Lotte India Corporation Limited FY24 result update and notice of scheme of arrangement between Havmor Ice Cream Private Limited and Lotte India Corporation Limited

12 September 2024

Lotte India FY24 Results Update:

• Revenue and Profitability- The company's revenue grew by 13.6%, rising from Rs. 599 cr. in FY23 to Rs. 680 cr. in FY24, driven by increase in sale of choco pie and candies. This led to a significant 1,868.4% increase in profits, from a loss of Rs. 1 cr. in FY23 to profit of Rs. 22 cr. in FY24, which in turn boosted the EPS from Rs. (-1) in FY23 to Rs. 16 in FY24.
• Financial Position- The company's total asset base decreased slightly by 0.8%, from Rs. 886 cr. in FY23 to Rs. 879 cr. in FY24, mainly due to a decrease in cash and cash equivalents owing to reduced deposits with less than 3 months maturity. On the other hand, total equity grew from Rs. 640 cr. in FY23 to Rs. 662 cr. in FY24, driven by an increase in retained earnings driven by higher net profit.
• Future Prospects- Despite challenges in the FMCG industry due to unpredictable weather affecting agricultural output in FY23-24, the company remains optimistic about its future growth. To expand its consumer base and boost consumption, it has introduced new products, Choco Burst and Orange Pie. Additionally, the company has increased its manufacturing capacity to further grow its Choco Pie segment. The company is planning to expand production capacity for its popular Coffy Bite and Coconut Punch candy brands in the near future.
  

Lotte India & Havmor Merger:
The Board of Directors, in their meeting on July 29, 2024, approved the merger of Havmor Ice Cream Private Limited (Transferor) with Lotte India Corporation Limited (Transferee), subject to shareholder and National Company Law Tribunal (NCLT) approval. The merger is expected to boost business synergies by optimizing the supply chain, improving operations, reducing costs, and simplifying statutory and regulatory compliance. The company has submitted the necessary application to the NCLT for this purpose.

Notice of Scheme of Arrangement Between Havmor Ice Cream Private Limited and Lotte India Corporation Limited:

• Notice is hereby given that a Meeting of the Equity Shareholders of the Lotte India Corporation Limited (Transferee Company) will be held for the purpose of their considering, and if thought fit, approving, with or without modification, the proposed Scheme of Arrangement between the Havmor Ice Cream Private Limited (“Transferor Company”) and the Transferee Company and their respective Shareholders and Creditors (“Scheme”) on October 12, 2024 at 02.00 P.M. (IST) at 22b, 2nd Floor, Commerce House – 4, Beside Shell Petrol Pump, Prahaladnagar, Ahmedabad, Gujarat – 380015, registered office of the Company (deemed venue) (“Meeting”).
  •The Equity Shareholders shall have the facility and option of voting on the resolution for approval of the Scheme by casting their votes (a) through e-voting system available at the Meeting to be held virtually on October 12, 2024 at 02.00 P.M. (IST) till the conclusion of the Meeting (“E-voting at the Meeting”); or (b) by remote electronic voting (“Remote e-voting”) during the period as stated below:
  

Remote e-voting period
Commencement of voting	Wednesday, October 09, 2024 at 09:00 A.M. (IST)
End of voting	Friday, October 11, 2024 at 05:00 P.M. (IST)