Lt Foods Limited · NSE:LTFOODS
Lt Foods — Q1 FY2020 Earnings Presentation
31 slides from Lt Foods's earnings presentation, Aug 8, 2019
Slide 1: Investor Presentation Q1 FY2020
Investor Presentation Q1 FY2020 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: Q1FY20 Financial Performance
Q1FY20 Financial Performance 3
Slide 4: Q1 FY20 Key Highlights
Q1 FY20 Key Highlights Strong revenue growth of 15% y-o-y India business grew by 28% y-o-y; International business grew by 12% y-o-y Gross profit up by 17% y-o-y EBITDA* up by 18% y-o-y * EBITDA includes impact of Rs. 3.89 crore on account of IND AS 116 LT Foods Investor presentation, August 2019 4
Slide 5: Q1FY20 - Strong performance; rebound from Q4FY19
Q1FY20- Strong performance; rebound from Q4FY19 All Figures in Rs Cr unless specified Revenue EBITDA & EBITDA Margin ▪ Revenue growth of 15% y-o-y 140 15% ▪ Gross profit increased by 17% y-o-y and 12.5% 12.8% 1,018 120 8% q-o-q driven by: 985 9.2% 100 10% ▪ Price increase impact in the US 80 853 126
Slide 6: Business segment performance
Business segment performance All Figures in Rs Cr unless specified Branded Revenue Private Label Revenue Organic Revenue 610 646 569 584 364 103 554 89 88 84 88 286 220 196 149 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Branded & Private
Slide 7: Inventory & Working capital
Inventory & Working capital Working capital days Inventory Days Jun-18 Jun-19 257 233 222 214 273 274 241 57 48 216 222 222 214 22 29 196 186 Inventory daysPayables days Receivables Working days capital days Inventory Volume (Th MT) Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Padd
Slide 8: Earnings highlights – Key financial ratios
Earnings highlights – Key financial ratios 2.08 1.92 1.26 1.26 1.25 1.22 1.18 1.06 1.00 Net Debt/ Equity Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 1,318 1,399 1,435 1,472 1,198 1,232 1,267 689 774 Net Worth In Rs Cr Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20
Slide 9: Strategic Focus
Strategic Focus GROWTH • Strengthen Brands in key 01 markets • Widen distribution network • Increase consumer STRENGTHEN FINANCIAL penetration across segments METRICS • De-lever the Balance Sheet • Improvement in Debt to 03 EBITDA ratio • Improve Return Ratios 02 MARGIN EXPANSION • Change in product
Slide 10: LT Foods – At a glance
LT Foods – At a glance 10
Slide 11: LT Foods is a leading rice-based food company
LT Foods is a leading rice-based food company with strong global brands of basmati and other specialty rice, organic foods and rice-based convenience products “DAAWAT” - the flagship brand is the FY19 Financials leading brand in India and 65+ Iconic countries Net Sales Net Profit EBITDA EPS Brands “
Slide 12: Our 50-year journey from a bulk rice player to a leading rice-based food company
Our 50-year journey from a bulk rice player to a leading rice-based food company… Strategic Acquisitions Next Stage of Growth Focus on Brands and Product Value Chain ✓ Expanded our presence to 65+ countries ✓ To become category leader in key Foundation markets ✓ Presence extended to 35+ countries ✓
Slide 13: Creating Enduring Value
Business Goals Creating Building Deepening Enduring Strong Global Value Brands Presence LT Foods Investor presentation, August 2019 13
Slide 14: Creating Enduring Value
Creating Enduring Value 14
Slide 15: The opportunity landscape of quality food segment
The opportunity landscape of quality food segment Basmati Organic • In 2017, India accounted for 23% of global rice production. India is also one • Rising affluence and urbanisation are changing consumption patterns in of the greatest consumers of rice, (97 m tonnes in 2017) India • ‘Basmati’ rice i
Slide 16: 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 17: Our Integrated Manufacturing facilities
…and our Integrated Manufacturing facilities Sonepat Sonepat Bhopal Amritsar Varpal (Bahalgarh) (Kamaspur) Rice Capacity (TPH) 43 5 (organic rice) 35 6 12 Key products Rice, plain chips, Rice (golden, Organic rice chips seasoning, Rice and creamy, boiled, Raw rice and snack rice/wheat flour, parboil
Slide 18: 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 19: Raising the bar through continuous innovation
Raising the bar through continuous innovation Product Innovation ✓ Two product innovation centres, one in Gurugram, India and ✓ ‘DAAWAT Rozana Gold Plus’ - a unique one in California, USA, with a team of dedicated research blend of flavoursome white basmati and personnel. fibre rich Brown Rice. ✓ In
Slide 20: Building Strong Brands
Building Strong Brands 20
Slide 21: Our strong brands drive superiority in core markets
Our strong brands drive superiority in core markets 24% Market share in India – Rural & Urban By Independent By Economic times Organization 29% Market share in India – Modern Trade 45% Market share of US basmati segment By Reader’s Digest Source : AC Nielsen Q1-19 LT Foods Investor presentation, Aug
Slide 22: 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 30 years, Saudi Arabia, UAE
Slide 23: Our market-leading brands in action
Our market-leading brands in action… 4.6+ mn recipe views in YouTube in the last 6 months Highest Subscriber base in our Category in YouTube 2,30,000+ visits to Biryani corner on our Website 1,30,000+ Fan Base in Facebook LT Foods Investor presentation, August 2019 23
Slide 24: Brand DAAWAT (The Finest)
Brand DAAWAT (The Finest) 24%+ share in Leading brand in 65+ countries branded rice A legacy of over 30 years market in India • Offering premium quality basmati rice across all points in India and globally. • Consumer need based product range – recipe variants such as biryani and pulao, food service
Slide 25: 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 26: Organic Foods
Organic Foods Organic business is one of the fastest growing segments in LT Foods 44% CAGR between 2013 and • Nature Bio Foods Limited (wholly owned subsidiary), 2018. has emerged as a trustworthy and innovative global leader in providing authentic organic ingredients to the global consumers. 90% of
Slide 27: Deepening Global Presence
Deepening Global Presence 27
Slide 28: Broadening our Footprint Globally
Broadening our Footprint Globally Augmented our capabilities in geographies Presence in over 65 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 29: Shareholding pattern
Shareholding pattern As on Jun 30, 2019 Other - 34.1% Promoter - 56.2% FPI - 1.4% MF - 8.3% LT Foods Investor presentation, August 2019 29
Slide 30: Board of Directors
Board of Directors LT Foods Investor presentation, August 2019 30
Slide 31: 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 31