Lt Foods Limited · NSE:LTFOODS
Lt Foods — Q2 FY2021 Earnings Presentation
28 slides from Lt Foods's earnings presentation, Oct 30, 2020
Slide 1: Investor Presentation 1HY FY21 & Q2 FY21
Investor Presentation 1HY FY21 & Q2 FY21 1
Slide 2: Safe harbour statement
Safe harbour statement This presentation and the accompanying slides (the ‘Presentation’), which have been prepared by LT Foods Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 3: Contents
Contents Key Highlights Consumer Trends & Right–to–Win Financial Update Capital Allocation Plan Marketing Initiatives Strategic Focus Shareholding Pattern 3|LT Foods Investor presentation, 1HY FY21 & Q2 FY21 3
Slide 4: 1HY FY21 Key Highlights
1HY FY21 Key Highlights Improvement in Debt to EBITDA Basmati & Other Specialty Gross Profit up by 32% ratio1 (1.7x vs 2.6x) Rice business up by 20% EBITDA up by 34% Debt down by Rs. 150cr Organic business up by EPS up by 78% ROCE1 improved by 422 bps 82% (18.6% vs 14.4%) Cash generated from ROE1 im
Slide 5: Q2 FY21 Key Highlights (Y-o-Y)
Q2 FY21 Key Highlights (Y-o-Y) Basmati & Other Specialty Rice Gross Profit up by 35% business up by 19% Organic business up by 86% EBITDA up by 39% New Products Portfolio up by PAT up by 64% 40% 5|LT Foods Investor presentation, 1HY FY21 & Q2 FY21 5
Slide 6: Contents
Contents Key Highlights Consumer Trends & Right–to–Win Financial Update Capital Allocation Plan Marketing Initiatives Strategic Focus Shareholding Pattern 6|LT Foods Investor presentation, 1HY FY21 & Q2 FY21 6
Slide 7: Current Consumer Trends
Current Consumer Trends • Consumers habits, preferences and spend patterns witnessing a gradual shift towards being a conscious consumer with respect to healthier eating habits • Safety and Hygiene trend boosts demand for Branded/Packaged Food products • Increased penetration in new homes for Brande
Slide 8: Right-to-Win
Right-to-Win Robust Global Supply Chain Strong Global Brands to Provide Superior Consumer Experience •- Complete control on the value chain from “Farm to Fork” •- Flagship Brands “Daawat” and “Royal” enjoy leadership positions in India and US with market share of 27% and 50% •- Global Supply chain h
Slide 9: Contents
Contents Key Highlights Consumer Trends & Right–to–Win Financial Update Capital Allocation Plan Marketing Initiatives Strategic Focus Shareholding Pattern 9|LT Foods Investor presentation, 1HY FY21 & Q2 FY21 9
Slide 10: Segment-Wise Revenue Break-Up
Segment-Wise Revenue Break-Up Basmati & Other Organic Business New Product Portfolio Specialty Rice Flagship brands Daawat and Royal Health Segment – Daawat Quick Other global brands such as Indus Diversified portfolio comprising of Cooking Brown rice, Daawat Sehat Valley, 817 Elephant, Heri
Slide 11: 1HY FY21 – Result of Well Defined Strategies and Implementation
1HY FY21 – Result of Well Defined Strategies and Implementation Revenue EBITDA & EBITDA Margin • Revenue up 24% y-o-y 12.2% 13.2% • Gross Profit Margins increased by 175 bps on y-o-y basis, due to: 2,439 322 1,970 241 • Change in product mix towards higher margin products 1HY FY20 1HY FY21 1HY FY20
Slide 12: Q2 FY21 – Continues to deliver Strong Operating Performance
Q2 FY21 – Continues to deliver Strong Operating Performance Revenue EBITDA & EBITDA Margin • Revenue up 24% y-o-y 11.7% 13.3% 13.1% • Gross Profit Margins increased by 252 bps on y-o-y basis, due to: 1,221 1,218 162 160 984 116 • Change in product mix towards higher margin products Q2FY20 Q1FY21 Q2F
Slide 13: Basmati & Other Specialty Rice Break-Up
Basmati & Other Specialty Rice Break-Up India Revenue 54 62 64 62 46 266 322 341 219 315 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Revenue (Rs. Cr) Volume (MT '000) International Revenue 54 70 75 68 49 564 528 697 792 674 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Revenue (Rs. Cr) Volume (MT '000) * Q1 FY21 Basmat
Slide 14: Inventory and Working Capital
Inventory and Working Capital Working Capital Days Inventory Value (Rs. Cr) Sep-19 Sep-20 Paddy Rice 187 179 200 195 765 815 46 42 607 33 26 176 220 Inventory Days Payable Days Recievable Days Working Capital Days Sep-19 Sep-20 Inventory Days • Procurement of Paddy starts in Q3; this results in incr
Slide 15: Key Financial Ratios and Other Growth Parameters
