Lt Foods Limited · NSE:LTFOODS
Lt Foods — Q3 FY2025 Earnings Presentation
40 slides from Lt Foods's earnings presentation, Jan 27, 2025
Slide 1: Cover letter to stock exchanges
Ref-LTF/ SE/ 2024-25/ Date: January 27, 2025 To, BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G, Dalal Street Bandra Kurla Complex, Mumbai- 400001 Bandra (E), Mumbai – 400 051 Sub: Investor Presentation Ref. Code: 532783. Scrip ID: LTFOODS De
Slide 2: Investor Presentation 9M & Q3 FY2025
INVESTOR PRESENTATION 9M & Q3 FY2025 27th January 2025
Slide 3: What Defines Us
What Defines Us LT FOODS INVESTOR PRESENTATION | 9M & Q3 FY25 2
Slide 4: A Legacy Spanning More than 7 Decades
A Legacy Spanning More than 7 Decades 1950-1970s: Foundation 1970-1990s: First Rice Mill and Venture 1990-2010s: Global Expansion 2010s and Beyond: Fuelling the next- into Consumer Business level Growth with Strategic Alliances Founded by Arora Family, started Set up the first rice mill in Bhikhiwin
Slide 5: LT Foods at a Glance
LT Foods at a Glance Most Loved Sustainable Global Legacy Brands Growth Footprint 70+ years of ® (+30% MS); FY24 Revenue: INR 7,822 crs Presence in 80+ Industry experience Royal (+50% MS); [17% CAGR in 4years] countries (from a small trading Elephant 817, Golden FY24 Profit: INR 597 crs (well-entren
Slide 6: Results Highlights
RESULTS HIGHLIGHTS 9M & Q3 FY2025
Slide 7: 9M FY25 Financial Highlights (1/3)
9M FY25 Financial Highlights (1/3) Revenue* Gross Profit EBITDA 6,510 5,730 777 2,202 1,855 726 9MFY24 9MFY25 9MFY24 9MFY25 9MFY24 9MFY25 • accelerated brand investments; • improvement of +145bps • EBITDA up by 7%; • Growth across segments and geographies (from 32.4% to 33.8%) due • % to revenue imp
Slide 8: 9M FY25 Financial Highlights (2/3)
9M FY25 Financial Highlights (2/3) Key Metrics 9M FY24 9M FY25 Higher inventory days on account of strategic paddy procurement, as greater demand is anticipated in key Inventory Days 248 268 markets like the US and India; Trade Payable Days 53 73 Trade Receivable Days 30 32 Working Capital Days 225
Slide 9: 9M FY25 Financial Highlights (3/3)
9M FY25 Financial Highlights (3/3) BASMATI & OTHER ORGANIC FOOD AND SEGMENTS RTH / RTC SPECIALITY RICE INGREDIENT Revenue Share % 87% 11% 2% Revenue (INR in Crs) 5,646 701 143 0.1%*** Revenue Growth % 12%* 36%** (normalised growth @29%) Volume Growth % 14% - - Gross Margin % 32.3% 43.1% 39.9% EBITDA
Slide 10: Q3 FY25 Financial Highlights (1/2)
Q3 FY25 Financial Highlights (1/2) Revenue* Gross Profit EBITDA 2,288 775 1,950 263 636 247 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 • accelerated brand investments; • improvement of +125bps • marginal impact of -110bps • Growth across segments and geographies (from 32.6% to 33.9%) due (12.6% to 11
Slide 11: Q3 FY25 Financial Highlights (2/2)
Q3 FY25 Financial Highlights (2/2) BASMATI & OTHER ORGANIC FOOD AND SEGMENTS RTH / RTC SPECIALITY RICE INGREDIENT Revenue Share % 87% 10% 2% Revenue (INR in Crs) 1,998 240 43 -15%*** Revenue Growth % 17%* 27%** (normalised growth @12%) Volume Growth % 15% Gross Margin % 32.4% 42.6% 41.1% EBITDA Marg
Slide 12: Basmati & Other Speciality Rice
BASMATI & OTHER SPECIALITY RICE Highlights
Slide 13: Expanding Horizons, Maintaining Market Leadership
Expanding Horizons, Maintaining Market Leadership Geographies (9M) India North America Europe + UK RoW Revenue Mix % 34% 39% 15% 12% Revenue Growth % (YoY) 8% 17% - 16% • Town reach expanded • ‘Royal’ commands a • Growth focused on key • Growth driven by by 200+ during the 55% market share; accounts
Slide 14: Organic Foods and Ingredients
ORGANIC FOODS AND INGREDIENTS Highlights
