LT Foods (LTFOODS) Q4 21/22 earnings summary

Executive summary

• FY22 consolidated revenue rose 14% to ₹5,451 crore; gross profit increased 14% to ₹1,836 crore, while PAT grew 7% to ₹309 crore.

• Growth spanned Basmati and Other Specialty Rice, Organic Food and Ingredients, and Convenience and Health; revenue growth and margin expansion remained strategic priorities.

• India contributed 32% of sales and international markets 68%; the portfolio reached 60+ countries.

Financial highlights

• Revenue from operations ₹5,451 crore vs ₹4,773 crore YoY; gross profit ₹1,836 crore vs ₹1,608 crore, with gross margin of 33.7%.

• EBITDA rose 4% to ₹620 crore from ₹598 crore; PAT rose 7% to ₹309 crore from ₹289 crore; PBT increased 6.5% to ₹428 crore.

• EPS was ₹9.13, up 7%; consolidated cash profit was ₹432 crore, up 9%.

• Freight costs increased 180 bps and brand investment rose 50 bps; normalized EBITDA margin, excluding increased freight cost, was 13.6% vs 12.5% YoY.

Outlook and guidance

• Targeting a more than US$1 billion business within three years; Convenience and Health is targeted to contribute 10% of revenue in five years.

• Priorities include profitable growth, margin expansion, premiumisation, portfolio innovation, wider distribution, digitalisation, HR transformation and ESG.

• Plans to expand globally through organic, inorganic and greenfield routes, focusing on politically stable markets and higher-margin products.