Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q2 & H1 CY2022 Earnings Presentation
23 slides from Varun Beverages's earnings presentation, Aug 1, 2022
Slide 1: Exchange filing cover letter
corp Corporate O f f : Plot No.31, Institutional Area, Sec.-44, Gurgaon, Haryana-122002 (India) Ph.: +91-124-4643100-500 • Fax: +91-124-4643303/04 E -m ail: info@rjcorp.in • Visit us a t : www.varunpepsi.com CIN No. : L74899DL1995PLC069839 August 1, 2022 To, National Stock Exchange of India Ltd. BSE
Slide 2: Q2 & H1 CY 2022 Results Presentation
August 1, 2022 (a PepsiCo franchisee) Varun Beverages Limited Q2 & H1 CY 2022 Results Presentation
Slide 3: Disclaimer
Disclaimer (a PepsiCo franchisee) This communication contains certain forward-looking statements relating to the business, financial performance, strategy and results of Varun Beverages Limited (“VBL” or the “Company”) and/ or the industry in which it operates. Such forward-looking statements involv
Slide 4: Table of Content
Table of Content (a PepsiCo franchisee) 1 Company Overview 2 Chairman’s Message 3 Q2 & H1 CY2022 Results Overview 4 Performance Highlights 5 Sustainability Initiatives 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 ~81% to revenues; 3 in Africa (Morocco, Zambia, Zimbabwe) contribute ~19% for fiscal year 2021 Over 30 years st
Slide 6: Brands Licensed to VBL
Brands Licensed to VBL (a PepsiCo franchisee) Brands licensed by PepsiCo: Dairy Based Beverages* Carbonated Soft Drinks Mango Shake Carbonated Juice Based Drinks Energy Drink Club Soda Ice Tea Cold Coffee Belgian Choco Fruit Pulp / Juice Based Drinks Kesar Badam Sports Drink Packaged Water Elaichi *
Slide 7: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL – Demand Delivery PepsiCo – Demand Creation 30 yrs + ▪ Production Facilities Association ▪ Trademarks ▪ Sales & Distribution – GTM & Logistics ▪ Formulation through Concentrate ▪ In-outlet Management – Visi-Coolers ▪ Product & Packaging
Slide 8: 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 ▪ 100+ depots DISTRUBUTION & WAREHOUSING ▪ 2,000+
Slide 9: Chairman's Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q2 and H1 CY2022, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said: “We are pleased to share that we have delivered an all-time high performance during the quarter. Our continuous effort to invest in our business d
Slide 10: Key Developments
Key Developments (a PepsiCo franchisee) Revised Corporate Tax Rate for India • On 20 September 2019, vide the Taxation Laws (Amendment) Ordinance 2019, the Government of India inserted Section 115BAB in the Income Tax Act,1961 which provides domestic companies a non-reversible option to pay corporat
Slide 11: Awards and Accolades
Awards and Accolades (a PepsiCo franchisee) PepsiCo’s Best Bottler in AMESA Sector for the year 2021 India Golden Achievers’ Peacock Award Award 2022 Excellence in for Best Corporate Corporate Governance - Governance 2021 Golden Responsible Peacock Business National Award for Quality Best Award - 20
Slide 12: Results Overview
Results Overview (a PepsiCo franchisee) Net Sales EBITDA PAT 77,823 17,816 10,731 65.9% 12,506 87.1% 8,020 135.6% 49,548 Rs. mn 46,907 Rs. mn Rs. mn 102.3% 119.1% 9,524 151.6% 4,556 24,498 5,708 3,188 25.2% 20.3% 22.9% 23.3% Q2 2021 Q2 2022 H1 2021 H1 2022 Q2 2021 Q2 2022 H1 2021 H1 2022 Q2 2021 Q2
Slide 13: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. mn) Q2 2022 Q2 2021 YoY(%) H1 2022 H1 2021 YoY (%) 1. Income (a) Revenue from operations 50,175.75 24,830.44 102.1% 78,850.52 47,529.21 65.9% (b) Excise Duty 627.60 331.99 89.0% 1,027.65 621.84 65.3% Net Revenues 49,548.15
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet (a PepsiCo franchisee) Particulars (Rs. mn) 30-Jun-22 31-Dec-21 Particulars (Rs. mn) 30-Jun-22 31-Dec-21 Equity and liabilities To be updated Assets Equity Non-current assets (a) Equity share capital 6,495.50 4,330.33 (a) Property, plant and equipment 54,571.11 51,551.72 (
Slide 15: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Net Revenues / Sales Volumes • Net Revenue from operations grew by 102.3% YoY in Q2 CY2022 to Rs. 49,548 mn primarily because of robust volume growth (increased by 96.9% to reach 300 mn cases) and improvement in net realization
Slide 16: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Debt • Net debt stood at Rs. 20,555 mn as on Jun 30, 2022 as against Rs. 30,053 mn as on Dec 31, 2021. • Debt : Equity ratio stood at 0.4x as on Jun 30, 2022 • Debt : EBITDA (TTM) ratio stood at 0.8x as on Jun 30, 2022. Capex /
Slide 17: Performance Highlights (CY2017 – CY2021 & H1 CY2022)
Performance Highlights (CY2017 – CY2021 & H1 CY2022) (a PepsiCo franchisee) Revenue PAT PAT Margins 88,232 11,500 10,731 15% CAGR (2017-21) – 21.8% 77,823 71,296 CAGR (2017-21) – 36.6% 13% 64,501 9,500 13.8% 7,461 11% Rs. mn Rs. mn 51,053 7,500 9% 40,034 4,722 5,500 8.5% 7% 2,999 3,573 6.6% 5% 3,500
Slide 18: Sustainability Initiatives - Water Stewardship
Sustainability Initiatives - Water Stewardship (a PepsiCo franchisee) Parameter (mn KL) CY2019 CY2020 CY2021 Water Recharge Ratio# Water Usage Ratio(WUR)* Audited Audited Audited 2.72 Target Total water consumption (A) 4.12 3.74 4.86 2.28 min. Beverage production (B) 2.12 1.95 2.57 2.00 1.94 1.92 Wa
Slide 19: Sustainability Initiatives – Plastic Waste Management
Sustainability Initiatives – Plastic Waste Management (a PepsiCo franchisee) Weight Reduction of Pre-forms (grams) Plastic Waste Recycling % Plastic usage reduction through light weighting of Preforms and Target for a non-COVID year – Closures for PET bottles. Phase- 52.5 50.7 47.0 2023 onwards wise
Slide 20: Sustainability Initiatives - Climate Action
Sustainability Initiatives - Climate Action (a PepsiCo franchisee) mn Kg CO2e Grams / litre* Energy Efficiency GHG emissions are audited by Deutsch Quality Systems (litre/kWh) GHG CY 2020 CY 2021 CY 2020 CY 2021 (India) Private Limited (DQS Emissions India), an Internationally 6.7% Scope 1 23.91 29.
Slide 21: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited Q2 and H1 CY 2022 Earnings Conference Call Time • Monday, August 1, 2022 at 4:00 PM IST Conference dial-in Primary number • +91 22 6280 1141 / +91 22 7115 8042 International Toll Free Number • Hong Kong: 800 964 448 • Singapore:
Slide 22: About Us
About Us (a PepsiCo franchisee) Varun Beverages Limited (“VBL” or the “Company”) 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 select
Slide 23: Thank You!
Thank You!
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