Slide 15: Revamped Organic Foods strategy: Risk Diversification
Revamped Organic Foods strategy: Risk Diversification Rising global demand for health-conscious and sustainable products; Expanding global sourcing capabilities to ensure supply stability; REVENUE UGANDA EXPANSION Increasing operational capabilities in EXPANSION • Manufacturing Europe and the
Slide 16: Ready-to-Heat (RTH) & Ready-to-Cook (RTC)
Ready-to-Heat (RTH) & Ready-to-Cook (RTC) Highlights
Slide 17: Consistent Growth in RTH & RTC Segment (9M FY25)
Consistent Growth in RTH & RTC Segment (9M FY25) Growth set to be accelerated further with a strong business operating model, further strengthened by focused efforts on foundational products, positioning/ placement and agile supply chain. Deeper Expanded presence in Expected CAGR of 33-35% in Consum
Slide 18: Nurturing Goodness Initiatives
NURTURING GOODNESS INITIATIVES 9M & Q3 FY2025
Slide 19: Culinary Celebrations: World Biryani Day
Culinary Celebrations: World Biryani Day Highlights from India, UK, Middle East and Australia LT FOODS INVESTOR PRESENTATION | 9M & Q3 FY25 18
Slide 20: New Product Launch (India) – Jasmine Thai Rice
New Product Launch (India) – Jasmine Thai Rice With evolving taste preferences, LT Foods’ Jasmine Thai Rice is perfectly positioned to capture the growing demand for premium ingredients, catering to India’s rising appetite for international flavours and culinary experiences! LT FOODS INVESTOR PRESEN
Slide 21: Solidifying Our India Presence
Solidifying Our India Presence Launch of 1kg Regional Rice varieties across all the channels LT FOODS INVESTOR PRESENTATION | 9M & Q3 FY25 20
Slide 22: Celebrating the Spirit of India with Festive Campaigns
Celebrating the Spirit of India with Festive Campaigns Durga Puja: 1st of its kind Navratri: 360 campaign ~ On- RICE INSTALLATION of Ground, On Air coverage, In- Goddess Durga in Kolkata show integration & Radio LT FOODS INVESTOR PRESENTATION | 9M & Q3 FY25 21
Slide 23: Aligning our Star Brands with the Real-life Stars
Aligning our Star Brands with the Real-life Stars Digital Campaign featuring 3 Michelin Star Chefs: Campaign ~ Pushpa 2 Gaggan Anand, Himanshu Saini and Atul Kochhar ~ (+3.2cr impressions and +4.5mn views) • Byte from Star Cast • On-pack usage • Outdoor / In-cinema integration • Meet & Greet • Conte
Slide 24: Brand Refresh and New Launches under 'Royal' in US
Brand Refresh and New Launches under ‘Royal’ in US LT FOODS INVESTOR PRESENTATION | 9M & Q3 FY25 23
Slide 25: Focused Marketing Initiatives Across Key Geographies
Focused Marketing Initiatives Across Key Geographies LT FOODS INVESTOR PRESENTATION | 9M & Q3 FY25 24
Slide 26: Bringing closer to its consumers in the UK and Saudi Arabia
Bringing closer to its consumers in the UK and Saudi Arabia We are set to further increase the presence of our power brands, led by ®, in the UK and Saudi Arabian markets, catering to growing demand for authentic and premium rice varieties: United Kingdom: • Rice production capacity of 60,000 tonnes
Slide 27: Strategy & Outlook
STRATEGY & OUTLOOK 9M & Q3 FY2025
Slide 28: Continuing on the high-growth global FMCG business
Continuing on the high-growth global FMCG business MARGIN EXPANSION • Building Economies of Scale • Adding efficiencies across the value chain GROWTH • Driving premiumisation • Further solidifying the CORE business • Widening distribution channel • Expanding product portfolio and entering newer geog
Slide 29: Laying A Clear Path in Place for Future Growth
