Lt Foods Limited · NSE:LTFOODS
Lt Foods — Q4 FY20 Earnings Presentation
41 slides from Lt Foods's earnings presentation, May 28, 2020
Slide 1: Investor Presentation May 2020
Investor Presentation May 2020
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: Q4 FY20 Key Highlights (y-o-y)
Q4 FY20 Key Highlights (y-o-y) Branded Revenue Gross Profit up by 29% up by 20% International Branded EBITDA1 up by 54% Business up by 32% Organic Revenue up by PAT up by 167% 15% 1. EBITDA includes impact of Rs. 5.7 Cr on account of IND AS 116 03| LT Foods Investor presentation, May 2020
Slide 4: Q4 FY20 - Strong Growth in Revenue & Profitability
Q4 FY20 - Strong Growth in Revenue & Profitability Revenue EBITDA & EBITDA Margin • Revenue up 20% y-o-y 11.7% 12.3% 9.6% • Gross Profit margin increased by 190 bps on y-o-y basis, due to: 1,217 1,018 150 998 117 • Change in product mix towards higher margin 98 products Q4FY19 Q3FY20 Q4FY20 Q4FY19 Q
Slide 5: FY20 Key Highlights
FY20 Key Highlights Gross Profit up by 14% Branded Portfolio Improvement in Debt to EBITDA 74% vs 69% ratio (2.9x vs 4.0x) EBITDA1 up by 21% Branded Revenue up by 14% Debt down by Rs. 235 cr EPS up by 46% International Branded Business ROCE improved by 230 bps up by 20% (13.6% vs 11.3%) Cash Generat
Slide 6: FY20 - Performance Driven by Branded Revenue Growth and Improved Operational Efficiencies
FY20 - Performance Driven by Branded Revenue Growth and Improved Operational Efficiencies Revenue EBITDA & EBITDA Margin 12.2% • Revenue up by 7% 10.8% • Gross Profit up by 14% and Gross Profit margin improved by c. 174 bps on driven by: 3,915 4,184 509 421 • Higher growth of branded and organic bus
Slide 7: Business Segment Performance
Business Segment Performance Branded Revenue Private Label Revenue Organic Revenue 700 338 102 650 286 646 635 89 89 90 584 200 86 196 195 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Branded & Private Label Volume Branded India Revenue & V
Slide 8: Inventory and Working Capital
Inventory and Working Capital Inventory Days • Procurement of Paddy starts in Q3; this results in increase in inventory in Q3. It starts reducing in 274 242 subsequent quarters and reaches the lowest level 216 222 222 214 208 by Q2 197 186 • Basmati Rice is aged up to 24 months to enhance & intensif
Slide 9: Key Financial Ratios and Other Growth Parameters
Key Financial Ratios and Other Growth Parameters Debt/Equity Interest Coverage Ratio Current Ratio 1.52 2.7 Total Debt Long Term Debt 1.43 2.3 3.2 1.35 2.5 2.5 1.3 2.1 2.2 1.03 1.09 1.2 0.9 0.1 0.1 0.2 0.1 0.1 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Debt EBITDA Rat
Slide 10: Maximising Shareholders Wealth by Strategic Focus towards Profitable Growth
Maximising Shareholders Wealth by Strategic Focus towards Profitable Growth Revenue EBITDA PAT CAGR: 9% 4,184 CAGR: 9% CAGR: 29% 199 509 2,979 363 72 FY16 FY20 FY16 FY20 FY16 FY20 Growth in revenue is being supported by strengthening the brands, widening distribution network and increasing brand pen
Slide 11: Partnership with SALIC to create new growth opportunities
Partnership with SALIC to create new growth opportunities • SALIC (Saudi Agricultural & Livestock Investment Company) acquired stake in Daawat Foods Limited (Subsidiary of LT Foods Ltd) through its subsidiary United Farmers Investment Company LT Foods Limited Parent Company Daawat Foods Limited LT F
Slide 12: Early Action to Minimize COVID-19 Impact and Win in the Post COVID-19 World
Early Action to Minimize COVID- 19 Impact and Win in the Post COVID-19 World Employee Safety Supply Chain, Logistics and Packaging • Have adopted ‘Work from Home’ for all employees • Ensured requisite inventory availability, to meet the consumer needs at all offices across globe • Got regular suppor
Slide 13: Initiatives to Help the Community during COVID-19
Initiatives to Help the Community during COVID-19 • Donated Rice for the needy and migrants workers in collaboration with Chef Vikas Khanna • Obtained requisite permission from Government to arrange for buses and cars to help the migrant workers reach home • Helping daily wage workers with income, f
Slide 14: Who Are We
Who Are We We are a 70-year-old Consumer Food Company delivering the finest quality rice and rice-based food brands, providing taste and nutrition in more than 80 countries. We also produce organic agri ingredients, supplying them to leading businesses in Europe and the US for 25 years. Our product
