Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q2 2020 Earnings Presentation
21 slides from Varun Beverages's earnings presentation, Aug 4, 2020
Slide 1: Exchange filing cover letter
corp VRRUH BEVERAGES LffTlICED © Corporate Off : Plot No.31, Institutional Area, Sec.-44, Gurgaon, Haryana-122002 (India) Ph.: +91-124-4643100-500 • Fax: +91-124-4643303/04 E-mail : info@rjcorp.in • Visit us a t : www.varunpepsi.com CIN No. : L74899DL1995PLC069839 August 4, 2020 To BSE Limited Natio
Slide 2: Q2&H1 CY 2020 Results Presentation
August 04, 2020 (a PepsiCo franchisee) Varun Beverages Limited Q2&H1 CY 2020 Results Presentation
Slide 3: Disclaimer
Disclaimer (a PepsiCo franchisee) This presentation has been prepared by Varun Beverages Limited (the “Company”) for general information purposes only and does not constitute any recommendation or form part of any offer or invitation, directly or indirectly, in any manner, or inducement to sell or i
Slide 4: Table of Content
Table of Content (a PepsiCo franchisee) 1 Company Overview 2 Chairman’s Message 3 Q2&H1 CY 2020 Results Overview 4 Sustainability 5 Performance Highlights 3
Slide 5: Company Snapshot
Company Snapshot (a PepsiCo franchisee) Key player in the beverage industry Operations spanning across 6 countries – 3 in the Indian Subcontinent (India, Sri Lanka, Nepal) contribute ~85% to revenues; 3 in Africa (Morocco, Zambia, Zimbabwe) contribute ~15% for fiscal year 2019 Over 28 years strategi
Slide 6: Brands licensed to VBL
Brands licensed to VBL (a PepsiCo franchisee) Brands licensed by PepsiCo: Dairy Based Drinks * Carbonated Soft Drinks Mango Shake Carbonated Juice Based Drinks Energy Drink Club Soda Ice Tea Cold Fruit Pulp / Juice Based Drinks Coffee Sports Drink Packaged Water Belgian Choco Shake * Note: “Creambel
Slide 7: Key Player in the Beverage Industry – Business Model
Key Player in the Beverage Industry – Business Model (a PepsiCo franchisee) VBL- END-TO-END EXECUTION ACROSS VALUE CHAIN MANUFACTURING Concentrate Other Raw (PepsiCo) Materials Bottling 37 state-of-the-art production facilities SOLID INRASTRUCTURE 90+ depots DISTRUBUTION & WAREHOUSING 2,500+ o
Slide 8: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL – Demand Delivery PepsiCo – Demand Creation 28 yrs + Production Facilities Association Trademarks Sales & Distribution – GTM & Logistics Formulation through Concentrate In-outlet Management – Visi-Coolers Product & Packaging
Slide 9: Chairman's Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q2&H1 CY 2020, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said, “The quarter started amidst an uncertain and unpredictable operating environment with the proliferation of COVID-19 pandemic leading to multiple lock
Slide 10: Key Developments
Key Developments (a PepsiCo franchisee) COVID-19 update: • The Company is taking all recommended precautions in its operations against the COVID-19 infection by following government directions from time to time. • Due to the spread of COVID-19, volumes got severely impacted since Janta curfew of 22n
Slide 11: Performance Highlights (Q2&H1 CY 2020 and CY 2019)
Performance Highlights (Q2&H1 CY 2020 and CY 2019) (a PepsiCo franchisee) Net Sales (20.5%) EBITDA (35.5%) PAT (54.4%) 10,063 4,450 41,696 (52.1%) 4,050 (64.7%) (41.6%) Rs. million Rs. million Rs. million 33,166 7,879 28,105 6,489 24.1% 2,030 16,402 28.0% 3,777 1,430 19.6% 23.0% Q2 2019 Q2 2020 H1 2
Slide 12: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q2 2020 Q2 2019 YoY(%) H1 2020 H1 2019 YoY (%) 1. Income (a) Revenue from operations 16,656.9 28,514.6 -41.6% 33,649.4 42,320.7 -20.5% (b) Excise Duty 255.1 410.1 -37.8% 483.2 624.7 -22.6% Net Revenues 16,401.83 28
Slide 13: Balance Sheet
Balance Sheet (a PepsiCo franchisee) Particulars (Rs. million) 30-Jun-20 31-Dec-19 30-Jun-19 Particulars (Rs. million) 30-Jun-20 31-Dec-19 30-Jun-19 Equity and liabilities Assets Equity Non-current assets (a) Equity share capital 2,886.89 2,886.89 1,826.55 58,793.39 58,925.03 59,477.27 (b) Other equ
Slide 14: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Net Revenues / Sales Volumes • Total sales volumes were down 46.4% YoY at 104.8 million cases in Q2 2020 as compared to 195.5 million cases in Q2 2019. Sales volumes in India were down 48.2% YoY at 88.8 million cases in Q2 2020
Slide 15: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Debt / Credit Rating • Net debt stood at Rs. 29,392 million as on June 30, 2020 as against Rs. 32,461 million as on December 31, 2019. Debt : Equity ratio stood at 0.84x as on June 30, 2020 and Debt : EBITDA ratio stood at 2.70
Slide 16: Sustainability Initiatives – PET Recycling
Sustainability Initiatives – PET Recycling (a PepsiCo franchisee) VBL uses ~ 66,000 MT PET resin as packaging material for its finished product annually. These are high quality food grade virgin PET chips which can be easily recycled to make various products for diverse industries and end uses. VBL
Slide 17: Sustainability Initiatives – VBL's Water Positive Balance
Sustainability Initiatives – VBL’s Water Positive Balance (a PepsiCo franchisee) Key findings of the report: VBL engaged TUV India Pvt. Ltd. for company’s water footprint assurance. wherein, water mass balance and Parameter Apr’18-Mar’19 Jan’19-Dec’19 its various initiatives towards water conservati
Slide 18: Performance Highlights (2015 – H1 2020)
Performance Highlights (2015 – H1 2020) (a PepsiCo franchisee) 5500 15% Revenue 71,296 PAT PAT Margins4,722 13% CAGR (2015-19) – 20.8% 4500 CAGR (2015-19) – 52.6% 51,053 11% Rs. million Rs. million 3500 2,999 38,520 40,034 9% 33,491 33,166 2,141 2500 2,030 7% 1,513 6.6% 5% 1500 5.9% 870 5.3% 3.9% 6.
Slide 19: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited (VBL) Q2&H1 CY 2020 Earnings Conference Call Time • 4:00 pm IST on Tuesday,August 04, 2020 Conference dial-in Primary number • +91 22 6280 1141 / +91 22 7115 8042 Local access number • +91 70456 71221 International Toll Free Numb
Slide 20: About Us
About Us (a PepsiCo franchisee) Varun Beverages Limited (VBL) is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA). The Company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonat
Slide 21: Thank You!
Thank You!