Laying A Clear Path in Place for Future Growth Compelling growth opportunities across geographies, expected to achieve EBITDA of +14% in the next 4 years Expanding Product Portfolio and Deepening Distribution and Product Premiumisation Identified entering Newer Geographies • Focusing on high margin
Slide 30: Opportunity Landscape for our Core Business
Opportunity Landscape for our Core Business India North America Europe (+UK) Middle East 55% 9.8% Market Share % +30% +20% (Royal® brand) (in premium segment) Basmati Rice Market (est.) (INR in crs.) 24,000+ 6,000+ 6,000+ 30,000+ Expected Industry CAGR 7-9% 10-12% 4-6% 3-4% Indian FMCG market is est
Slide 31: Further strengthening brand recall for increased market share
Further strengthening brand recall for increased market share Strengthening Brand Equity Consumer Engagement For Trials • Improve market share in India • Increase revenue mix of NPD from 2% (currently) to 10% • Extend into adjacencies • Increase consumer acquisition • Further strengthen consumer rea
Slide 32: Innovation: Building a focused Product Portfolio
Innovation: Building a focused Product Portfolio Simple Global Appeal Healthier Convenience High Weekends / Breakfast Lunch & Dinner Anytime Snack On-the-Go Celebrations • RTE / RTC Cuppa Rice: Just Basmati Rice Rice snacks and Meals add hot water crackers Singles • Biryani Kit Organic pulses, • Bas
Slide 33: Investing in Capabilities: Digital Transformation
Investing in Capabilities: Digital Transformation Build a ‘Smart & Intelligent Enterprise’ which can drive 1.5X ~ 2X BUSINESS VALUE • Enhance Stakeholder Experience • Create More Value For The Enable Revenue Growth Customer • Optimize & Rationalize Cost • Enhance Productivity Improved EBITDA • Bring
Slide 34: Capital Allocation Plan
Capital Allocation Plan Our objectives are to plough back earnings to support sustained growth and, appropriately reward shareholders through dividends Growth Dividend / Buyback • Utilizing free cash flow generated for the growth across business • Striving to maintain a steady stream of rewards’ seg
Slide 35: Our Inorganic journey so far
Our Inorganic journey so far 817 Elephant (Canada) & 51% stake to strengthen ‘Golden Star’ is now the #1 Jasmine Indus Valley / Rozana share in the branded rice brand in the US (HUL - Middle East) Jasmine rice market. Acquisition Attributes • Strengthen presence in existing and newer geographies; 20
Slide 36: Our Financial Highlights so far
Our Financial Highlights so far CAGR +12% +15% +25% LT FOODS INVESTOR PRESENTATION | 9M & Q3 FY25 35
Slide 37: Our Value Creation journey so far
Our Value Creation journey so far Market Cap (FY19): CAGR ~ +60% Market Cap (highest): INR 1,250crs INR +14,500crs 31 Dec’24 • Share Price: INR 419 • Branded Rev: 76% Nov’22 • Share Price: INR 120 FY24 SALIC stake sale • Share Price: INR 188 • Branded Rev: 80% *Branded Rice revenue as a % to Total R
Slide 38: Shareholding Information
Shareholding Information Flls: Shareholder Information Mutual Funds: 4.82% 9.35% as on December 31, 2024 BSE Ticker 532783 NSE Symbol LTFOODS Market Capitalisation (₹ Crs)* 14,559 Others: Promoters: 34.81% Free – Float share % 40.0% 51.02% Free Float Market Cap (₹Crs) 5,823 Shares Outstanding (# in
Slide 39: Safe Harbour
SAFE HARBOUR 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 40: Ms. Monika Chawla Jaggia, LT Foods Ltd.
Ms. Monika Chawla Jaggia (Chief Corporate Development Officer) E-mail: monika.Jaggia@ltgroup.in Phone: +91 124-3055101 Website: ltgroup.in LT FOODS LTD. (CIN: L74899DL1990PLC041790) Registered Office Address: Unit-134, 1st Floor, Rectangle-1, Saket District Centre, Saket, New Delhi-110017 Corporate