Lt Foods Limited · NSE:LTFOODS
Lt Foods — Q3 FY2020 Earnings Presentation
36 slides from Lt Foods's earnings presentation, Feb 6, 2020
Slide 1: Investor Presentation 9M & Q3 FY2020
Investor Presentation 9M & Q3 FY2020 LT Foods Investor Presentation, February 2020 1
Slide 2: Safe Harbor
Safe Harbor 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 3: 9M & Q3FY20 Financial Performance
9M & Q3FY20 Financial Performance 3
Slide 4: 9M FY20 Key Highlights
9M FY20 Key Highlights Branded Portfolio 76% vs 70% • Branded Revenue up by 11% • India Branded Business up by 6% and International Branded Business up by 16% Gross Profit up by 10% EBITDA1 up by 12% PAT up by 22% Cash Generated from Operations up by 149% (Rs. 269 cr vs Rs. 108 cr) Improvement in De
Slide 5: 9M FY20 Performance driven by Branded Revenue Growth and Improved Operational Efficiencies
9M FY20- Performance driven by Branded Revenue Growth and Improved Operational Efficiencies Revenue EBITDA & EBITDA Margin ▪ Revenue up by 2.4% ▪ Gross Profit up by 10% and Gross Profit 12.1% margin improved by c. 186 bps on driven 11.0% by: 2,967 358 ▪ Higher growth of international 2,897 319 brand
Slide 6: Q3FY20 Key Highlights
Q3FY20 Key Highlights Branded Portfolio 76% vs 63% y-o-y • Branded Revenue up by 6% • International Branded Business up by 15% EBITDA1 margin up by 170 bps y-o-y Gross Profit Margin up by 300 bps y-o-y PAT up by 26% y-o-y Debt down by Rs.70 cr y-o-y 1. EBITDA includes impact of Rs. 4.0 crore on acco
Slide 7: Q3FY20 – Continued expansion in Profits
Q3FY20 – Continued expansion in Profits Revenue EBITDA & EBITDA Margin ▪ EBITDA of Rs. 117 cr is higher by 4% and margins have increased by 170 bps on 10.1% 11.7% 11.7% y-o-y ▪ Gross Profit Margins increased by 300 1,117 112 116 117 984 998 bps on y-o-y basis, due to: ▪ Increase in GP Margins in the
Slide 8: Business segment performance
Business segment performance All Figures in Rs Cr unless specified Branded Revenue Private Label Revenue Organic Revenue 646 635 649 364 89 89 90 610 83 80 584 285 196 195 207 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Branded & Private L
Slide 9: Inventory & Working capital
Inventory & Working capital Inventory Days Working capital days 274 Dec-18 Dec-19 264 257 242 273 274 242 216 222 222 214 197 186 62 52 51 35 Inventory Days Payable Days Recievable Days Working Capital Days Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Working Capital Days have redu
Slide 10: Key Financial Ratios
Key Financial Ratios 2.7 Total Debt Long Term Debt 2.3 3.1 Interest Coverage 2.5 2.5 Debt/ Equity 1.3 1.2 1.2 2.1 2.2 1.0 Ratio 0.1 0.1 0.2 0.2 0.2 0.1 FY16 FY17 FY18 9MFY19 FY19 9MFY20 FY16 FY17 FY18 FY19 9MFY20 1.49 1.38 1.43 1.35 4.4 4.0 4.0 3.7 Current Ratio 1.09 3.4 1.03 Debt EBITDA Ratio FY16
Slide 11: Strengthening Strong Brand presence in Q3 FY20
Strengthening Strong Brand presence in Q3 FY20 … 42 mn Impressions for Brown Campaign 21+ mn views in YouTube on Brown Dominating Market Share in Brown Rice Point Of Sale Visibility Category – Extensive Media across Platforms rice variant advertisements Highest Subscriber base in our Category in You
Slide 12: Supported by our focussed advertising and promotional activities
…..Supported by our focussed advertising and promotional activities Snapshot of our campaign Launch of new digital film during Diwali 38 mn + impressions on our digital film during Diwali Daawat Created 12 most Searched Biryani recipes 92 Mn + Reach in YouTube “Iss Diwali mein Farq lao, Kise ki Diwa
Slide 13: Value Added Products – Kari Kari
Value Added Products – Kari Kari Crunchy, light, protein rich and premium rice based snack for guilt free snacking • Kari Kari, a range of delicious and roasted snacks, is targeted to the discerning youth of today who prefer healthier snacking options • Kari Kari was test launched 18 months ago by D
Slide 14: Newly Launched: Daawat Sehat
Newly Launched: Daawat Sehat A range of fortified daily consumption basmati • After the launch of highly successful Daawat Consumer Brown Rice, LT has launched another unique acceptance has product, Daawat Sehat, to meet the health been good and nutritional needs of the consumer • Daawat Sehat is a
Slide 15: Strategic Focus
Strategic Focus GROWTH 01 STRENGTHEN FINANCIAL METRICS 03 02 MARGIN EXPANSION LT Foods Investor Presentation, February 2020 15
Slide 16: Strategic Focus: Growth, Margin Expansion, Strengthen Financial Metrics
Strategic Focus Growth Margin Strengthen Expansion Financial Metrics • Solidify the leadership position in • Increase share of high margin • Improve EBITDA margins by ~ key markets products 50bps - 100bps p.a. • Increase consumer penetration • Manufacturing efficiencies • De-lever the Balance Sheet
Slide 17: LT Foods – At a glance
LT Foods – At a glance 17
Slide 18: 70 year old consumer food company delivering the finest quality rice
70 year old consumer food company delivering the finest quality rice & rice based food brands. Proud producers of organic agri ingredients, supplying them to leading businesses in Europe and the U.S for the past 25 years “DAAWAT” - the flagship brand is the FY19 Financials leading brand in India and
