LT Foods Limited, a leading player in the rice industry, has reported a robust financial performance for the second quarter. The company's consolidated net profit rose by 10.8% to 1.64 billion rupees, compared to 1.48 billion rupees in the same period last year.

Revenue Growth

The company witnessed a significant increase in its revenue, which grew to 27.66 billion rupees from 21 billion rupees year-over-year, marking a substantial 31.7% growth. This impressive revenue growth underscores LT Foods' strong market position and effective business strategies.

Improved Profitability

LT Foods demonstrated improved profitability metrics for the quarter:

• EBITDA: Increased to 3.09 billion rupees from 2.29 billion rupees in the corresponding quarter of the previous year.
• EBITDA Margin: Improved to 11.19% from 10.89%, indicating enhanced operational efficiency.

Financial Performance Overview

The following table summarizes LT Foods' key financial metrics for the quarter:

Market Position and Outlook

The strong financial results reflect LT Foods' resilient business model and its ability to capitalize on market opportunities. The company's focus on operational excellence and strategic initiatives has contributed to its growth trajectory.

As LT Foods continues to strengthen its market position, investors and industry observers will be watching closely to see if the company can maintain this growth momentum in the coming quarters.

Note: All figures are in Indian Rupees.

LT Foods Limited, a prominent player in the Indian food industry, has made a strategic move to diversify its portfolio by acquiring three European food processing companies for a total consideration of €7.8 million. This acquisition marks LT Foods' entry into the shelf-stable fruits and vegetables business, signaling a significant expansion of its product offerings and geographical reach.

Acquisition Details

LT Foods has executed a Share Purchase Agreement to acquire 100% shareholding in three companies:

1. Global Green Europe Kft.
2. Greenhouse AGRAR Kft.
3. Global Green International (UK) Limited

The acquisition will be carried out through LT Foods Europe Holdings Limited, a subsidiary of LT Foods Limited. The financial structure of the deal is as follows:

The earn-out portion is contingent upon future earnings, demonstrating a performance-based approach to the acquisition.

About the Acquired Entities

The acquired companies specialize in the production and distribution of shelf-stable fruits and vegetables, with operations primarily based in Hungary. Key highlights of their business include:

• Serving over 30 countries across Europe
• Two manufacturing sites spread across 45 hectares in Hungary
• Annual production capacity of 117 million jars and cans
• Workforce of over 170 employees

Their product range includes:

• Sweet corn in cans
• Gherkins in jars
• Silver skin onions in jars
• Sour cherries in jars

Financial Performance

The acquired entities have demonstrated consistent financial performance over the past three years:

Strategic Implications

This acquisition aligns with LT Foods' long-term vision of becoming a more diversified and resilient food company. By entering the processed ambient fruits and vegetables business, LT Foods is expanding its product portfolio and gaining a foothold in the European market.

Regulatory Aspects and Timeline

The completion of the acquisition is subject to FDI clearance in Hungary and is expected to conclude in Q3 FY2025-26. LT Foods has confirmed that this transaction does not fall under related party transactions, and neither the promoter nor the promoter group has any interest in the entities being acquired.

Market Impact

This strategic move by LT Foods is likely to enhance its global presence and diversify its revenue streams. The acquisition provides LT Foods with established manufacturing facilities, a skilled workforce, and access to a wide European customer base, potentially accelerating its growth in the international processed foods market.

As LT Foods integrates these new entities into its operations, investors and industry observers will be keen to see how this expansion impacts the company's overall performance and market position in the coming years.