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Yahoo
16-05-2025
- Business
- Yahoo
LT Foods Ltd (BOM:532783) Q4 2025 Earnings Call Highlights: Strong Revenue Growth Amid ...
Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. LT Foods Ltd (BOM:532783) reported a strong quarter with an 8% increase in revenue, reaching INR 2,260 crore, driven by increased sales in the Basmati and specialty rice segments. Gross profit grew by 20%, with gross profit margins expanding by 370 basis points to 36.6%, attributed to favorable input prices. The company has expanded its product portfolio to include ready-to-eat and ready-to-cook meal options, healthy snacks, and organic foods, catering to modern dietary preferences. LT Foods Ltd (BOM:532783) has undertaken major expansion projects in the UK and entered high-potential markets like Saudi Arabia. The company maintains a strong market position in the US with its Royal brand, holding more than 55% market share in both mainstream and ethnic channels. Despite the increase in gross margins, EBITDA margins only saw a marginal increase of 30 basis points, indicating higher operational costs. Logistic costs have impacted margins, with a 1.7% increase, and advertising expenses are expected to rise further. The return on equity decreased from 19.2% in the previous year to 16.8% in the current financial year. The net debt to equity ratio increased from 0.1% to 0.2%, indicating a rise in leverage. The company's growth in Europe was slow, with only a 2% increase in Q4, partly due to the separation of UK operations. Q: Can you explain the discrepancy between the improvement in gross margins and the limited increase in EBITDA margins? A: The CFO explained that the logistics cost increased by 1.7%, advertising expenses rose by 0.4%, and administrative costs went up due to the capitalization of a facility in the UK. These factors contributed to the limited increase in EBITDA margins despite improved gross margins. Q: Are there any expected reversals in the factors affecting margins in FY26? A: The CFO mentioned that logistics costs are expected to normalize, but advertising expenses will increase as the company plans to spend more on consumer-side advertising. Overall, margins are expected to maintain or slightly improve. Q: Can you provide details on the acquisition of Global Green Group and its potential impact? A: The CEO stated that the acquisition involves a canned food business with good synergies. While details will be shared after the definitive agreement is signed, the acquisition is seen as a good opportunity for growth. Q: Why has growth in Europe been slow, and what are the cost percentages of revenue for Q4? A: The CFO clarified that Europe is not slow; the apparent slowdown is due to the separation of UK operations from Europe. The cost as a percentage of revenue for Q4 is 5.8%. Q: How does the company plan to handle potential US tariffs on Indian imports, and what is the impact of a possible US recession? A: The CEO stated that there is no expected impact from US tariffs due to lower material costs. Historically, during recessions, home consumption in the US increases, which could benefit the company. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
ABC News
13-05-2025
- Business
- ABC News
Live moment: NT debt approaching record $14b by 2029 as CLP delivers first budget
The Northern Territory's net debt will reach more than $12 billion next financial year, with the budget forecasting a further increase to nearly $14 billion by 2029. The Country Liberal Party government's first budget has revealed a deteriorating fiscal position for the territory, which has a population of around 255,000 people. The budget shows the government will have to borrow $265 million to fund its day-to-day operations next financial year, and another $101 million in 2026-27. When infrastructure funding and the financial performance of government corporations are added to the bottom line, the government will run a fiscal balance deficit of $1.3 billion in 2025-26. Overall, the NT's net debt will rise from $10.5 billion this financial year, to more than $12 billion in 2025-26. By 2028-29, the net debt is forecast to hit almost $14 billion. NT Treasurer Bill Yan said the budget "puts crime victims first, prioritises law and order and begins the long task of repairing Labor's mess". Big spends include an additional $305 million for the beleaguered Darwin ship lift project, on top of $515 million already budgeted.
