LT Foods (LTFOODS) Q4 17/18 earnings summary

Executive summary

• FY2018 delivered 11% revenue growth, with branded business growth and overseas expansion supporting the shift toward a global branded specialty-food model.

• The 2022 revenue ambition is $1 billion, supported by branded basmati, organic foods, value-added products, and new European and US facilities.

Financial highlights

• Consolidated revenue was ₹3,650 crore, up 11% YoY; gross profit rose 11% to ₹979 crore.

• EBITDA was ₹414 crore, up 2% YoY; EBITDA margin was 11.3% vs 12.3%. Normalised EBITDA margin, excluding international expansion investment and currency fluctuation, was 12.6%.

• Profit after tax was ₹144 crore, up 12% YoY; EPS rose 9% to ₹4.80 on a fully diluted, stock-split-adjusted basis.

Outlook and guidance

• Revenue target is $1 billion by 2022; growth drivers include branded basmati, organic sales, acquired brands, and traction from European and US facilities.

• Medium- to long-term strategy targets value-added rice adjacencies at 30% of business, while increasing core branded sales and reducing trading exposure.

• Further profitability and cash-flow improvement is expected, alongside investment in branding and market expansion in Europe.