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 due to lower JV/associate profits and higher freight costs.

• Nine-month FY25 revenue grew 14% to INR 6,510 crores, with PAT up 1% to INR 451 crores, supported by strong brand investments and growth across segments and geographies.

• Board approved a 4th interim dividend of Rs. 0.50 per equity share for FY 2024-25, with a record date of February 4, 2025.

• Un-audited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were approved and reviewed by statutory auditors, with no material misstatements identified.

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

Financial highlights

• Gross margin for 9M FY25 improved by 145 bps to 33.8% due to lower input costs; EBITDA margin for nine months at 11.9%, down 80 bps year-over-year.

• Cash profit for Q3 up 1% to INR 196 crores; nine-month cash profit up 5% to INR 584 crores.

• 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 stable at 10.4x.

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

Outlook and guidance

• Expectation of freight cost normalization and margin improvement from Q2 FY26.

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

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

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

• Ready-to-eat India business targeted to break even by 2027.