Slide 19: Journey from a bulk rice player to a leading rice-based food company
Journey from a bulk rice player to a leading rice-based food company… Next Stage of Growth Strategic Acquisitions ✓ To become category leader in Focus on Brands and Product Value Chain ✓ Expanded our presence to 65+ countries Foundation ✓ Presence extended to 35+ countries ✓ Launched “Ecolife” in US
Slide 20: Creating Enduring Value
Business Goals Creating Building Deepening Enduring Strong Global Value Brands Presence LT Foods Investor Presentation, February 2020 20
Slide 21: Creating Enduring Value
Creating Enduring Value 21
Slide 22: The opportunity landscape of quality food segment
The opportunity landscape of quality food segment Basmati Organic • India accounts for ~23% of global rice production. India is also one of the • Rising affluence and urbanisation are changing consumption patterns in greatest consumers of rice, (~100 m tonnes in 2018) India • The export of basmati r
Slide 23: Driven by 'Farm to Fork' – our integrated business model
Driven by ‘Farm to Fork’ – our integrated business model… Robust backward integration through partnerships with farmers under Sustainable Rice Production Programs to deliver residue- compliant State-of the-art packaging and Continuous innovation of processes and systems to products. processing facil
Slide 24: Our Integrated Manufacturing facilities
…and our Integrated Manufacturing facilities Sonepat Sonepat Bhopal Amritsar Varpal (Bahalgarh) (Kamaspur) Rice Capacity (TPH) 45 6 (organic rice) 36 6 13 Key products Rice, plain chips, Rice (golden, Organic rice chips seasoning, Rice and creamy, boiled, Raw rice and snack rice/wheat flour, parboil
Slide 25: Perfectly positioned to leverage on the growing opportunity
Perfectly positioned to leverage on the growing opportunity FY19 Revenue Our Business Segments Direct customers Brands share DAAWAT, Royal®, Includes the flagship brand ‘DAAWAT’ & ‘Royal®’ Established Gold Seal Indus Branded (No. 1 in US) channel partners Valley, Rozana, ~59% Business Other brands i
Slide 26: Raising the bar through continuous innovation
Raising the bar through continuous innovation Product Innovation ✓ Two product innovation centres, one in Gurugram, India and one in California, USA, with a team of dedicated research personnel. ✓ In the process of developing additional products to expand its range of convenience foods and develop a
Slide 27: Building Strong Brands
PULAV Building ron . si Strong an oq V S Brands Bs 27
Slide 28: Our strong brands drive superiority in core markets
Our strong brands drive superiority in core markets 26% Market share in India – Rural & Urban 31% Market share in India – Modern Trade By Independent By Economic times Organization 45% Market share of US basmati segment 80+ Countries Present By Reader’s Digest Source : AC Nielsen LT Foods Investor P
Slide 29: Our strong brand portfolio
Our strong brand portfolio Wide range of brands, with an offering for every occasion and every recipe, enabling it to cater to various customer segments, across income groups and channels/geographies The flagship brand, with a Strengthening our position in legacy of over 40 years, Saudi Arabia, UAE
Slide 30: Brand DAAWAT (The Finest)
Brand DAAWAT (The Finest) Leading brand in 80+ countries A legacy of over 40 years • Offering premium quality basmati rice across all points in India and globally. 26%+ share in • Consumer need based product range – recipe branded rice market in India variants such as biryani and pulao, food service
Slide 31: Brand Royal (No. 1 in USA)
Brand Royal® (No. 1 in USA) Largest selling basmati rice brand in the US 45%+ share of the US basmati rice • The brand’s product portfolio consists of Basmati segment rice, Jasmine rice, Arborio rice, wheat flour, and flavoured rice. • Leveraging the brand’s equity and distribution network, to expan
Slide 32: Organic Foods
Organic Foods Organic business is one of the fastest growing segments in LT Foods 21% CAGR between 2015 and • Nature Bio Foods Limited (wholly owned subsidiary), 2019. has emerged as a trustworthy and innovative global leader in providing authentic organic ingredients to the global consumers. 90% of
Slide 33: Deepening Global Presence
Deepening Global Presence 33
Slide 34: Broadening our Footprint Globally
Broadening our Footprint Globally Augmented our capabilities in geographies Presence in over 80+ countries where already present - such as the US and the EU; strengthening our presence through Middle East organic and inorganic routes in other UK; Europe • Brand ‘817 Elephant’ helped geographies like
Slide 35: Shareholding pattern
Shareholding pattern As on December 31, 2019 Other - 37.1% Promoter - 56.2% FPI - 1.6% MF - 5.2% LT Foods Investor Presentation, February 2020 35
Slide 36: Investor Contact
CIN: L74899DL1990PLC041790 Investor Contact Website: http://www.ltgroup.in/ Ms Monika Chawla Jaggia Email - Monika.Jaggia@ltgroup.in Address : Unit-134, 1st Floor, Rectangle-1, Saket District Tel - 0124-3055210 DaawatBasmatiOfficial Centre, Saket, AuthenticRoyalFoods New Delhi-110017 36