Lt Foods Limited · NSE:LTFOODS
Lt Foods — Q4 FY24 Earnings Presentation
30 slides from Lt Foods's earnings presentation, May 17, 2024
Slide 1: Cover letter to stock exchanges
Ref-LTF/ SE/ 2024-25/ Date: May 17, 2024 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 Dear Si
Slide 2: Investor Presentation Q4 & FY24
LT Foods Limited Nurturing Goodness Investor Presentation Q4 & FY24 May 2024
Slide 3: 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 4: LT Foods at a Glance
LT Foods at a Glance LT Foods is a Global Consumer Food Company which deals in Basmati & Other Specialty Rice, Organic Food & Ingredient business and Ready to eat/Ready to cook segment Power Brands Global Footprint Rs. 7,822 Cr 17% 1 Sustainable Growth 2 3 4-year Powerful Daawat brands like Presence
Slide 5: We are present across globe and still expanding to newer categories
We are present across globe and still expanding to newer categories 50+% 30+% 30+% Market share USA Market share India Market share Northern Europe 25+% 11+% 35+% India International Market share Australia Market share New Zealand Market share Indonesia Global procurement 30% 70% Global manufacturin
Slide 6: Results Highlights
LT Foods Limited Nurturing Goodness Results Highlights 12M & Q4 FY24
Slide 7: Q4 FY24 Financial Highlights
Q4 FY24 Financial Highlights Revenue Gross Profit EBITDA Performance Commentary 14% 13% 25% Revenue up 14% Revenue up 14% y-o-y aided by accelerated brand investments and scaling of distribution in Basmati & 2,092 689 262 Other Specialty Rice segment 609 210 1,835 Q4FY23 Q4FY24 32.9% Gross profit ma
Slide 8: 12M FY24 Financial Highlights
12M FY24 Financial Highlights Revenue Gross Profit EBITDA Performance Commentary 12% 6% 33% Revenue up 12% 7,822 Revenue up 12% y-o-y aided by accelerated brand 988 investments and scaling of distribution in Basmati & 2,544 2,401 Other Specialty Rice segment 744 6,979 FY23 FY24 32.5% Gross profit ma
Slide 9: FY24 Segment Highlights (YoY)
FY24 Segment Highlights (YoY) Basmati & Other Organic Food and Ready to Heat & Ready Specialty Segment Ingredient Segment to Cook Segment % Share 87% 10% 3% Q4FY24 12MFY24 Q4FY24 12MFY24 Q4FY24 12MFY24 Revenue 1,793 6,608 208 724 59 202 Revenue growth% 15% 17% 27% -8% 55% 23% Volume Growth 17% 9% -1
Slide 10: Geography update
Geography update North America India 12% 50%+ 13% 30%+ Revenue growth Market Share Revenue growth Market Share • The Basmati brand ‘Royal’ has grown by 21% as • Build on ‘Daawat’ Brand awareness & penetration and compared to category growth of 17%, our brand Golden Omni-channel Marketing to strength
Slide 11: Geography update
Geography update Middle East Europe 54% 7% 17% 20% Revenue growth Market Share Revenue growth Market Share • Build awareness around DAAWAT® brand positioning • Branded volumes in the Ethnic market grew by 10% “Cook & See the difference” & withstand that across (Revenue Growth of 15%) with growth acr
Slide 12: Improving Working Capital Cycle and KPIs
Improving Working Capital Cycle and KPIs FY 2023-24 FY2022-23 Inventory days 242 245 Trade payable days 85 87 Trade receivable days 32 35 Working capital days 189 193 Return on capital employed 22.0% 17.8% Return on equity 19.2% 18.4% Interest Coverage ratio 10.0 7.4 LT Foods Investor Presentation Q
Slide 13: Marketing updates-India
Marketing updates-India High Impact Digital Campaign 35 Million Views Visibility campaigns across all E- Com platforms Influencer marketing 21 Million impressions 2.5 Million impressions LT Foods Investor Presentation Q4 & Full Year FY24
Slide 14: Marketing updates-International
Marketing updates-International BUILD TOM WITH LOCALISM ON HIGH AFFINITY PLATFORMS INFLUENCER Marketing 10 Million+ views LEVERAGE CELEBS LT Foods Investor Presentation Q4 & Full Year FY24
Slide 15: Important updates
Important updates 1.We have entered five new markets Tanzania, Namibia, Botswana, Zambia, Zimbawe 2.Update on fire insurance claim dated 7 June 2014 Appeal has been filed by insurance company in high court. Court has heard application on admissibility and has reserved the orders. 14 3.Credit rating
Slide 16: Strategy and Outlook
LT Foods Limited Nurturing Goodness Strategy and Outlook
Slide 17: Building capabilities to continue its journey as a high growth global FMCG business
Building capabilities to continue its journey as a high growth global FMCG business Growth Margin Expansion Investing in Capabilities Being Responsible • Solidify our core business • Building economies of • Digital transformation • Embedding ESG in the scale and unlock synergies culture of the organ
