Mufti owner Credo Brands reports Q2 sales growth of 16 percent

Credo Brands Marketing Limited, owner of men’s casual wear brand Mufti reported second quarter sales of 165.6 crores, up 16 percent and first half revenue growth of 21 percent to 284.1 crores.

The company’s same store sales growth (SSSG) for EBOs was 4.7 percent for the second quarter and remained flat for the first six month period.

Credo Brands recorded gross margins for the second quarter of 57.5 percent and for the first half at 57 percent. EBITDA and PAT for the second quarter reached 56.8 crores, up 11 percent and PAT was 28 crores, up 8 percent, while H1 EBITDA and PAT stood at 87 crores and 37 crores, respectively.

Commenting on the company’s performance, Kamal Khushlani, chairman & MD, Credo Brands Marketing Limited said: “We at Mufti thank the investor community for the tremendous support shown during the IPO. Despite facing these external challenges, the company has successfully sustained its growth momentum.”

“Some demand typically linked with the festive season has been deferred to the third quarter of this year, leading to a comparatively lower growth for Q2 & H1 FY24,” added Khushlani.

The company’s total EBO count at September 30, 2023 was 404 stores.

Commenting on the retail expansion plan, Khushlani said: “We intend to continue increasing our presence by setting up new points of sale and expanding our EBO network in existing as well as additional cities and regions across India. We expect emerging demand from existing and new cities will help fuel our growth."