Lt Foods Limited · NSE:LTFOODS
Lt Foods — Q3 FY21 Earnings Presentation
27 slides from Lt Foods's earnings presentation, Jan 29, 2021
Slide 1: Investor Presentation 9M FY21 & Q3 FY21
Investor Presentation 9M FY21 & Q3 FY21 1
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: Contents
Contents Key Highlights Financial Update Capital Allocation Plan Marketing Initiatives Strategic Focus Shareholding Pattern 3|LT Foods Investor presentation, 9M FY21 & Q3 FY21 3
Slide 4: 9M FY21 Key Highlights
9M FY21 Key Highlights Improvement in Debt to EBITDA Basmati & Other Specialty Gross Profit up by ratio1 (2.2x vs 3.3x) Rice business up by 15% 27% Debt down by Rs. 229cr Organic business up by EBITDA up by 28% ROCE1 improved by 347 bps 67% (16% vs 12.5%) New Products business up EPS up by 67% ROE1
Slide 5: Q3 FY21 Key Highlights (Y-o-Y)
Q3 FY21 Key Highlights (Y-o-Y) Basmati & Other Specialty Gross Profit up by 17% Rice business up by 6% EBITDA up by 18% Organic business up by 35% PAT up by 44% Cash Profit up by 36% New Products business up by 21% 5|LT Foods Investor presentation, 9M FY21 & Q3 FY21 5
Slide 6: Acquisition of 30% stake in Leev, Netherlands
Acquisition of 30% stake in Leev, Netherlands The acquisition of a stake in Leev is in line with long term growth strategy of Nature Bio Foods Ltd.(NBFL) Acquisition Rationale • Leev will have access to 100% organic products grown by NBFL’s network of nearly 60000+ organic farmers, cultivated in 800
Slide 7: Contents
Contents Key Highlights Financial Update Capital Allocation Plan Marketing Initiatives Strategic Focus Shareholding Pattern 7|LT Foods Investor presentation, 9M FY21 & Q3 FY21 7
Slide 8: 9M FY21 – Strong All-Round Growth
9M FY21 – Strong All-Round Growth Revenue EBITDA & EBITDA Margin • Revenue up 19% y-o-y 12.1% 13.1% • Gross Profit Margins increased by 188 bps on y-o-y basis, due to: 3,524 460 2,967 358 • Change in product mix 9M FY20 9M FY21 9M FY20 9M FY21 • Lower input costs Gross Profit & Gross Margin PAT & PA
Slide 9: Q3 FY21 – Stable Operational Performance
Q3 FY21 – Stable Operational Performance • Revenue up by 9% y-o-y Revenue EBITDA & EBITDA Margin • Gross Profit Margins increased by 214 bps on y-o-y basis, due to: 11.7% 13.1% 12.7% • Change in product mix • Lower input cost 1,218 998 1,085 160 • EBITDA higher by 18% and margins have increased by 9
Slide 10: Segment-Wise Revenue Break-Up
Segment-Wise Revenue Break-Up Basmati & Other Organic Business New Product Portfolio Specialty Rice Flagship brands Daawat and Royal Health Segment – Daawat Quick Diversified portfolio comprising of Other global brands such as Indus organic cereal grains, flour, pulses, Cooking Brown rice, D
Slide 11: Basmati & Other Specialty Rice Break-Up
Basmati & Other Specialty Rice Break-Up India Revenue 62 64 62 64 46 322 341 219 315 305 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Revenue (Rs. Cr) Volume (MT '000) International Revenue 70 75 68 59 49 528 697 792 674 599 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Revenue (Rs. Cr) Volume (MT '000) * Q1 FY21 Basmat
Slide 12: Inventory and Working Capital
Inventory and Working Capital Working Capital Days Dec-19 Dec-20 260 • Procurement of Paddy starts in 244 235 231 Q3; this results in increase in inventory in Q3. It starts reducing in subsequent quarters and 34 36 51 41 reaches the lowest level by Q2 Inventory Days Payable Days Recievable Days Work
Slide 13: 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 5.6 2.3 1.7 1.4 1.5 1.3 3.2 1.4 1.2 2.5 2.5 0.9 0.8 2.1 2.2 1.0 1.1 0.1 0.1 0.2 0.1 0.1 0.1 FY16 FY17 FY18 FY19 FY20 9M FY21 FY16 FY17 FY18 FY19 FY20 9M FY21 FY16 FY17 FY1
