Lt Foods Limited · NSE:LTFOODS
Lt Foods — Q2 & H1 FY24 Earnings Presentation
36 slides from Lt Foods's earnings presentation, Oct 30, 2023
Slide 1: Cover letter to stock exchanges
Ref-LTF/ SE/ 2023-24/ Date: October 30, 2023 To, BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G, Dalal Street Bandra Kurla Complex, Mumbai- 400001 Bandra (E) Mumbai – 400 051 Sub: Investor Presentation Ref. Code: 532783. Scrip ID: DAAWAT Dear
Slide 2: Investor Presentation – Q2 & H1 FY24
LT Foods Limited Investor Presentation – Q2 & H1 FY24 October 2023
Slide 3: Safe Harbour
Safe Harbour 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 securities
Slide 4: Index
INDEX Q2 & H1 FY24 Results Highlights Key Developments Strategy and Outlook ESG Framework and Goals Shareholding Pattern
Slide 5: Q2 & H1 FY24 Results Highlights
Q2 & H1 FY24 Results Highlights
Slide 6: Q2 FY24 Key Highlights (YoY)
Q2 FY24 Key Highlights (YoY) REVENUE 15% EBITDA 43% Book Value Per Share (₹) ₹ 89.5 (from ₹ 73.8) EBIT 48% Return on Equity 19.5% (from 16.5%) PBT 53% Return on Capital Employed 21.9% (from 17.7%) PAT 65% Cash Profit 54% LT Foods Investor Presentation Q2 FY24
Slide 7: Q2 FY24 Financial Update (YoY)
Q2 FY24 Financial Update (YoY) ▪ Revenue up 15% y-o-y aided by Revenue Gross Profit EBITDA accelerated brand investments and scaling of distribution in Basmati & 5% 43% Other Specialty Rice segment 15% 1,732 1,992 650 255 615 178 ▪ Gross Profit down by 5% y-o-y & Gross Profit margin contracted by 65
Slide 8: Q2 FY24 Segment Highlights (YoY)
Q2 FY24 Segment Highlights (YoY) Total Revenue 15% Basmati & Other Specialty Segment 21% Convenience & Health Segment 19% Organic Segment* -10% * Due to anti-dumping duty on Organic Soya imports in U.S. LT Foods Investor Presentation Q2 FY24
Slide 9: H1 FY24 Financial Update (YoY)
H1 FY24 Financial Update (YoY) ▪ Revenue up 13% y-o-y aided by Revenue Gross Profit EBITDA accelerated brand investments and scaling of distribution in Basmati & 13% 0.2% 35% Other Specialty Rice segment 3,781 479 1,222 1,219 355 ▪ Gross Profit declined slightly & Gross 3,352 Profit margin contracte
Slide 10: H1 FY24 Segment Highlights (YoY)
H1 FY24 Segment Highlights (YoY) Total Revenue 13% Basmati & Other Specialty Segment 23% Convenience & Health Segment 7% Organic Segment* -22% * Due to anti-dumping duty on Organic Soya imports in U.S. LT Foods Investor Presentation Q2 FY24
Slide 11: Segment Update – Basmati & Other Specialty Rice
Segment Update – Basmati & Other Specialty Rice Growing at a 3 Year CAGR of 13% Revenue International India 3,192 2,606 955 819 23% 2,237 1,787 H 1 F Y2 3 H 1 F Y2 4 Gross Profit & EBITDA & Margin Margin 38.3% 32.5% 13.5% 11.6% 1,039 430 998 303 5% 42% H1 FY23 H1 FY24 H1 FY23 H1 FY24 All Figures in
Slide 12: Segment Update – Organic Segment
Segment Update – Organic Segment Growing at a 3 Year CAGR of 10% Revenue & Growth* 418 326 -22% H1 FY23 H1 FY24 Gross Profit & EBITDA Margin & Margin 38.0% 38.3% 10.5% 10.7% 44 35 159 125 -21% -20% H1 FY23 H1 FY24 H1 FY23 H1 FY24 * Due to anti-dumping duty on Organic Soya imports in U.S. All Figures
Slide 13: Segment Update – Convenience & Health Segment