Slide 18: Huge opportunity exists in multiple markets for Basmati rice
Huge opportunity exists in multiple markets for Basmati rice FMCG market in India is ~USD 105 Bn, expected to grow at avg. 11% CAGR, driven by 1) increased per capita consumption, 2) increased household penetration and fuelled by improving retail penetration Huge headroom for growth in Basmati rice
Slide 19: Enormous potential lies in our RTE/RTC business
Enormous potential lies in our RTE/RTC business which has grown 6x since FY2020 Convenience Food market to reach $850+ Bn by FY2028 We are addressing long term consumer trends Increased Cross convenience and cultural/Global Discovery and instant taste and exploration gratification experience Our RTE
Slide 20: Marketing initiatives to further strengthen brand recall
Marketing initiatives to further strengthen brand recall in consumer mind-space and gain more market share Strengthening Brand Equity Consumer Engagement for trials Improve market share in India Increase revenue share of NPD to 10% from 2% currently Extend into adjacencies Further strengthen consume
Slide 21: Inorganic Growth Strategy
Inorganic Growth Strategy Past Acquisitions Acquisition Attributes Strengthen presence in existing and newer geographies 2007 2016 Acquired Royal brand in Americas to Acquired 817 Elephant brand to penetrate in the US markets strengthen its presence in Canada. Acquired Indus valley and Rozana brand
Slide 22: Strong levers for margin expansion with a clear path in place
Strong levers for margin expansion with a clear path in place for next phase of growth Compelling growth opportunity both in India and Internationally, expected to achieve EBITDA of 14-15% in next 4 years Margin Expansion Levers Expanding product portfolio and Deepening Distribution and entering pre
Slide 23: Building portfolio to meet diverse needs for all meal occasions
We are building Portfolio to meet diverse needs for all meal occasions Global appeal Simple Convenience Healthier High Breakfast Lunch & Dinner Anytime Snack Weekend/Celebrations On the Go ------------------ Ready to eat and ready to cook meal Basmati rice ------------------ Singles Cuppa rice: Just
Slide 24: Investing in capabilities: Digital transformation
Investing in capabilities: Digital transformation Build Smart & Intelligent Enterprise which can Drive 1.5X ~ 2X Business VALUE LT Foods - Key Objective of Digitalization Enhance Stakeholder Experience People • Enable Revenue Growth Transforma • Create more value to Customer tion • Optimize & Ration
Slide 25: ESG Framework
ESG Framework Responsible Farms | Responsible Sourcing | Responsible Operation | Responsible Brands | Responsible Movement | Responsible Governance | Responsible Value Creation Responsible Farms Responsible Brands Organic Water Stubble Recyclable Plastic Farmland Stewardship Burning Packaging Neutra
Slide 26: SKOCH Award 2024 for sustainable agriculture
We were a proud recipient of the SKOCH Award, 2024 for our efforts towards sustainable agriculture • Our Water Productivity Project (WAPRO) reduced water consumption, increased farmers' income, and improved crop yields in Haryana since its inception in January 2019. • Through the deployment of innov
Slide 27: Capital Allocation Plan
Capital Allocation Plan We aim to balance the objectives of ploughing back earnings to support sustained growth and appropriate reward to shareholders through dividends Growth Dividend/Buyback Utilizing the free cash flow generated for the growth in its Basmati and The Company strives to maintain a
Slide 28: LT Foods: Journey so far
LT Foods: Journey so far Our share of branded business has increased from 69.5% in FY2019 to 78% in FY2024. Net Sales (INR Cr) 9,000 12.2% 12.3% 12.3% 12.9% 12.6% 14.0% 8,000 11.5% 10.8% 11.4% 10.7% 12.0% 7,000 10.0% EBITDA (%) 6,000 5,000 8.0% 4,000 7,822 Revenue (INR Mn) 6,979 6.0% 3,000 4,773 5,4
Slide 29: Shareholding Information
Shareholding Information Fll, 5.14% Shareholder Information Mutual Funds, 3.48% Shareholder Information as on March 31, 2024 as on September 30, 2023 BSE Ticker 532783 NSE Symbol DAAWAT Promoter, 51.00% Market Cap (₹ Cr)* 6,539 Others, 40.38% % Free- float 40.0% Free Float Market Cap (₹Cr) 2,616 Sha
Slide 30: Investor Contact
Ms. Monika Chawla Jaggia Investor Contact Monika.Jaggia@ltgroup.in 0124-3055159 ltgroup.in CIN: L74899DL1990PLC041790 Registered Office Address: Unit-134, 1st Floor, Rectangle-1, Saket District Centre, Saket, New Delhi-110017 Corporate Office Address: 4th Floor, MVL I Park, Sector – 15 Gurugram - 12