Lt Foods Limited · NSE:LTFOODS
Lt Foods — Q2 FY2020 Earnings Presentation
35 slides from Lt Foods's earnings presentation, Nov 7, 2019
Slide 1: Investor Presentation H1 & Q2 FY2020
Investor Presentation H1 & Q2 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: H1 & Q2FY20 Financial Performance
H1 & Q2FY20 Financial Performance 3
Slide 4: H1 FY20 Key Highlights
H1 FY20 Key Highlights Revenue up by 10% Branded Business up by 14% Gross Profit up by 14%; EBITDA1 up by 17% PAT up by 20% Cash Generated from Operations up by 58% (Rs.521 cr vs. Rs.330 cr) Improvement in Debt to EBITDA ratio (2.6x vs. 3.3x) 1. EBITDA includes impact of Rs. 7.74 crore on account of
Slide 5: H1FY20- Strong Growth in Revenue & Profitability
H1FY20- Strong Growth in Revenue & Profitability Revenue EBITDA & EBITDA Margin ▪ Revenue up by 10% y-o-y 11.6% 12.2% 13.0% ▪ Gross Profit up by 14% and Gross 11.0% Profit margin improved by c90 bps on y-o-y driven by: 1970 9.0% 241 ▪ Improved realisation in US 1785 7.0% 206 ▪ Reduced COGS in Europe
Slide 6: Q2 FY20 Key Highlights
Q2 FY20 Key Highlights Revenue up by 6% y-o-y Branded Revenue up by 15% y-o-y Domestic market share up from 24% to 32%1 Gross Profit up by 11% y-o-y EBITDA2 up by 16% y-o-y PAT up by 25% y-o-y Net Debt down by Rs.105 cr y-o-y Reduction in net working capital by 26 days y-o-y 1. As per AC Nielsen mar
Slide 7: Q2FY20- Stable Operational Performance
Q2FY20- Stable Operational Performance Revenue EBITDA & EBITDA Margin ▪ Revenue up by 6% y-o-y 140 12.8% 15% ▪ Gross profit up by 11% and Gross 985 984 120 10.7% 11.7% Profit margin improved by 140 bps on 100 10% y-o-y driven by: 80 126 ▪ Improved realisation in US 932 60 116 40 100 5% ▪ Reduced COG
Slide 8: Business segment performance
Business segment performance All Figures in Rs Cr unless specified Branded Revenue Private Label Revenue Organic Revenue 646 635 610 584 554 103 364 84 88 89 90 286 220 196 196 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Branded & Private
Slide 9: Inventory & Working capital
Inventory & Working capital Working capital days Inventory Days Sep-18 Sep-19 197 186 226 199 273 274 222 222 23 33 52 46 216 214 196 197 186 Inventory daysPayables days Receivables Working days capital days Inventory Volume (Th MT) Paddy Rice Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20
Slide 10: Earnings highlights – Key Financial Ratios
Earnings highlights – Key Financial Ratios 1.92 1.26 1.26 1.25 1.22 1.18 1.03 1.00 Debt/ Equity 0.84 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 1,318 1,399 1,435 1,472 1,510 1,198 1,232 1,267 774 Net Worth In Rs Cr Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 16
Slide 11: Our market-leading brands in action in Q2 FY20
Our market-leading brands in action in Q2 FY20 … 7+ mn views in YouTube on Pulav variant advertisements on YouTube Highest Subscriber base in our Category in YouTube 3,10,000+ visits to Biryani corner on our Website 1,30,000+ Fan Base in Facebook LT Foods Investor presentation, November 2019 11
Slide 12: Supported by our focussed advertising and promotional activities
…..Supported by our focussed advertising and promotional activities Snapshot of our campaign run in South India Launch of new digital film during Diwali 12 mn + views on our digital film during Diwali 36 mn + impressions on our digital film during Diwali “Iss Diwali mein Farq lao, Kise ki Diwali Kha
Slide 13: Strategic Focus
Strategic Focus GROWTH 01 STRENGTHEN FINANCIAL METRICS 03 02 MARGIN EXPANSION LT Foods Investor presentation, November 2019 13
Slide 14: Strategic Focus
Strategic Focus Growth Strengthen Margin 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 15: LT Foods – At a glance
LT Foods – At a glance 15
Slide 16: LT Foods is a leading rice-based food company with strong global brands
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 17: 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 18: Creating Enduring Value
Business Goals Creating Building Deepening Enduring Strong Global Value Brands Presence LT Foods Investor presentation, November 2019 18
Slide 19: Creating Enduring Value
Creating Enduring Value 19
Slide 20: 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 21: 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 22: …and 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 23: 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 24: 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 25: Building Strong Brands
i pAAWAT. \ DAAWAT: PaaaWar Idi js B U I I d I n g “ 3 Darl. ane Strong ~< iD Ji Brands NIN Fou’ 25
Slide 26: Our strong brands drive superiority in core markets
Our strong brands drive superiority in core markets 32% Market share in India – Rural & Urban 43% Market share in India – Modern Trade By Independent By Economic times Organization 45% Market share of US basmati segment 48% Market share in Canada By Reader’s Digest Source : AC Nielsen Q3-19 LT Foods
Slide 27: 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 28: Brand DAAWAT (The Finest)
Brand DAAWAT (The Finest) 32%+ 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 29: 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 30: 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 31: Deepening Global Presence
Deepening Global Presence 31
Slide 32: 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 33: Shareholding pattern
Shareholding pattern As on September 30, 2019 Other - 35.4% Promoter - 56.2% FPI - 1.4% MF - 7.0% LT Foods Investor presentation, November 2019 33
Slide 34: Board of Directors
Board of Directors LT Foods Investor presentation, November 2019 34
Slide 35: 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 35