Metro Brands (METROBRAND) Q4 22/23 earnings summary

Executive summary

• FY23 delivered record revenue, EBITDA and PAT, supported by normalized store operations, volume and price growth, improved sales mix, and lower discounting.

• The retail footprint reached 739 stores in 174 cities; 115 net stores were added across core formats, excluding Fila and Proline.

• The Cravatex acquisition expanded the sports and athleisure portfolio with Fila and Proline, adding new brands and channels for future growth.

Financial highlights

• Consolidated revenue from operations was ₹2,127.10 crore, up 58.39% YoY; total income was ₹2,181.51 crore, up 55.6%.

• Consolidated EBITDA reached ₹680.78 crore, up 65.9% YoY; PAT was ₹365.39 crore, up 70.6% YoY.

• Standalone revenue from operations was ₹2,051.84 crore versus ₹1,312.41 crore; standalone PAT was ₹373.18 crore versus ₹207.64 crore.

Outlook and guidance

• Guidance targets 200 net new stores over the next two fiscal years, with expansion focused on Tier II/III cities and existing markets.

• Management expects business normalization over the first two quarters of FY24 against a high base, while remaining confident of strong full-year performance.

• Fila product repositioning begins in Q2 FY24; excess inventory liquidation and new product introductions are planned through the fiscal year.

• BIS footwear standards taking effect January 1, 2024 may initially disrupt supply; inventory may be held slightly higher depending on conditions.