Lt Foods Limited · NSE:LTFOODS
Lt Foods — Q1 FY25 Earnings Presentation
31 slides from Lt Foods's earnings presentation, Jul 25, 2024
Slide 1: Cover letter to stock exchanges
Ref-LTF/ SE/ 2024-25/ Date: July 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: Investor Presentation Ref. Code: 532783. Scrip ID: LTFOODS Dear S
Slide 2: Investor Presentation Q1 & FY25
LT Foods Limited Nurturing Goodness Investor Presentation Q1 & FY25 July 2024 LT Foods Investor Presentation Q1FY25
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 Q1 FY25 LT Foods Investor Presentation Q1FY25
Slide 7: Q1 FY25 Financial Highlights
Q1 FY25 Financial Highlights Revenue Gross Profit EBITDA Performance Commentary 17% 16% 15% Revenue up 17% Revenue up 17% yoy aided by accelerated brand investments and scaling of distribution in Basmati & 1,789 Other Specialty Rice segment with growth in organic 2,088 700 258 604 and RTH/RTC segmen
Slide 8: Improving Working Capital Cycle and KPIs
Improving Working Capital Cycle and KPIs Q1FY25 Q1FY24 Inventory days 218 230 Trade payable days 50 51 Trade receivable days 34 31 Working capital days 202 210 Return on capital employed 20.8% 19.4% Return on equity 17.8% 19.2% Interest Coverage ratio 11.6 8.6 LT Foods Investor Presentation Q1FY25
Slide 9: Quarterly Segment updates
LT Foods Limited Nurturing Goodness Quarterly Segment updates Q1 FY25 LT Foods Investor Presentation Q1FY25
Slide 10: Q1FY25 Segment Highlights (YoY)
Q1FY25 Segment Highlights (YoY) Basmati & Other Organic Food and Ready to Heat & Ready Specialty Segment Ingredient Segment to Cook Segment % Share 87% 10% 3% Q1FY25 Q1FY25 Q1FY25 Revenue 1,811 222 56 Revenue growth% 14.4% 33.6% 37.2% Volume Growth 16.1% 34.2% 37.2% Gross Margin 32.4% 41.8% 36.9% EB
Slide 11: Basmati and Specialty rice: Expanding Horizons While Maintaining Market Leadership
Basmati and Specialty rice:Expanding Horizons While Maintaining Market Leadership North America India 21% 39% 14% 31% Revenue growth % of total revenue Revenue growth % of total revenue • The Basmati brand ‘Royal’ has grown by 21%, outpacing the • Build on ‘Daawat’ Brand awareness & penetration and
Slide 12: Basmati and Specialty rice: Expanding Horizons While Maintaining Market Leadership
Basmati and Specialty rice: Expanding Horizons While Maintaining Market Leadership Europe Rest of the world 11% 17% 20% 13% 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 ma
Slide 13: Revamped Organic Food Strategy: Embracing Risk Diversification
Revamped Organic Food Strategy: Embracing Risk Diversification 1 Uganda expansion 3 Revenue expansion Setting up a manufacturing Introduction of additional facility in Uganda to product offerings and the mitigate the potential exploration of new impact from levy of anti- dumping duty on the 2 Procur
Slide 14: Our RTC/RTH has Grown almost 2x vs LY
Our RTC/RTH has Grow almost 2x vs LY Growth propelled by deeper consumer reach and expanded presence in emerging channels 276% 52% 67% Set to accelerate growth further with strong business operating model build with focused efforts on foundational work product, positioning/ placement and agile suppl
Slide 15: Quarterly Initiatives
LT Foods Limited Nurturing Goodness Quarterly Initiatives Q1 FY25 LT Foods Investor Presentation Q1FY25
Slide 16: Pioneers of culinary celebrations: first ever 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 15 Electrifying music Community Brands align Dynamic Rally concert building with Daawat Innovative Tech- AI enabled Star Power campaign LT Foods Inv
Slide 17: New Innovation Launch Brand Refresh
Royal: New Q1launches product Key Marketing initiatives: and brand refresh Brand Refresh, Innovation launches & Cricket execution New Innovation Launch Brand Refresh Royal® Biryani Kits, 2lb Organic, RTH Lemon Garlic & Herb, Royal® 5lb, RTH Range RTH Brown Basmati & Quinoa LT Foods Investor Presenta
Slide 18: 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 19: Strategy and Outlook
LT Foods Limited Nurturing Goodness Strategy and Outlook
Slide 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: We are 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 27: 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 28: 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 29: 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 30: Shareholding Information
Shareholding Information Fll, 5.88% Shareholder Information Mutual Funds, 4.60% Shareholder Information as on June 30, 2024 as on September 30, 2023 BSE Ticker 532783 NSE Symbol DAAWAT Promoter, 51.01% Market Cap (₹ Cr)* 8,917 Others, 38.51% % Free- float 40.0% Free Float Market Cap (₹Cr) 3,567 Shar
Slide 31: Ms. Monika Chawla Jaggia, 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