Lt Foods Limited · NSE:LTFOODS
Lt Foods — Q1 FY21 Earnings Presentation
44 slides from Lt Foods's earnings presentation, Jul 30, 2020
Slide 1: Investor Presentation
Investor Presentation July 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: We appreciate the efforts of Health Workers, Team Members, Vendors, Partners and Customers
We appreciate the efforts put in by the Health Workers, our Team Members, our Vendors, our Business Partners and our Customers. 03| LT Foods Investor presentation, July 2020
Slide 4: Q1 FY21 Key Highlights (y-o-y)
Q1 FY21 Key Highlights (y-o-y) Basmati & Other Specialty Gross Profit up by 28% Improvement in Debt to EBITDA ratio1 (2.0x vs 3.0x) Rice business up by 20% EBITDA up by 29% Debt down by Rs. 200 cr Organic business up by 79% EPS up by 85% ROCE1 improved by 410 bps New Products Portfolio up by (18.3%
Slide 5: Q1 FY21 – Delivered another quarter with Strong Operating Performance
Q1 FY21 – Delivered another quarter with Strong Operating Performance Revenue EBITDA & EBITDA Margin • Revenue up 24% y-o-y 12.8% 12.3% 13.3% • Gross Profit Margins increased by 86 bps on y-o-y basis, due to: 1,217 1,221 150 162 985 126 • Change in product mix towards higher margin products Q1FY20 Q
Slide 6: Business Segment Performance
Business Segment Performance Basmati & Other Specialty Rice Segment 134 121 110 109 111 842 831 849 1,039 1,007 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Revenue (Rs. Cr) Volume (MT '000) India International 59 54 62 64 54 70 75 46 51 49 309 266 322 341 211 533 564 528 697 796 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q
Slide 7: Business Segment Performance
Business Segment Performance Organic Segment Revenue (Rs. Cr) Organic Portfolio contributes c.13% to overall revenue 89 90 86 102 160 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 New Product Portfolio Revenue (Rs. Cr) New Product Portfolio contributes c.2% to overall revenue 10 11 12 13 19 Q1FY20 Q2FY20 Q3FY2
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 222 222 214 208 by Q2 197 186 162 • 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 2.7 Total Debt Long Term Debt 5.0 1.5 1.6 2.3 1.4 1.4 3.2 1.3 1.2 2.5 2.5 1.1 0.9 2.2 1.0 0.8 2.1 0.1 0.1 0.2 0.1 0.1 0.1 FY16 FY17 FY18 FY19 FY20 Q1FY21 FY16 FY17 FY18 FY19 FY20 Q1FY21 FY16 FY17 FY18
Slide 10: Maximising Shareholders Wealth by Strategic Focus towards Profitable Growth
Maximising Shareholders Wealth by Strategic Focus towards Profitable Growth Revenue PAT 4,184 CAGR: 9% CAGR: 29% 199 2,979 72 FY16 FY20 FY16 FY20 Growth in revenue is being supported by strengthening the brands, widening distribution network and increasing brand penetration across all consumer segme
Slide 11: New Product Launches
New Product Launches Basmati Rice fortified with Iron, Just add hot water and a full rice meal is Vitamins and Folic Acid ready. Available in 5 variants The Company is expanding its Health Portfolio The Company is expanding its Convenience based on changing consumer needs Portfolio based on changing
Slide 12: Engagement with Audience during COVID-19
Engagement with Audience during COVID-19 Shared different easy to cook recipes with Launch of 4 New TVCs - Zindagi Phir Sajegi with DAAWAT audience World will start healing & there will be laughter, conversations & As people stayed home and aimed to break the happiness, all this will happen over Fir
Slide 13: Engagement with Audience on who would they call for PehliDaawat
Engagement with Audience on who would they call for PehliDaawat Multiple Celebrities shared their own story. More than 35 Lakh views 13| LT Foods Investor presentation, July 2020
Slide 14: Brand visibility across different occasions
Brand visibility across different occasions 14| LT Foods Investor presentation, July 2020
Slide 15: Extensive PR Coverage
Extensive PR Coverage Exchange4Media 4P’s News ET Brand Equity The Hindu Business Line The Hindu Business Line Pitch 15| LT Foods Investor presentation, July 2020
Slide 16: Agility in Converting Challenges into Opportunities
Agility in Converting Challenges into Opportunities Procurement Manufacturing Distribution Sales and Marketing Support Services • Ensured raw material • Unhindered plant • Serviced with low • Developed innovative Go- • Finance – worked to availability at all times operations at all times inventory T
Slide 17: 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 18: 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 19: 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 20: Opportunity Landscape
Opportunity Landscape Region Wise Basmati Rice Market Middle East India Americas 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 le
Slide 21: 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 22: 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 23: 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 24: 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 25: 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 26: India
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 27: India
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 a
Slide 28: India
India Health and Convenience Foods Daawat Quick Daawat Sauté Daawat Cuppa Daawat Sehat Kari Kari Cooking Brown Rice Sauces Rice • First Company to • Launched to meet the • Entered into the Healthy • Just add these sauces to • Recently launched a introduce 15-minute health and nutritional and Premium
Slide 29: Americas
Americas Basmati Rice Business • Present across all channels through its flagship brands Royal - Largest selling Basmati Rice brand in Americas, Daawat and 817 Elephant • Product portfolio consists of Basmati rice, Jasmine rice, Arborio rice, Wheat Flour, and Ready-to-Heat Rice • Present across all
Slide 30: Americas
Americas 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 and pr
Slide 31: Middle East
Middle East Basmati Rice 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 flagship brand ‘Daawat’ well-known brands of the Middle Eastern
Slide 32: Europe
Europe Basmati Rice 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 Germany and Scandinavia nations and consistently growing
Slide 33: Rest of World
Rest of World Basmati Rice 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 marketing and brand building initiatives implemented to s
Slide 34: Organic – The Ingredient Business
Organic – The Ingredient Business 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 a
Slide 35: 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 36: 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 37: Campaigns for different variants basis consumer search & requirement
Campaigns for different variants basis consumer search & requirement 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 media Daawat Creat
Slide 38: 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 39: 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 40: Global Market & Supply Chain Hubs
Global Market & Supply Chain Hubs 40| LT Foods Investor presentation, July 2020
Slide 41: 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 42: Strategic Focus
Strategic Focus Growth • Solidify the leadership position in key Margin Expansion markets Strengthen • Change in Product Mix • Increase consumer penetration across Financial Metrics segments to grow current market share • Efficiencies across • Strengthen & widen distribution network • Improve EBITDA
Slide 43: Shareholding Pattern
Shareholding Pattern As on June 30, 2020 Others, 35.6% Promoter, 56.8% Other DII's, 1.1% FII, 1.4% Mutual Funds , 5.1% 43| LT Foods Investor presentation, July 2020
Slide 44: 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