LT Foods (LTFOODS) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 consolidated revenue rose 17% year-over-year to INR 2,288 crores, with gross profit up 22% and EBITDA up 7%, though PAT declined 4.7% to INR 145 crores; EPS fell to INR 4.13.

• Nine-month FY25 revenue reached INR 6,510 crores, up 14% year-over-year, with profit after tax at INR 451 crores, driven by brand investments and growth across segments.

• Cash profit for the quarter increased 1% to INR 196 crores; for nine months, up 5% to INR 584 crores.

• Maintained market leadership in key geographies, with 'Royal' holding 55% share in North America and 'Golden Star' as #1 Jasmine rice brand.

• Un-audited financial results for the quarter and nine months ended December 31, 2024, were approved with no material misstatements.

Financial highlights

• Q3 EBITDA margin at 11.5%; nine-month EBITDA margin at 11.9%, down 80 bps year-over-year.

• Gross margin improved by 145 bps to 33.8% for 9M FY25 due to lower input costs; EBITDA margin impacted by higher freight charges.

• Return on capital employed at 19.5% and return on equity at 16.9% for 9M FY25.

• Debt-to-equity ratio steady at 0.3; debt-to-EBITDA improved to 1.2; interest coverage at 10.4x.

• Market capitalization exceeded INR 14,500 crores as of Dec 31, 2024.

Outlook and guidance

• Margin improvement expected in FY26 as freight and procurement cost benefits materialize, especially from Q2.

• Targeting EBITDA growth of 14% over the next four years, with focus on margin expansion, premiumization, and distribution.

• Organic foods segment expected to reach INR 1,000 crores+ annual revenue by FY26, with 10-12% CAGR.

• Ready-to-eat India business targeted to break even by 2027; US segment already profitable.

• Full-year volume growth expected at 12%-13%.