Vaibhav Global (VAIBHAVGBL) Q4 11/12 earnings summary

Executive summary

• FY12 consolidated sales rose 22.95% and profit grew 58.95% amid volatile global conditions; direct-to-consumer sales reached 85.87% of revenue.

• The US and UK retail model expanded to lifestyle products, with over 500,000 registered customers and repeat purchases exceeding 8 per customer annually, up from 6.5.

Financial highlights

• Consolidated turnover was ₹646.49 crore vs ₹525.82 crore in FY11, up 22.94%; PAT after exceptional items was ₹68.50 crore vs ₹43.10 crore.

• Standalone turnover was ₹176.68 crore vs ₹145.43 crore, up 21.48%; PAT after exceptional items was ₹14.09 crore vs ₹17.37 crore.

• Consolidated PBDIT was ₹100.64 crore vs ₹63.60 crore; PBT before exceptional items was ₹78.79 crore vs ₹42.40 crore.

• Standalone PBDIT was ₹27.16 crore vs ₹15.45 crore; PBT before exceptional items was ₹14.60 crore vs ₹3.04 crore.

Outlook and guidance

• Growth priorities include same-household sales, US/UK network expansion, brand investment and new products; expansion to other developed and developing markets is planned after gaining reasonable share in current markets.

• Management expected improvement in FY13, dependent on economic conditions and resulting demand growth.

• Lifestyle products, lower price points and wider offerings were expected to support customer repeat purchases and leverage the existing customer base.