LT Foods Limited · NSE:LTFOODS
LT Foods — Investor Presentation (August 2018)
34 slides from LT Foods's investor presentation, Aug 27, 2018
Slide 1: Corporate Presentation
Corporate Presentation August - 2018
Slide 2: Table of Contents
Table of Contents 1 Introducing LT Foods 2 Pillars of LT’s Growth Story a Cost Efficient Procurement & Modern Milling Facilities b Deep FMCG-style Distribution c Successful Branding d Portfolio Extension e Robust Financials 3 The Future 2
Slide 3: Disclaimer
Disclaimer 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, a
Slide 4: Introducing LT Foods
Introducing LT Foods • Revenue FY 18 – INR 3,650 crore, 5 year CAGR – 10% • 69% of revenue from own brands delivering a 5 year CAGR of 16% • Driving a superior financial performance – EBITDA Margin – 12.5% and PAT Margin – 4.6% • Capturing value addition opportunities extensively across Basmati, Spe
Slide 5: A business with a 80 year history
A business with a 80 year history • Evolution from a rice trader to a leading branded specialty rice Company • Evolution from a B2B Private Label supplier to creating powerful brands • Evolution from a family held to be a publically traded Company • Evolution to a global branded player by creating s
Slide 6: A business with a 80 year history
A business with a 80 year history 1985-1995 2007–2010 Acquired ‘Royal’ brand in US The majority of business was Rabo PE invested equity capital of private label Incorporation of LT Overseas c.$10m Launched four new variants of Ltd Specialist Range of Daawat Basmati Launched ‘Daawat’ bran
Slide 7: Pillars of LT's Growth Story
Pillars of LT’s Growth Story 7
Slide 8: Pillars of LT's Growth Story
Pillars of LT’s Growth Story Cost – efficient Procurement and Modern Milling Facilities Deep FMCG style Robust Financials Distribution Successful Portfolio Extension Branding 8
Slide 9: Cost-efficient Procurement and Modern Milling Facilities
Cost – efficient Procurement and Modern Milling Facilities 9
Slide 10: Cost-Efficient Procurement: The genesis of success
Cost-Efficient Procurement: The genesis of success Attributes of a best-in-class procurement program Network Forecasting Quality focus Consistency One of the largest and best Smart, in-house models to Zero tolerance for poor entrenched networks. Getting the grain right capture demand quality. Scient
Slide 11: Cost-Efficient Procurement: The genesis of success
Cost-Efficient Procurement: The genesis of success Attributes of a best-in-class procurement program Relationships Storage Complete control over maturing process. Nurturing best-practices cultivation Proprietary practices driving consistent for the best ‘Basmati’ output • Alliances with Rallis India
Slide 12: Modern Milling Facilities: The genesis of success
Modern Milling Facilities: The genesis of success Attributes of a best-in-class procurement program Processing Advanced milling & packaging infrastructure. Incorporating global best practices. Continuous reduction in costs through improved efficiencies • 5 integrated and automated facilities with 10
Slide 13: Deep FMCG style Distribution
Deep FMCG style Distribution 13
Slide 14: Deep FMCG style Distribution
Deep FMCG style Distribution Championing Basmati across the world. An emerging, wholesome foods-conglomerate Global reach Network spread Strong international orientation. Catering to Fast Moving Indian Foods Company. local requirements in each market Reach that is second to none • Contribution as at
Slide 15: Deep FMCG style Distribution: Omni-channel
Deep FMCG style Distribution Championing Basmati across the world. An emerging, wholesome foods-conglomerate Omni-channel Engaging seamlessly with institutional and retail consumers • Access to 2,500 modern trade stores. Brown Rice also available in medical chains • Multiple-year relationships with
Slide 16: Successful Branding
: LT Foods Successful Branding
Slide 17: Leading branded specialty rice company
Leading branded specialty rice company “The Finest Basmati” “#1 basmati rice in Other LT Foods America” brands Brand managed by LT Foods More than 30 years history since 2007, and founded in the Growing organic business in B2B Key positioning in premium 80’s segment with emerging brand basma
Slide 18: Growing product portfolio anchored by Daawat and Royal
