Food and grocery retail chain More Retail saw its net loss for 2021-22 widened four times to Rs 402 crore from Rs 78 crore in the previous year while its revenue grew marginally by 2% on year at Rs 4,867 crore.
The Amazon and Samara Capital-owned retailer, which plans its initial public offering (IPO) over the next 12-18 months, reported earnings before interest, tax, depreciation and amortisation (Ebitda) loss of Rs 83 crore in 2021-22 against Ebitda of Rs 196 crore in FY21, as per its latest regulatory filings to the Registrar of Companies (RoC).
The accumulated loss as on March 31, 2022, was Rs 1,039.3 crore against equity share capital of Rs 404.98 crore.
“The company has an assured business operation and has further expansion plans,” More Retail said in the filings. “Basis the projections prepared by the company, the management believes that the net current liabilities of Rs 559.86 crore will be bridged mainly through additional funding by the holding company, banks and internal accruals,” it added.
More Retail received fresh capital of Rs 100 crore last month from its holding company Witzig Advisory Services, taking the total capital infusion this fiscal year to Rs 200 crore, as per the RoC filings.
Samara Capital owns 51% of Witzig through Samara Alternate Investment Fund, while the balance 49% is owned by e-commerce major Amazon through two entities –Coda Holdings Singapore and Coda Holdings LLC. Last fiscal, the retailer received Rs 400 crore in funding from the owners.
Mohit Yadav, founder of business intelligence firm AltInfo, said More Retail has shown a marginal improvement in its top line by 2% and at the same time its expenses have increased by 9%, significantly impacting the bottom line. “To have a successful IPO, these numbers need to be hawkishly controlled,” he said.
An email sent to More Retail remained unanswered till press time Thursday.
More Retail had told ET in September that it operates 881 supermarkets and 42 hypermarkets with plans to set up around 100 new stores, including ten hypermarkets, this fiscal.
Last fiscal, it opened 129 supermarkets and 11 hypermarkets.
As per its RoC filings, food groceries including staples accounts for 54% of More’s total sales followed by non-food groceries at 20% and fresh products at 18%. It also sells apparel and general merchandise.
More in the filings said it has chalked out a “profitable growth strategy” driven by e-commerce expansion and rollout of new stores in current and new markets, a sustainable operating model with strong backend support to ensure timely and consistently high availability, and tight control on margin earnings and overhead costs.
The company was incubated by the Aditya Birla Group in 2006. It was acquired by Witzig in 2019.