Credo Brands Marketing reports strong financial growth in H1 FY24

Credo Brands Marketing Limited (MUFTI), a leader in men’s casual wear, announced its Unaudited Financial Results for the Quarter and Half Year ended 30th September 2023, showcasing significant growth. The company, known for offering a diverse range of clothing for various occasions, reported a robust financial performance despite a challenging retail environment.

Robust Financial Performance in Q2 & H1 FY24

Credo Brands Marketing Limited recorded a Gross Profit of Rs. 95.3 crores and EBITDA of Rs. 56.8 crores in Q2 FY24, marking an increase of 16% and 11% respectively compared to the previous year. The Profit After Tax (PAT) stood at Rs. 28.0 crores, an 8% increase. The Half Year results were equally impressive, with total revenue growing by 21% year-over-year to Rs. 284.1 crores.

The company’s Gross Profit Margin remained strong at 57.5%, reflecting its efficient operational management. The EBITDA Margin and PAT Margin were reported at 34.3% and 16.9%, respectively.

Key Business Updates and Expansion

Credo Brands Marketing Limited expanded its Exclusive Brand Outlets (EBOs), adding 31 stores net in H1 FY24, bringing the total to 404 stores as of 30th September 2023. The sales mix for the first half of FY24 was diversified, with EBOs contributing 52.5%, followed by Multi-Brand Outlets (MBOs), Large Format Stores (LFS), Online channels, and others.

The product mix was also varied, with shirts, t-shirts, bottomwear, outerwear, and other categories meeting different customer needs throughout the year.

Strategic Insights from the Chairman & MD

Kamal Khushlani, Chairman & MD of Credo Brands Marketing Limited, expressed gratitude to the investor community for their support during the IPO and acknowledged the retail sector’s slowdown. Despite external challenges, the company has sustained its growth momentum. He noted the deferred demand due to the festive season, expecting an uptick in the third quarter.

Khushlani emphasized the brand’s focus on providing versatile wardrobe solutions. He highlighted the brand reinvention efforts since 2019, including a new brand identity, merchandise architecture, and retail identity, which have positively impacted the company’s performance.

Future Growth Plans

Credo Brands Marketing Limited intends to continue its expansion by opening new points of sale and EBO networks across India. The company’s focus on marketing and customer engagement initiatives is expected to enhance brand recall and drive further growth.

In conclusion, Credo Brands Marketing Limited’s financial results for H1 FY24 demonstrate resilience and growth in a challenging market. With strategic expansion plans and a focus on diverse product offerings, the company is well-positioned for continued success in the retail sector.