘largest fashion player’ in India.
“The proposed acquisition is in line with our strategic intent to create the largest integrated branded fashion player in the country. With the acquisition of Forever 21 India business, we aim to create a strong foothold in the womenswear business in the western wear segment,” the company said in a release dated May 25, 2016.
However the group has been attempting to become the largest branded clothing company in India for years and has turned to inorganic growth to achieve this goal.
In 2013 Aditya Birla Nuvo Ltd acquired Pantaloons.
In January 2016, Aditya Birla Group consolidated its garment business which merged Madura Garments Lifestyle Retail and Pataloons from Aditya Birla Nuvo into a single entity.
Currently the company claims to have over 4700 multi brand outlets and 1862 exclusive brand outlets.
Also Read: Can Forever 21 make Aditya Birla India’s biggest fashion player?
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