An extensive and growing product portfolio under the mega brands – Daawat and Royal Basmati rice Organic Organic food Premium Other products Sauté Sauces Health Rice Based Snacks Horeca Mid-price Value Ready-to-Heat & Eat Products Growing product portfolio anchored by “Daawat” and “Royal” followed b
Slide 19: Portfolio Extension
: LT Foods Portfolio Extension
Slide 20: Portfolio Extension: Organic portfolio
Portfolio Extension : Taking LT Foods into the future through value-addition Organic portfolio Offering branded staple foods adhering to strict sourcing and selling requirements. Range also includes spices, nuts, fruits & vegetables B2B orientation. Leader in exports of organic grains Also bui
Slide 21: Portfolio Extension: VAP portfolio
Portfolio Extension : Taking LT Foods into the future through value-addition VAP portfolio Innovative range includes; value added staples, organic RTH rice, fortified rice, sauté sacues, instant rice, rice based snacks and Daawat quick cooking brown rice Established production line in the US for
Slide 22: Robust Financials
: LT Foods Robust Financials
Slide 23: Performance snapshot – As on June 30, 2018
Performance snapshot – As on June 30, 2018 GROWTH 12% 13% Revenues PAT TRANSFORMATION 69% Vs. 66% 1.25x Vs. 2.08x Y-o-Y Y-o-Y Branded Debt- Equity Portfolio Ratio SUSTAINABILITY 18% 25% Branded Revenue Growth International Branded Revenue Growth 23
Slide 24: Financial Snapshot – Q1 FY19
Financial Snapshot – Q1 FY19 Amount in Rs. Crore Revenue Perspective Q1 FY19 Q1 FY18 Growth Branded 587 499 18% Organic Foods 83 81 2.5% Others 183 182 1% Total Revenue 853 762 12% During Q1 FY19: • Branded business has grown across all geographies with a combination of marketing initiatives and dis
Slide 25: Financial Snapshot – Q1 FY19
Financial Snapshot – Q1 FY19 Amount in Rs. Crore Particulars Q1 FY19 Q1 FY18 Growth % FY18 Total Revenue 853 762 12% 3650 Gross Profit 228 241 (6%) 979 Margins 26.7% 31.7% 26.8% EBITDA 106 105 2% 414 Margins 12.5% 13.8% 11.3% PBT 59 55 6% 218 Margins 6.9% 7.3% 6% PAT 40 35 13% 144 Margins 4.6% 4.6%
Slide 26: The Future
: LT Foods The Future
Slide 27: USD 1 billion consolidated revenue target
Creating an attractive branded business investment opportunity USD 1 billion consolidated revenue target Objective is to deliver sustainable growth through strategy Transformation to be led by strong branded Basmati play –supported by Organic, Value Added and Ready to Heat products 27
Slide 28: The Future: Drivers of Revenues
The Future : Delivering sustainable growth by design Drivers of Revenues Expected revenue contribution in coming years Europe EU to show strong traction with new local processing facility 13% 26% 33% India Robust momentum in Basmati sales US in India –branded pie increasing Basmati + RTH to drive 13
Slide 29: Strategy at Work
Strategy at Work Grow India Basmati Business Strengthen Business in the International Markets • Multi-tiered brand architecture across value • Reaching out to Iranian, Asian and bands Middle East population • Adding more products for local diaspora Establish Organic Business Sustainability Globally
Slide 30: The Future: Drivers of Margins
The Future : Delivering sustainable growth by design Drivers of Margins Building scale: Strong planned volume expansion on back of consumer business growth Better head grain yield Procurement/processing efficiencies Premiumisation (USD 3-2-1) strategy to drive gross margin expansion Higher efficienc
Slide 31: The Future: Stronger Balance Sheet
The Future : Delivering sustainable growth by design Stronger Balance Sheet Working Capital – Debt -strategy Capex -strategy rationale • Working Capital Cycle • Dec 2017 QIP –Rs. 200 • Disciplined approach to improve over next crore debt repaid & to building scale few years ~Rs. 200 crore towards •
Slide 32: Shareholding as on June 30, 2018
Shareholding as on June 30, 2018 Promoters FIIs 56.01% 4.07% Top 5 Shareholders SBI 6.00% DSP BLACKROCK 5.20% INDIA AGRI BUSINESS FUND 2.59% RELIANCESMALL CAP FUND 1.66% SOCIETE GENERALE 1.26% MF Others 12.86% 27.06% 32
Slide 33: About LT Foods Limited
About LT Foods Limited LT Foods Ltd. [NSE: DAAWAT, BSE: 532783], is a For further information, please contact: leading consumer-friendly, Indian food Company offering prominent brands aimed at a global customer for Basmati and other Specialty Rice, Organic Foods and Monika Chawla Jaggia Convenience
Slide 34: Thank You
: LT Foods Thank You