LT Foods, a prominent Indian-origin global FMCG company specialising in consumer food products, reported impressive financial results for the first quarter of FY24. During this period, the company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) witnessed a substantial 27 per cent year-on-year (YoY) improvement, amounting to Rs 224 crore. Additionally, the EBITDA margin rose by 167 basis points (bps) YoY to 12.5 per cent, indicating increased operational efficiency.
The company’s Basmati and Other Specialty rice business saw a remarkable 24 per cent YoY growth during Q1 FY24, attributing this success to augmented investments in brand and marketing efforts, which led to a gain in market share. However, the Organic segment faced challenges, experiencing a decline of 31 per cent YoY during the same quarter, compared to Q1 FY23. This decline was a consequence of the imposition of anti-dumping duty on the import of Organic Soya in the U.S.
On the other hand, LT Foods’ Health & Convenience segment, encompassing products like Daawat Sehat on the Health platform, Royal Ready-to-Heat (in the US), Daawat Cuppa Rice, Daawat Sauté Sauces, and Kari Kari (Japanese Rice Snacks), generated revenue of Rs 41 crore in Q1 FY24.
Ashwani Arora, the Managing Director & CEO of LT Foods, expressed his delight over the robust quarterly performance. The company’s top-line growth reached an impressive 10 per cent YoY, accompanied by a remarkable 44 per cent growth in earnings. This success can be attributed to the continuous investments in building strong brands such as Daawat, Royal, and Heritage, along with the expansion of the distribution network.
LT Foods also showcased a significant increase in its market share in India, which rose to 29.8 per cent, marking a consistent upward trend of 210 bps compared to the same period last year. The company’s offtake volume witnessed a remarkable growth of 17.2 per cent in Q1 FY24, surpassing the industry category’s growth rate of 9.0 per cent during the same period, as per the MAT June’23; AC Nielsen Retail Survey Audit.
With a presence in more than 65 countries, including India, the U.S., Europe, the Middle East, the Far East, and other regions, LT Foods has firmly established itself as a leading player in the specialty rice and rice-based foods business.
The company’s achievements in Q1 FY24 demonstrate its commitment to continuous growth through strategic investments in branding, marketing, and distribution. Despite challenges in the Organic segment, LT Foods’ overall performance highlights its strong market presence and its ability to outperform the industry in terms of volume growth, setting a positive trajectory for future success.