Relaxo Footwear: Quarterly Result update
27-08-2021

Results: Relaxo reported 37% growth in sales from low base and operating profit growth of 16% due to jump in other expenses.

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Key highlights

  • Sales growth was poor versus Jun’19 and still 23% below normalized sales
  • Gross profit margins have come to normalized levels from high levels in FY21 due to favourable raw material prices.
  • Volume growth in FY21 was 7% higher versus FY20 but recent quarter was impacted from second wave lockdown.

Management Outlook: Management continues to expand distribution reach and takeaway market share from unorganised players. It has been able to grow at healthy pace over last years from volume as well as realization growth. Management expects operating profit margins to revert to the mean from 21% in FY21. This leads to decline in EPS over next 2 years.

 

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