Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q1 CY2025 Earnings Presentation
21 slides from Varun Beverages's earnings presentation, Apr 30, 2025
Slide 1: Exchange filing cover letter
April 30, 2025 To, National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, Block G, C/1, Bandra Kurla Phiroze Jeejeebhoy Towers Complex, Bandra (E), Mumbai – 400 051 Dalal Street, Mumbai – 400 001 Email: cmlist@nse.co.in Email: corp.relations@bseindia.com Symbol: VBL Security Code: 540180
Slide 2: Varun Beverages Limited Q1 CY2025 Results Presentation
April 30, 2025 (a PepsiCo franchisee) Varun Beverages Limited Q1 CY2025 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 Contents
Table of Contents Company Overview Chairman’s Message Q1 CY2025 Results Overview Performance Highlights Sustainability Initiatives 3
Slide 5: Company Snapshot
Company Snapshot Key player in the global beverage industry and the second largest franchisee of PepsiCo in the world (outside US) with operations spanning across 10 countries with franchise rights and additional 4 countries with distribution rights. Total Sales Volumes (mn Cases*) 2019-2024: Sales
Slide 6: Complete Brand Portfolio
Complete Brand Portfolio Brands licensed by PepsiCo: Own Brands^: Carbonated Soft Drinks Club Soda Carbonated Soft Drinks Fruit Pulp / Juice Based Drinks Energy Drink Energy Drink Sports Drink Carbonated Juice Ice Tea Packaged Water Packaged Water Based Drinks Snacks# Dairy Based Beverages* # Manufa
Slide 7: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo Demand Delivery Demand Creation • Production Facilities 33+ • Trademarks • Sales & Distribution – Years of Association • Formulation through (agreement in India valid till April, 2039) GTM & Logistics Concentrate • In-outlet Management – Visi-Coolers 90%+ • Produc
Slide 8: Key Player in the Beverage Industry – Business Model
Key Player in the Beverage Industry – Business Model MANUFACTURING ▪ 50 state-of-the-art production facilities SOLID INRASTRUCTURE VBL- END-TO-END EXECUTION ACROSS VALUE CHAIN Concentrate Other Raw Bottling ▪ 38 in India & 12 in International territories (PepsiCo) Materials ▪ 130+ depots ▪ 2,800+ pr
Slide 9: Chairman's Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q1 CY2025, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said: “We are pleased to report a strong operational and financial performance in the first quarter of CY2025. Consolidated sales volumes grew by 30.1% YoY, dr
Slide 10: Key Developments
Key Developments (a PepsiCo franchisee) 1. Commencement of Commercial Production at Kangra and Prayagraj : ▪ We have commissioned new production facilities at Kangra (Himachal Pradesh) and Prayagraj (Uttar Pradesh). ▪ Further, we have set-up backward integration facilities at our Prayagraj plant in
Slide 11: Results Overview
Results Overview (a PepsiCo franchisee) 24.7% PAT 25.3% Revenue EBITDA 30.5% 200,077 26,343 47,111 160,426 21,018 36,095 Rs. mn Rs. mn Rs. mn 28.9% 27.8% 33.5% 23.5% 55,669 12,640 7,314 43,173 9,888 22.5% 5,480 22.9% 22.7% Q1 2024 Q1 2025 CY 2023 CY 2024 Q1 2024 Q1 2025 CY 2023 CY 2024 Q1 2024 Q1 20
Slide 12: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q1 2025 Q1 2024 YoY(%) CY 2024 CY 2023 YoY (%) 1.Income (a) Revenue from operations 56,800.26 43,979.80 29.2% 204,813.28 163,210.63 25.5% (b) Excise Duty 1,130.91 806.67 40.2% 4,736.78 2,784.82 70.1% Net Revenues 5
Slide 13: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Sales Volumes / Net Revenues • Consolidated sales volume grew by 30.1% to 312.4 million cases in Q1 CY2025 from 240.2 million cases in Q1 CY2024 driven by strong organic volume growth of 15.5% in India and in-organic volume con
Slide 14: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) EBITDA • EBITDA increased by 27.8% in Q1 CY2025 to Rs. 12,639.6 million from Rs. 9,887.6 million in Q1 CY2024 in-line with Net Revenue growth. • EBITDA margins improved in India by 111 bps on account of operational efficiencies
Slide 15: Performance Highlights (CY2019 – CY2024)
Performance Highlights (CY2019 – CY2024) (a PepsiCo franchisee) REVENUE EBITDA EBITDA EBITDA Margins (%) CAGR (2019-24) – 22.9% CAGR (2019-24) – 26.6% 200 55.00 30% 160 22.5% 23.5% 45.00 20.3% 21.2% 25% 132 18.6% 18.8% 35.00 20% 88 71 65 25.00 47 15% 15.00 36 10% 28 Rs. bn Rs. bn 5.00 14 12 17 5% (5
Slide 16: SUSTAINABILITY – Being Water Positive
SUSTAINABILITY – Being Water Positive (CDP water rating: A-) Increase ground water level 2x Reduce water usage (WUR) WRR -26% by 2025 Water consumed Per liter of beverage produced * Steady state WUR was 1.54 times in 2023 and 1.50 times in 2024, the differential is on account of stabilization of 2 n
Slide 17: SUSTAINABILITY – Reducing Carbon Footprint
SUSTAINABILITY – Reducing Carbon Footprint (CDP climate rating: A) 30% Net Zero Increase Renewable Energy by 2030 GHG Emissions by 2050 Solar (Rooftop + Captive Power Solution) & Windmill Operational boundaries across different scopes RE Mix % & kWh million units 125 79 58 (16%) 21 (13%) 18 (6%) (7%
Slide 18: SUSTAINABILITY – Robust Packaging & Plastic Recycling
SUSTAINABILITY – Robust Packaging & Plastic Recycling Increase Plastic Waste Recycle Reduce Plastic Usage Ahead of EPR Regulations Packaging rationalization 100% • Removal of pads (20k MT of paper 86% 88% saving, equivalent to 400k trees) 70% 80% • Shrink film and label rationalization (1.4 MT of ma
Slide 19: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited Q1 CY2025 Earnings Conference Call Time • Wednesday, April 30, 2025 at 2:30 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: 800 1
Slide 20: 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 21: Thank You!
Thank You!