Segment Update – Convenience & Health Segment Growing at a 3 Year CAGR of 30% Revenue & Growth 86 92 7% H1 FY23 H1 FY24 Gross Profit & EBITDA Margin & Margin 30.6% 35.5% 33 26 -4 24% -11 H1 FY23 H1 FY24 H1 FY23 H1 FY24 -4.3% -13.1% All Figures in ₹ Crore unless specified LT Foods Investor Presentati
Slide 14: Improving Working Capital Cycle
Improving Working Capital Cycle Debtors Days Debtors Amount (Rs. Cr) 543 36 381 380 26 24 21 21 16 228 11 184 8 9 120 51 37 31 India International Organic India International Organic Sep'22 Jun'23 Sep'23 Sep'22 Jun'23 Sep'23 Inventory Days Inventory (Rs. Cr) 1,891 192 1,361 155 158 1,021 134 107 90
Slide 15: Key Developments
Key Developments LT Foods Investor Presentation Q1 FY24
Slide 16: Strong Progress in Q2 & H1
Strong Progress in Q2 & H1 Market Share in India % Gr.% New Countries added, taking 30.2% 160 Bps the total number to 78 Daawat consuming Households in India +5 Gr.% 48 Lakh 24% LT Foods Investor Presentation Q2 FY24
Slide 17: Key Developments - India
Key Developments - India ▪ India business that contributes 29%, grew by 15%. ▪ LT Foods Ltd. wins a first-of-its-kind Guinness Record for “The Largest Biryani Tasting Session” celebrates ‘Daawat World Biryani Day”. ▪ Strengthened our Super Food portfolio by launching ‘Daawat® Quick Cooking Red Rice’
Slide 18: Key Developments - Americas
Key Developments - Americas ▪ USA business that contributes 41%, grew by 27%. ▪ Strengthened market leadership in Basmati Rice segment, gaining 1.6% market share in Q2 FY24 vs Q2 FY23 (LTFA value MS on Total US xAOC, Nielsen). ▪ Royal brand was the official sponsor of the inaugural season of Major L
Slide 19: Key Developments – Middle East, Europe & Rest of the World
Key Developments – Middle East, Europe & Rest of the World ▪ Middle East market contributes 6%, grew by 55%. ▪ Europe business contributes 17%, grew by 13% and Rest of the World contributes 8% also witnessed 8% growth. ▪ LT Foods Europe BV was set up in 2017 as a greenfield operation near Rotterdam,
Slide 20: Key Developments – Organic Segment
Key Developments – Organic Segment ▪ LT Foods’ Organic Business Arm - Nature Bio Foods (NBF) inaugurates new facility in Uganda, Africa 1. The new facility will be involved in the procurement and processing of Soya meal and help in the expansion of product portfolio, including Chia Seeds, Sesame See
Slide 21: Key Developments – Convenience & Health Segment
Key Developments – Convenience & Health Segment Biryani Kit across E-Com ▪ LT Foods’ Convenience & Health Segment grew by 7%. ▪ Our margins improved on Gross Profit & EBITDA levels. ▪ In the Health Segment, we also launched Daawat Red Rice during the quarter. Driving bestseller through visibility ca
Slide 22: Marketing Campaigns
Marketing Campaigns 80+ recipe reels in Insta/FB; reach to 58L YouTube - Highest Subscribers in the Category (Current Subscribers (National+ Regional) 213,563 6,89,246 Views (National+ Regional 4L+ Views Daawat Sponsoring- The Gourmet Fest Biryani Kit Brand Initiatives across different platforms Bir
Slide 23: Marketing Campaigns
Marketing Campaigns OWN THE FIRST “WORLD BIRYANI DAY” IN UAE STRENGTHENING DAAWAT® EQUITY IN UAE Printed & digital press • 193K printed copies • Approx. 200K Build awareness among Drive consideration & Strengthen FCBR online press Arab & Asian consumers positive WOM: via USP with single REINSTATE So
Slide 24: Strategy and Outlook
Strategy and Outlook