Slide 14: Global Footprint & Diversified Portfolio
Global Footprint & Diversified Portfolio Our diversified market presence as well as our balanced portfolio, serving a wider consumer audience, positions us to capitalize on emerging opportunities in the consumer food business. 1% 5% 5% 9% 9% 37% 14% FY20 FY20 Revenue by Revenue by geography business
Slide 15: 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 16: Contents
Contents Key Highlights Financial Update Capital Allocation Plan Marketing Initiatives Strategic Focus Shareholding Pattern 16|LT Foods Investor presentation, 9M FY21 & Q3 FY21 16
Slide 17: Capital Allocation Plan
Capital Allocation Plan We aim to balance the objectives of ploughing back earnings to support sustained growth, debt reduction and appropriate reward to shareholders through dividends Growth Utilizing the free cash flow generated for the growth in its Basmati and Organic business along with the new
Slide 18: Contents
Contents Key Highlights Financial Update Capital Allocation Plan Marketing Initiatives Strategic Focus Shareholding Pattern 18|LT Foods Investor presentation, 9M FY21 & Q3 FY21 18
Slide 19: Strengthening Brand Equity for our brand Daawat in Indian Market
Strengthening Brand Equity for our brand Daawat in Indian Market TV Campaign in AP and Telangana Making ‘Out of Home’ Brand Presence Stronger Became market leader in AP with 35% Market Bus Shelters in Delhi share across all Channels & 39.2% market Outdoor activity in Gujarat share in Modern Trade 70
Slide 20: Various Brand Initiative in Digital Space
Various Brand Initiative in Digital Space Influencer Campaign Brown Digital Campaign Digital Advertising Meghna – Food Instagrammer • Digital Film was launched of the year in Delhi NCR with a robust media plan. • Daawat Sehat – A 6 sec bumper advertisement with a clear Message Daawat Sehat is Iron a
Slide 21: Strengthening Brand Equity of our brand Daawat Globally
Strengthening Brand Equity of our brand Daawat Globally Listed at Jumbo, the Dutch Supermarket Daawat Cuppa Rice In-store Middle East special Chain promotion in Middle East festive promotion • Daawat Basmati Rice range is now available at Jumbo, the Dutch supermarket chain across all 660 stores in N
Slide 22: Strengthening Brand Equity of our brand Royal in America
Strengthening Brand Equity of our brand Royal in America Print and Digital Advertising Product Innovation Print Media Digital/Social Launched Royal Brown Launched Royal White Basmati (40lb) Basmati (40lb) Strong social media presence focused on Diwali, Influencer Campaign and the Holidays Total Impr
Slide 23: Contents
Contents Key Highlights Financial Update Capital Allocation Plan Marketing Initiatives Strategic Focus Shareholding Pattern 23|LT Foods Investor presentation, 9M FY21 & Q3 FY21 23
Slide 24: Strategic Focus
Strategic Focus Growth Margin Expansion • Solidify the leadership position in Strengthen key markets • Increase consumer penetration Financial Metrics across segments to grow current • Change in Product Mix market share • Improve EBITDA margins by ~ • Strengthen & widen distribution 50bps - 100bps p
Slide 25: Contents
Contents Key Highlights Financial Update Capital Allocation Plan Marketing Initiatives Strategic Focus Shareholding Pattern 25|LT Foods Investor presentation, 9M FY21 & Q3 FY21 25
Slide 26: Shareholding Pattern
Shareholding Pattern As on December 31, 2020 Others, 38.1% Promoter, 56.8% FII, 1.6% Mutual Funds , 3.5% 26|LT Foods Investor presentation, 9M FY21 & Q3 FY21 26
Slide 27: 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 27