LT Foods (LTFOODS) Q1 24/25 earnings summary

Executive summary

• Consolidated revenue for Q1 FY2025 rose 17% year-over-year to INR 2,088 Cr, driven by growth across all segments and brand investments.

• EBITDA increased 15% year-over-year to INR 258 Cr, with an EBITDA margin of 12.4%.

• EPS grew to INR 4.41, and cash profit rose 14% to INR 197 Cr.

• Market share in India stands at 30%, with global leadership in the US (50%+), Northern Europe (30%+), and Australia (25%+); expanded into new geographies including Madagascar and Saudi Arabia.

• Board declared a 2nd interim dividend of Rs. 0.50 per share for FY 2024-25 and approved sale of a loss-making subsidiary.

Financial highlights

• Q1 FY25 revenue was INR 2,088 Cr, up from INR 1,789 Cr in Q1 FY24, a 17% increase year-over-year.

• Gross profit grew 16% year-over-year, though gross margin declined 30 bps to 33.5% due to higher input costs.

• EBITDA margin at 12.4% (down 20 bps year-over-year); PAT rose 13% to INR 155 Cr.

• Return on capital employed improved to 20.8% from 19.4%; return on equity at 17.8%.

• Debt-to-equity ratio reduced to 0.2x from 0.4x; interest coverage ratio increased to 11.6 from 8.6.

Outlook and guidance

• Targeting EBITDA margin of 14-15% over the next four years, leveraging distribution expansion, premiumization, and new product launches.

• Ready-to-Eat and Ready-to-Cook business in India projected to break even by FY2027 at INR 400 Cr revenue, with a CAGR of 33-35% over five years.

• Margin improvement anticipated in FY2026 as commodity prices are expected to decline.

• Plans to scale UK operations to £100 million annual revenue within five years.

• Freight cost pressures from the Red Sea crisis expected to persist for 1–2 more quarters.