Lt Foods Limited · NSE:LTFOODS
Lt Foods — Q2 FY2025 Earnings Presentation
33 slides from Lt Foods's earnings presentation, Oct 25, 2024
Slide 1: Exchange cover letter: Updated Investor Presentation
Ref-LTF/ SE/ 2024-25/ Date: October 25, 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: Updated - Investor Presentation Ref. Code: 532783. Scrip ID:
Slide 2: Investor Presentation H1 & Q2 FY2025
INVESTOR PRESENTATION H1 & Q2 FY2025 24th October 2024 LT Foods Investor Presentation Q2FY25
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 Powerful Daawat brands like Presence in 80+
Slide 5: Results Highlights
Results Highlights H1 & Q2 FY2025 24th October 2024 LT Foods Investor Presentation Q2FY25
Slide 6: H1 FY25 Financial Highlights
H1 FY25 Financial Highlights Revenue Gross Profit EBITDA Performance Commentary 12% 17% 7% Revenue up 12% 4,222 Revenue up 12% yoy aided by accelerated brand 514 1,427 investments and scaling of distribution in Basmati & 3,781 Other Specialty Rice segment with growth in organic 479 1,219 and RTH/RTC
Slide 7: Q2 FY25 Financial Highlights
Q2 FY25 Financial Highlights Revenue Gross Profit EBITDA Performance Commentary 7% 18% 0.4% Revenue up 7% Revenue up 7% yoy aided by accelerated brand investments and scaling of distribution in Basmati & 1,992 Other Specialty Rice segment with growth in organic 2,134 255 256 727 615 and RTH/RTC segm
Slide 8: Improving Working Capital Cycle and KPIs
Improving Working Capital Cycle and KPIs H2 FY25 H2 FY24 Inventory days 194 166 Trade payable days 28 22 Trade receivable days 29 30 Working capital days 195 174 Return on capital employed* 20.8% 21.6% Return on equity 17.2% 19.5% Net Debt 546 569 Interest Coverage ratio 11.1 9.9 * On net debt basis
Slide 9: Segment Update
Segment Update 24th October 2024 LT Foods Investor Presentation Q2FY25
Slide 10: H1 FY25 Segment Highlights (YoY)
H1 FY25 Segment Highlights (YoY) Basmati & Other Organic Food and Ready to Heat & Ready Specialty Segment Ingredient Segment to Cook Segment % Share 87% 11% 2% H1 FY25 Revenue* 3,661 461 100 Revenue growth% 9% 41% 8% Volume Growth 12.8% - - Gross Margin 32% 43% 39% EBITDA Margin 13% 12% -6% *Revenue
Slide 11: Q2 FY25 Segment Highlights (YoY)
Q2 FY25 Segment Highlights (YoY) Basmati & Other Organic Food and Ready to Heat & Ready Specialty Segment Ingredient Segment to Cook Segment % Share 87% 11% 2% Q2 FY25 Revenue* 1,852 238 44 Revenue growth% 4% 49% -15%** Volume Growth 7.3% Gross Margin 33% 45% 42% EBITDA Margin 12% 12% -9% *Revenue i
Slide 12: Geography update: North America and India
Geography update North America India 8% 40% 15% 31% Revenue growth % of total revenue Revenue growth % of total revenue • Our brand Royal has witnessed a significant increase in market • Continued growth in our premium segment Daawat Biryani rice share with market share in basmati segment at 55% wit
Slide 13: Geography update: Europe/UK and Rest of the world
Geography update Europe/UK Rest of the world 18% 17% 7% 12% Revenue growth % of total revenue Revenue growth % of total revenue • We have 30% market share in Northern Europe. • Appointed a distributor for Saudi Arabia market, largest market of basmati rice in the world • The Company expanded its foo
Slide 14: Revamped Organic Food Strategy: Embracing Risk Diversification
Revamped Organic Food Strategy: Embracing Risk Diversification 1 Uganda expansion 3 Revenue expansion Introduction of additional Set up a manufacturing product offerings and the facility in Uganda to exploration of new mitigate the impact from 2 Procurement expansion geographical markets. levy of an
Slide 15: Consistent growth in RTC/RTH
Consistent growth in RTC/RTH Growth propelled by deeper consumer reach and expanded presence in emerging channels 147% 32% 38% Set to accelerate growth further with strong business operating model build with focused efforts on foundational work product, positioning/ placement and agile supply chain.
Slide 16: Quarterly Initiatives
Quarterly Initiatives Q2 FY2025 24th October 2024 LT Foods Investor Presentation Q2FY25
Slide 17: World Biryani Day
Pioneers of culinary celebrations : Proud creators of first ever world biryani day Celebrated World Biryani Day in India, UK, Middle East and Australia 16 Electrifying music Community Brands align Dynamic Rally concert building with Daawat Innovative Tech- AI enabled Star Power campaign LT Foods Inv
Slide 18: New product launches and brand refresh
New product launches and brand refresh As global tastes evolve, LT’s Jasmine 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 Presentation Q2FY25
Slide 19: New product launches and brand refresh
New product launches and brand refresh LT Foods Investor Presentation Q2FY25
Slide 20: Strategic Expansion in Europe: New UK Manufacturing Hub in Harlow, Essex
Strategic Expansion in Europe: New UK Manufacturing Hub Established in Harlow, Essex • LT Foods is set to revolutionize the rice market in the U.K. and meet the growing demand for authentic and premium rice varieties. • The company is expecting annual revenue to the tune of £ 40 million initially, w
Slide 21: Strategy and Outlook
Strategy and Outlook 24th October 2024 LT Foods Investor Presentation Q2FY25
Slide 22: Building capabilities to continue 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 23: 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 24: Enormous potential in 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 25: Marketing initiatives to strengthen brand recall and gain market share
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 through multiple ways of marketing Increase revenue share of NPD to 10% from 2% currently Extend into adj
Slide 26: 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 27: Strong levers for margin expansion
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 28: 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: Ju
Slide 29: 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 30: 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 31: 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 32: Shareholding Information
Shareholding Information Fll, 8.04% Shareholder Information Mutual Funds, 4.65% Shareholder Information as on September 30, 2024 as on September 30, 2023 BSE Ticker 532783 NSE Symbol DAAWAT Promoter, 51.01% Market Cap (₹ Cr)* 14,095 Others, 36.30% % Free- float 40.0% Free Float Market Cap (₹Cr) 5,63
Slide 33: 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