Slide 15: Milestones In Our Progress
Milestones In Our Progress Expanding Business & Pre 1995- 2015- Geographies 2020- Foundation 1985 2006 2016 • Greenfield onwards • 1950s: Founded operations in by the Globalization Europe, turns EBITDA Focus on B2B Arora Family • Acquired ‘Royal®’ positive in 2018-19 Next Stage of (Private Label) 19
Slide 16: Opportunity Landscape
Opportunity Landscape World of Rice Basmati Rice • Rice is a staple food and one of the most widely consumed grains in the world • India is the largest Basmati rice producer (producing 7 MMT out of the total industry size of 8.5 MMT)1and it continues to • India is one of the biggest producers of ric
Slide 17: Opportunity Landscape: Region Wise Basmati Rice Market
Opportunity Landscape Region Wise Basmati Rice Market Middle East India US Basmati Rice 4.2 0.2 MMT • India is the largest Basmati rice producer, accounting for over MMT 70% of its output in the global basmati rice market Europe Rest of the world 0.4 0.2 MMT 2 MMT MMT LT Foods is one of the leading
Slide 18: Experiencing Changes in Consumption Trends
Experiencing Changes in Consumption Trends Rising disposable income Rapid urbanisation with growing Increasing demand for and global exposure affluence and need for organic products convenience Growing middle class and Increasing spending on premium Digital inclusion and rise increasing brand awaren
Slide 19: Opportunity Landscape: Organic, Health and Convenience foods
Opportunity Landscape: Organic, Health and Convenience foods Organic Food Global Organic Food and Beverages Market (USD bn) • Demand for natural, fresh and locally sourced foods, which 680 are healthier and more wholesome than packaged foods with more shelf life are rising CAGR 17% • 23% expected CA
Slide 20: Driven by Strong Product Portfolio Across Business Segments and Geographies
Driven by Strong Product Portfolio Across Business Segments and Geographies Perfectly positioned across channels to leverage on the growth opportunity
Slide 21: We Are Poised to Grow Across Markets
We Are Poised to Grow Across Markets India Americas Europe Middle East Rest of the world • Indian basmati rice • Americas basmati • European basmati • Middle East • Rest of world’s market rice market is of rice market is of basmati rice basmati rice is of ~2 MMT ~0.2 MMT ~0.4 MMT market is of ~4.2 m
Slide 22: Our Strategies
Our Strategies Consumer need- based product range Formulated channel-wise Strong back-end infrastructure to strategy to grow the business ensure consistent and good quality with dedicated sales force inputs Leveraging strong brand equity Inhouse Integrated Model and robust distribution, to with comp
Slide 23: India: Basmati Rice Business
India Basmati Rice Business • Flagship Basmati Rice brand in India, offering premium quality Basmati Rice across all price points in India • Portfolio consists of DAAWAT, Heritage, Rozana, Chef Secretz among others • Present across all channels such as General Trade, Modern Trade, HORECA, E-Commerce
Slide 24: India: Regional Rice
India Regional Rice • Leveraging strong brand equity of brand "Daawat" and robust distribution ventured into the Regional Rice category • Product Portfolio includes - Sona Masoori, Lachkari Wada Kolam • Getting positive response from the market • Launched in a few cities and across channels such as
Slide 25: India: Health and Convenience Foods
India Health and Convenience Foods Daawat Quick Cooking Daawat Sehat Kari Kari Daawat Sauté Sauces Brown Rice • First Company to introduce 15- • Launched to meet the health • Entered into the Healthy and • Just add these sauces to cooked minute Quick Cooking Brown and nutritional needs of the Premiu
Slide 26: North America: Basmati Rice Business
North America Basmati Rice Business • Present in Branded and Private Label Basmati business • Present across all channels through its flagship brands Royal - Largest selling Basmati Rice brand in North America, Daawat and 817 Elephant • Product portfolio consists of Basmati rice, Jasmine rice, Arbor
Slide 27: North America: Organic, Health and Convenience
