LT Foods (LTFOODS) Q4 18/19 earnings summary

Executive summary

• FY2018-19 consolidated revenue rose 7.7% to ₹3,890 crore; EBITDA increased 1.7% to ₹421 crore, while PAT declined 4.8% to ₹137 crore.

• Branded sales, exports and the US business supported growth; lower gross and EBITDA margins and a decline in EPS tempered results.

• Five-year priorities include building branded business scale, improving procurement and manufacturing efficiency, and growing organic and convenience-food offerings.

Financial highlights

• Consolidated revenue from operations ₹3,890.43 crore, up 7.7%; total income ₹3,914.53 crore, up 7.3% YoY.

• EBITDA ₹421.34 crore, up 1.7%; EBIT ₹352.31 crore, down 3.2%; PBT ₹213.64 crore, down 1.8%; PAT ₹137.47 crore, down 4.8%.

• Gross profit ₹976.37 crore, down 0.2%; cash profit ₹206.49 crore, up 6% YoY.

• Standalone revenue ₹2,210 crore, up 3%; EBITDA ₹183 crore, up 17%; PAT ₹54 crore, up 30% YoY.

Outlook and guidance

• Five-year roadmap targets preferred-brand status across geographies, category leadership in key markets and growth ahead of industry; focus areas include scale, margins, procurement, yields and operating efficiency.

• FY2019-20 plans include commercial production of Kari Kari snacks, a nationwide Daawat Sauté Sauces launch and further development of ready-to-heat and other value-added products.

• Growth priorities include organic foods and value-added products alongside basmati rice; investments in technology, automation and digitalised manufacturing are planned.