Slide 25: 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 Debt Reduction Utilizing the free cash flow Goal is to maintain our Debt/ generated for the growth in its EB
Slide 26: Strategic Priorities
Strategic Priorities Growth • Expanding our product Investing in portfolio, by introducing Capabilities new products to increase appeal across consumer segments. Margin Expansion • Digital Transformation • Entering in new • Create a Future Ready geographies and widening • Building economies of Being
Slide 27: Way Forward
Way Forward We continue to focus on strategic pillars of Growth, Margin Expansion and Strengthening of Financial Metrics to create a fully integrated, global, strong, progressive, sustainable, predictable, profitable, and growing consumer business Growth Margin Strengthen Expansion Financial Metrics
Slide 28: ESG Framework and Goals
ESG FRAMEWORK and Goals
Slide 29: ESG Framework
ESG Framework Responsible Farms | Responsible Sourcing | Responsible Operation | Responsible Brands | Responsible Movement | Responsible Governance | Responsible Value Creation Responsible Farms Responsible Brands Organic Water Stubble Recyclable Plastic Farmland Stewardship Burning Packaging Neutra
Slide 30: Environment Scorecard and Goals
Environment Scorecard and Goals (LT Foods Ltd.; Daawat Foods Ltd., Nature Bio Food Ltd., Eco Pure Specialities Ltd.) Sustainable Harvesting Organic Farmland of Paddy Baseline : 13,000 farmers trained Baseline : 1.4 lakh acre Sustainable FY23 : 16,525 farmers trained FY23 : 1.64 lakh acre Farming 50,
Slide 31: Environment Scorecard and Goals
Environment Scorecard and Goals (LT Foods Ltd.; Daawat Foods Ltd., Nature Bio Food Ltd., Eco Pure Specialities Ltd.) Water Conservation Water Recharge Baseline : 110 Bn litres Baseline : 4 Ponds Water FY23 : 110 Bn litres FY23 : 7 Ponds 140 billion liters of water saving Renovation and construction
Slide 32: Social Scorecard and Goals
Social Scorecard and Goals (LT Foods Ltd.; Daawat Foods Ltd., Nature Bio Food Ltd., Eco Pure Specialities Ltd.) Infrastructure Quality Education Safe and Clean Women Health Development Drinking water Baseline : 10 Villages Baseline : 19 Schools Baseline : 20,000 beneficiaries Baseline : 5,000 benefi
Slide 33: Governance Scorecard and Goals
Governance Scorecard and Goals (LT Foods Ltd.; Daawat Foods Ltd., Nature Bio Food Ltd., Eco Pure Specialities Ltd.) ESG Committee at ESG Organization ESG Goals and ESG Materiality Board Structure Target Analysis ESG & CSR Committee Draft prepared and Finalized & Declared Materiality Matrix Governanc
Slide 34: Shareholding Pattern
Shareholding Pattern As on September 30, 2023
Slide 35: Shareholding Information
Shareholding Information Mutual Funds, 3.73% Fll, 6.02% Shareholder Information as on September 30, 2023 BSE Ticker 532783 NSE Symbol DAAWAT Market Cap (₹ Cr)* 5,766 % Free- float 41.0% Free Float Market Cap (₹Cr) 2,364 Promoter, 51.00% Others, 39.25% Shares Outstanding (Cr) 34.7 Industry Consumer F
Slide 36: Investor Contact
Investor Contact Ms. Monika Chawla Jaggia Monika.Jaggia@ltgroup.in 0124-3055210 ltgroup.in DaawatBasmatiOfficialAuthenticRoyalFoods CIN: L74899DL1990PLC041790 Corporate Office Address: Registered Office Address: 4th Floor, MVL I Park, Unit-134, 1st Floor, Rectangle-1, Saket Sector – 15 Gurugram - 12