LT Foods Q2 Profit Dips Despite Revenue Growth
Oct 24, 2024 17:44
LT Foods, owner of Daawat and Royal basmati rice brands, reported a 4.22% drop in Q2 profit due to higher costs despite revenue growth. The company cited global shipping disruptions and the Red Sea crisis as challenges.
Photograph: Ralph Orlowski/Reuters
New Delhi, Oct 24 (PTI) LT Foods, owner of basmati rice brands Daawat and Royal, on Thursday reported a 4.22 per cent drop in net profit for the September 2024 quarter as higher expenses offset revenue growth amid global shipping disruptions.
The company's consolidated net profit fell to Rs 150.61 crore in the second quarter ended September 30 from Rs 157.26 crore a year earlier, according to a regulatory filing.
Its total income rose 7.18 per cent to Rs 2,134.04 crore from Rs 1,991.91 crore a year ago, while expenses climbed to Rs 1,942.91 crore from Rs 1,792.33 crore during the second quarter of the current fiscal.
The company's CEO and Managing Director Ashwani Arora cited the Red Sea crisis as the key challenge but highlighted the company's resilience through expanded distribution networks and brand investments.
The company reported significant market share gains across regions. It reported a 55 per cent market share in North America for the Royal brand, a 30 per cent market share in Northern Europe, 9.8 per cent market share in the Middle East, up 320 basis points.
LT Foods recently entered the Saudi Arabian market and launched Daawat Jasmine Thai Rice in India, becoming the first Indian-origin global FMCG company to introduce international rice varieties domestically.
The company saw strong growth in the Asia-Pacific region, with sales increasing by 71 per cent in Indonesia, 32 per cent in Australia, and 22 per cent in New Zealand.
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