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Future Lifestyle Fashions Ltd.

BSE: 536507 Sector: Industrials
NSE: FLFL ISIN Code: INE452O01016
BSE 00:00 | 18 Sep 103.55 -0.60
(-0.58%)
OPEN

102.15

HIGH

105.30

LOW

102.15

NSE 00:00 | 18 Sep 103.60 -0.40
(-0.38%)
OPEN

105.80

HIGH

105.80

LOW

103.00

OPEN 102.15
PREVIOUS CLOSE 104.15
VOLUME 88979
52-Week high 470.00
52-Week low 91.40
P/E
Mkt Cap.(Rs cr) 2,089
Buy Price 103.55
Buy Qty 100.00
Sell Price 104.00
Sell Qty 377.00
OPEN 102.15
CLOSE 104.15
VOLUME 88979
52-Week high 470.00
52-Week low 91.40
P/E
Mkt Cap.(Rs cr) 2,089
Buy Price 103.55
Buy Qty 100.00
Sell Price 104.00
Sell Qty 377.00

Future Lifestyle Fashions Ltd. (FLFL) - Chairman Speech

Company chairman speech

Dear Shareholders

We are pleased to share with you the annual report of your Company for FY 2018-19. Theopportunity landscape of our business is widening significantly in a largelyconsumption-driven economy such as India and we are fully equipped to leverage thepositivity in the macro environment

The lifestyle fashion market in India is among the fastest evolving businesses in thecountry. Brands consumers and distribution channels are simultaneously going throughrapid transformation. Regardless of the size and segment companies in this space need tobe agile digital and technology-led and should be able to operate with velocity andfaster speed- to-market. FY 2018-19 saw us focus on multiple initiatives that keep ourbrands and business relevant to customers and at the same time enhance the productivityand resilience of the organisation to cope and benefit from change.

During this financial year we posted consolidated revenues of Rs 5728 crore a growthof 27% over the last financial year. Growth in business was accompanied by retainingEBITDA margins at 9.8% inspite of significant increase in share of Brand Factory tooverall revenue. Our net profit stood at Rs 189 crore in FY 2018-19 compared to Rs 126crore in the previous year; and this resulted in an expansion of earnings per share (EPS)by 48% to Rs 9.82.

During the year the team focussed on reinvigorating each of our brands and building asharper focus on consumers through data and better understanding of the consumersRslifestyles preferences and aspirations. Most of our brands now have a strong digitalpresence to connect with customers and keep the brand alive interactive and relevantevery day of the year.

Lee Cooper is among our flagship brands and over the years we have invested in growingthis brand. During the years under review we added the footwear franchise to itsportfolio and introduced new products in the market. This will further aid the growth ofthe brand and generate higher returns from the investments we make in this brand. ThisyearsRs Lee Cooper television campaign received over 7 million views on different socialmedia platforms.

With the addition of the footwear franchise we believe the brand now has the potentialto emerge among the largest consumer brands in India.

Plus size fashion provide a very large opportunity in India. Our brand aLL has beenthe leader in this segment and has earned itself a large and very loyal customer baseacross the country. This year we organised the first beauty pageant exclusively forplus-size women. During the year we launched an exclusive e-commerce portal for aLL tofurther enhance its reach among its target customers. We are happy to report aLL Onlinehas met with an unprecedented success that reflect the popularity the stores have so farenjoyed.

Without the limitations of physical space the digital platform is actively exploringif it now can extend its merchandise to a far wider range of categories that serve theplus-size market. In addition to aLL many of our brands operate several populardigital-commerce platforms including Cover Story and Clarks. Most of our brands are alsoavailable across leading e-commerce channels in the country.

To further strengthen our digital presence and expertise we acquired 16.25% stake inKoovs Plc. and intend to reach upto 29.9% stake.

Koovs operates the India-focussed popular fashion portal Koovs.com.

With its easy navigation catwalk videos 360 product views and a portfolio ofhome-grown fashion brands Koovs.com enjoys a cult-like following among its customers. Wehave deep expertise in both digital technology and fashion design; and are uniquelypositioned to grow profitably in the coming years. Apart from integrating Koovs.com brandswithin Central stores we are also leveraging the Koovs.com expertise and knowledge inbuilding digital platforms for our brands.

In the forthcoming financial year we are slated to launch Brand FactoryRss e-commerceplatform backed by the technical expertise and platform provided by Koovs. As a leadingoff-price brand outlet chain we are confident that Brand Factory Online will performexceedingly well in delivering value for customers and for us at large.

While we were growing and strengthening our brands we also extended our owndistribution network. At the end of the year we were operating 44 Central storesincluding a newly launched iconic store in KolkataRss New Market area. We opened 31 newBrand Factory stores taking the total store count to 93.

Brand Factory is now by far our leading off-price outlet chain and enjoys a strongconnect to attract young customers across large and small towns alike. Brand Factory grewat a faster pace driving overall volume growth for us to 28% year-on-year. Along with thebrandsRs exclusive brand outlets we now operate 6.8 million square feet of retail spaceacross the country.

Ongoing structural reforms and a favourable demographic advantage casts a positiveoutlook on the Indian consumer businesses. The domestic fashion and apparel market isestimated to touch $59.3 billion by 2022 making it the sixth largest in the world andcomparable with United KingdomRss ($65 billion) and GermanyRss ($63.1 billion).

With a projected annual GDP growth and on the back of high domestic privateconsumption a young working-age population and policy reforms India is a critical engineof global economic growth. Global consultancy major McKinsey in its report RsHow IndiaRssAscent Could Change the Fashion IndustryRs estimates that the domestic market is expectedto attract over 300 international fashion brands within the next couple of years.

We firmly believe that both the opportunity and competitive intensity in the lifestylefashion market in India will steadily rise from here on.

With an integrated business of a wide portfolio of brands and own retail networkscoupled with our investments in the digital space we believe we are well poised to win inthis fast- evolving market.

Our future strategy and growth potential depends on the imagination and hard work ofour teams and I appreciate their contribution in all these years to make us what we aretoday.

I on behalf of the Board and the entire leadership team thank all our stakeholdersfor their continued trust and support and for acting as our backbone to tap the immensemarket potential.

Rewrite Rules. Retain Values.

Kishore Biyani