North America Organic • Leveraging the back-end strength from India and the distribution channel of "Royal" started selling organic products under brand "EcoLife". • Also, selling organic ingredients to major organic food companies Health and Convenience Products • Based on changing consumer needs a
Slide 28: Middle East
Middle East Basmati Rice Business • Present in Branded and Private Label Basmati business • 10% market share in Premium Basmati segment • Present across all channels - Modern Trade, Self Service, Traditional Trade and Food Service across all price points through our and acquired brands • Our flagshi
Slide 29: Europe
Europe Basmati Rice Business • Present in Branded and Private Label Basmati business • Set up a manufacturing Facility in Europe in 2017 which currently running at full capacity • Present across all channels across all price points through our flagship brand ‘Daawat’ • Strong strategic presence in G
Slide 30: Rest of World
Rest of World Basmati Rice Business • Present in Branded and Private Label Basmati business • Present across more than 80 countries through flagship brands ‘Daawat’, Heritage and Devaaya • Consistently filling the portfolio gaps by launching new products based on changing consumer trends • Various m
Slide 31: Organic
Organic Nature Bio Foods Limited (LT’s subsidiary), has emerged as a trustworthy and innovative global leader in providing authentic organic ingredients to the global consumers Marquee Organic Ingredient Buyers Range includes rice, pulses, oil seeds, cereal grains, spices and nuts Ingredient busines
Slide 32: Bespoke Online and Offline Marketing
Bespoke Online and Offline Marketing India International • Master Chef Sanjeev Kapoor continues to be • Multicultural channel catering to core associated with the brand basmati rice consumers such as the South Asian, Arabic and Persian diaspora • Bollywood actress and fitness expert Shilpa Shetty go
Slide 33: Growing Brand Equity
Growing Brand Equity Launch of New Television New Campaign Launched in South India Diwali Digital Film Campaign 4500 TV Spots in 4 months Campaign in “Iss Diwali mein Farq lao, Kise ki 7600 TV Spots in 2 months Campaign all key Channels & also did Digital Diwali Khas Banao” in all key Channels Campa
Slide 34: Daawat offers consumer variants for their specific recipes
Daawat offers consumer, variants for their specific recipes which are all promoted Biryani Dedicated Traditional Rice Promotion of newly Campaign on Social Daawat Brown Rice Campaign Digital Campaign launched – Daawat Sehat Media Reaching potential users by targeting on Across print and digital medi
Slide 35: Leveraging our Integrated Operations and Global Supply Chain Network
Leveraging our Integrated Operations and Global Supply Chain Network Fully integrated Organization having complete control over the entire value chain and strategic location of our manufacturing facilities close to procurement areas helping us to strategize our growth plans effectively
Slide 36: Integrated Farm-to-fork Business Model
Integrated Farm-to-fork Business Model • Robust backward integration through partnerships with farmers Sustainable under Sustainable Rice Production (SRP) Programs to deliver 5,000+ 60,000+ acres farming residue-compliant products. farmers associated under growing residue • Agri extension team suppo
Slide 37: Global Market & Supply Chain Hubs
Global Market & Supply Chain Hubs 37| LT Foods Investor presentation, May 2020
Slide 38: Key Takeaways
Key Takeaways A strong back- A strong and LT Foods is a 70 Company has A sustainable and end infrastructure vibrant branded year old an Integrated profitable business to ensure product Consumer Food Model with model with strong consistent and portfolio that is Company with complete financial metrics
Slide 39: Strategic Focus
Strategic Focus Growth Margin Expansion • Solidify the leadership position in key markets Strengthen • Change in Product Mix • Increase consumer penetration across Financial Metrics segments to grow current market share • Improve EBITDA • Efficiencies across value • Strengthen & widen distribution n
Slide 40: Shareholding Pattern
Shareholding Pattern As on March 31, 2020 Other, 35.5% Promoter, 56.8% Other DII's, 1.3% FII, 1.4% Mutual Funds , 5.1% 40| LT Foods Investor presentation, May 2020
Slide 41: 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