LT Foods Limited · NSE:LTFOODS
LT Foods — Investor Presentation (September 2018)
28 slides from LT Foods's investor presentation, Sep 25, 2018
Slide 1: LT Foods Investor Presentation September 2018
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Slide 2: LT Foods – An Introduction
LT Foods – An Introduction LT Foods is a Global Consumer Specialty Company with a focus on Specialty Rice - Basmati, Organic Foods and Rice based Convenience Products 2
Slide 3: LT Foods – Financial Snapshot
LT Foods – Financial Snapshot • Revenue financial year 2018 – Rs. 3,650 crore [5 Year CAGR - 10%] • 69% of revenue from own brands [5 Year CAGR - 16%] • Driving a superior financial performance [EBITDA Margin – 12.5% PAT Margin – 4.6%] 3
Slide 4: A Business with an 80 Year History
A Business with a 80 Year History Evolution from just a rice trader to a leading player in specialty “Fully Integrated” rice space with an end-to-end control on value chain Evolution from rice trader to a leading consumer specialty rice “Sustainable” business Evolution from a B2B to B2C player with
Slide 5: Pillars of LT's Growth Story
LT Foods Pillars of LT’s Growth Story
Slide 6: Pillars of LT's Growth Story
Pillars of LT’s Growth Story Cost – efficient Procurement and Modern Milling Facilities Deep FMCG style The Future Distribution Successful Portfolio Extension Branding 6
Slide 7: Cost-Efficient Procurement and Modern Milling Facilities
Cost – Efficient Procurement and Modern Milling Facilities
Slide 8: 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 Zero tolerance for poor entrenched networks. Smart, in-house models to Getting the grain right every quality. Scientific f
Slide 9: 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 In
Slide 10: 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 11: Deep FMCG-Style Distribution
Deep FMCG – Style Distribution
Slide 12: 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 in FY
Slide 13: 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 14: Successful Branding
LT Foods Successful Branding
Slide 15: Leading Consumer Specialty Rice Business
Leading Consumer Specialty Rice Business “The Finest Basmati” “#1 Basmati Rice in America” Portfolio of Brands More than 35 years history Brand managed by LT Foods Growing organic business in since 2007, and founded in B2B segment with emerging Leading brand in India the 80’s brand presence
Slide 16: Powerful Brand Portfolio
Powerful Brand Portfolio Basmati rice Organic Premium Organic Food Future Products Sauté Sauces Health Rice Based Snacks HORECA Mid-Price Value Ready-to-Heat Products Growing product portfolio anchored by “Daawat” and “Royal” followed by rice based convenience products 16
Slide 17: Portfolio Extension
LT Foods Portfolio Extension
Slide 18: Portfolio Extension: Taking LT Foods into the Future through Value-Addition
Portfolio Extension : Taking LT Foods into the Future through Value-Addition • Currently contributing 10% to overall revenue, growing at a 5 Year CAGR of more than 40% • Direct relationship with 80,000 farmers, accounting for 12.4% of total organic farmers in India • Covering 15 states and 116,000 h
Slide 19: Portfolio Extension: Value-Added Products
Portfolio Extension : Taking LT Foods into the Future through Value-Addition VAP portfolio Innovative product Quick Cooking Brown Rice growing at a 5 Year CAGR of more than 50% Recently launched “Daawat Rozana Gold Plus” Launched Daawat Sauté Sauces to offer convenience to consumers Establis
Slide 20: The Future
LT Foods The Future
Slide 21: Leading branded specialty food company in over 65 countries
1. GROWTH AND PROFITS 2013 – 2018: 2. BRANDS AND INTERNATIONALIZATION 3. CULTURE AND ORGANIZATION c.45% market Europe / RoW share Gaining share c.35% market share in premium c.28% overall Middle East Gaining share Australia One of the leaders in premium basmati rice market Leading branded specialty
Slide 22: Drivers of Revenues – FY18-22
Drivers of Revenues – FY18 - 22 Expected revenue contribution FY 22 Europe Daawat 13% Relaunch 26% Pvt Label 33% India US Daawat Basmati + 13% NPD RTH + CAGR 16% Organic Rest of World CAGR 18% Organic 15% CAGR 21% 22
Slide 23: Drivers of Margin
Drivers of Margin Building scale: Operating leverage Manufacturing Yield Improvement and Efficiencies to reduce COGS Procurement efficiencies Premiumisation to drive gross margin expansion Higher efficiencies in operating expenses Increase in absolute profitability to precede expansion in margins 23
Slide 24: Quarterly Update
LT Foods Quarterly Update
Slide 25: 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 25
Slide 26: 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 27: Financial Snapshot – Q1 FY19
Financial Snapshot – Q1 FY19 Amount in Rs. Crore Particulars Q1 FY19 Q1 FY18 Growth % FY18 Total Revenue 853 762 12% 3,650 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 28: Thanks
Thanks