Key Financial Ratios and Other Growth Parameters Debt/Equity Interest Coverage Ratio Current Ratio 2.7 Total Debt Long Term Debt 5.4 1.8 2.3 1.4 1.5 1.3 3.2 1.4 1.2 2.5 2.5 0.9 2.1 2.2 1.0 1.1 0.6 0.1 0.1 0.2 0.1 0.1 0.1 FY16 FY17 FY18 FY19 FY20 1HY FY21 FY16 FY17 FY18 FY19 FY20 1HY FY21 FY16 FY17 F
Slide 16: Global Footprint & Diversified Portfolio
Global Footprint & Diversified Portfolio Our diversified market presence as well as our balanced portfolio, serving a wider consumer audience, positions us to capitalize on emerging opportunities in the consumer food business. 1% 5% 5% 9% 9% 37% 14% FY20 FY20 Revenue by Revenue by geography business
Slide 17: Maximising Shareholders Wealth by Strategic Focus towards Profitable Growth
Maximising Shareholders Wealth by Strategic Focus towards Profitable Growth Revenue PAT 4,184 CAGR: 9% CAGR: 29% 199 2,979 72 FY16 FY20 FY16 FY20 Growth in revenue is being supported by strengthening the brands, widening distribution network and increasing brand penetration across all consumer segme
Slide 18: Contents
Contents Key Highlights Consumer Trends & Right–to–Win Financial Update Capital Allocation Plan Marketing Initiatives Strategic Focus Shareholding Pattern 18|LT Foods Investor presentation, 1HY FY21 & Q2 FY21 18
Slide 19: Capital Allocation Plan
Capital Allocation Plan We aim to balance the objectives of ploughing back earnings to support sustained growth, debt reduction and appropriate reward to shareholders through dividends Growth Utilizing the free cash flow generated for the growth in its Basmati and Organic business along with the new
Slide 20: Contents
Contents Key Highlights Consumer Trends & Right–to–Win Financial Update Capital Allocation Plan Marketing Initiatives Strategic Focus Shareholding Pattern 20|LT Foods Investor presentation, 1HY FY21 & Q2 FY21 20
Slide 21: Strengthening Brand Equity for our brand Daawat in Indian Market
Strengthening Brand Equity for our brand Daawat in Indian Market Launch of New TVC for Rakhi Festival Daawat celebrates the unbreakable bond of siblings through the video, themed around 'Khud ki raksha karke apno ki raksha karein'. Rakhi Campaign attracted massive PR coverage in many of the leading
Slide 22: Strengthening Brand Equity of Daawat and Royal in International Market
Strengthening Brand Equity of our brands Daawat and Royal in International Market Increasing Consumer Demand in store through demos, displays and ibotta digital New advertisement for Royal New advertisement for wide range platform Soya Masoori of Daawat products 90+ Demos at Restaurant Depot and par
Slide 23: Various Brand Initiative in Digital Space
Various Brand Initiative in Digital Space Daawat Brown Rice Digital Daawat Daawat Sehat – Digital Film AP Digital Campaign is live Campaign Continuing our efforts to build the Launch of New Campaign in South has led Brand to brand awareness and generate trials become Market leader in AP with 69.9% m
Slide 24: Contents
Contents Key Highlights Consumer Trends & Right–to–Win Financial Update Capital Allocation Plan Marketing Initiatives Strategic Focus Shareholding Pattern 24|LT Foods Investor presentation, 1HY FY21 & Q2 FY21 24
Slide 25: Strategic Focus
Strategic Focus Growth Margin Expansion • Solidify the leadership position in Strengthen key markets • Increase consumer penetration Financial Metrics across segments to grow current • Change in Product Mix market share • Improve EBITDA margins by ~ • Strengthen & widen distribution 50bps - 100bps p
Slide 26: Contents
Contents Key Highlights Consumer Trends & Right–to–Win Financial Update Capital Allocation Plan Marketing Initiatives Strategic Focus Shareholding Pattern 26|LT Foods Investor presentation, 1HY FY21 & Q2 FY21 26
Slide 27: Shareholding Pattern
Shareholding Pattern As on September 30, 2020 Others, 36.0% Promoter, 56.8% Other DII's, 0.6% FII, 1.6% Mutual Funds , 5.1% 27|LT Foods Investor presentation, 1HY FY21 & Q2 FY21 27
Slide 28: Investor Contact
World of LT foods Investor Contact Ms. Monika Chawla Jaggia Email: Monika.Jaggia@ltgroup.in Tel: 0124-3055210 CIN: L74899DL1990PLC041790 Website: ltgroup.in Address: Unit-134, 1st Floor, Rectangle-1, Saket District Centre, Saket, New Delhi-110017 DaawatBasmatiOfficialAuthenticRoyalFoods 28