Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q2 & H1 2019 Earnings Presentation
20 slides from Varun Beverages's earnings presentation, Aug 1, 2019
Slide 1: Regulation 30 filing cover letter to stock exchanges
Corporate Off : Plot No.31, Institutional Area, Sec.-44, Gurgaon, Haryana-122002 (India) Ph.: +91-124-4643100-500 • Fax: +91-124-4643303/04 E -m a il: info@rjcorp.in • Visit us a t : www.varunpepsi.com CIN No. : L74899DL1995PLC069839 August 1, 2019 To, BSE Limited National Stock Exchange of India Lt
Slide 2: Varun Beverages Limited Q2 & H1 2019 Results Presentation
August 01, 2019 (a PepsiCo franchisee) Varun Beverages Limited Q2 & H1 2019 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) Company Overview Chairman’s Message Performance Highlights Q2 & H1 2019 Results Overview Annexure i 3
Slide 5: Company Snapshot
Company Snapshot (a PepsiCo franchisee) Key player in the beverage industry P a th a n k o y d ] Punjab Operations spanning across 6 countries - 3 in C h andigarh L_Greater Noida I & II Haryana — — Uttarakhand the Indian Subcontinent (India, Sri Lanka, £ Nepal Sikkim Nepal) contribute ~80% to revenu
Slide 6: Brands licensed by PepsiCo
Brands licensed by PepsiCo (a PepsiCo franchisee) Carbonated Soft Drinks ' ( ^ pepsl i > pepsi. Carbonated Juice Based Drinks Energy Drink S* Fruit Pulp / Juice Based Drinks fropTcana Jroprcana fropTcana jroptcana E S SENT I AL S DELIGHT Sports Drink Ice Tea Packaged Water 5
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 M A N U FA C TU RIN G r Concentrate Other Raw ■ (PepsiCo) Materials Bottling 36 state-of-the-art production facilities SO LID IN RA STRUC TURE 90+ depots DISTRUBUTIO N & W A REH O
Slide 8: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL - Demand Delivery PepsiCo - Demand Creation 27 yrs + Production Facilities Association ■ Trademarks ■ Market Share Gains - Consumer ■ Formulation through Concentrate Push Management ■ Product & Packaging innovation ■ Sales & Distribution
Slide 9: Chairman's Message
Chairman's Message (a PepsiCo franchisee) Commenting on the performance for Q2 & H1 2019, Mr. Ravi Jaipuria, Chairman - Varun Beverages Limited said, "We are happy to share that Q2 2019 has been a stand out quarter for us and we have delivered a robust performance with topline growth of 36.5%, EBITD
Slide 10: Key Developments
Key Developments (a PepsiCo franchisee) 1. Acquisition of sub-territories February 14, 2019: C oncluded the acquisition of PepsiC o In d ia ’s previously franchised territories of parts of M aharashtra (14 districts), parts of Karnataka (13 districts) and parts of M adhya Pradesh (3 districts). M a
Slide 11: Performance Highlights (Q2 & H1 2019)
Performance Highlights (Q2 & H1 2019) (a PepsiCo franchisee) Net Sales (adj.) PAT 36.3% 32.2% 32.0% 4,450 4,050 36.5% 41,696 c Rs. million 0 20,591 Q2 2018 Q2 2019 H1 2018 H1 2019 1 Q2 2018 Q2 2019 H1 2018 H1 2019 Quarterly Category-wise Sales Volum es (m illion unit cases) IIII Q2 2018 Q2 2019 H1 2
Slide 12: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q2 2019 Q2 2018 YoY(%) H1 2019 H1 2018 YoY (%) 1. Income (a) Revenue from operations 28,514.6 20,971.5 36.0% 42,320.7 32,195.2 31.5% (b) Excise Duty _ 410.1 380.2 7.9% _ 624.7 656.2 -4.8% Net Revenues _ 28,104.5 20
Slide 13: Balance Sheet
Balance Sheet (a PepsiCo franchisee) [Particulars (Rs. million) 30-Jun-19 31-Dec-18 30-Jun-18 Particulars (Rs. million) 30-Jun-19 31-Dec-18 30-Jun-18| Equity and liabilities Assets Equity . Non-current assets (a) Equity share capital 1,826.55 1,826.42 1,826.15 ! (a) Property, plant and equipment 59,
Slide 14: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Net Revenues / Sales Volumes • Total sales volumes were up 43.3% YoY at 195.5 million cases in Q2 2019 as compared to 136.4 million cases in Q2 2018. The volume growth is supported by good performance in the season months in In
Slide 15: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Debt / Credit Rating • Net debt stood at Rs. 37,295 million as on June 30, 2019 as against Rs. 26,715 million as on December 31, 2018. Debt : Equity ratio stood at 1.49x as on June 30, 2019 and D e b t: EBITDA ratio stood at 2.
Slide 16: Performance Highlights (2014 - 2018)
Performance Highlights (2014 - 2018) (a PepsiCo franchisee) Revenue PAT PAT Margins 4,450 CAGR (2014-18) - 19.4% CAGR (2015-18) - 51.1% 51,053 c Rs. million 41,696 o 2,999 38,520 40»034 33,491 25,097 ■I tA Q£ 2014 2015 2016 2017 2018 H1 2019 2014 2015 2016 2017 2018 H1 2019 EBITDA — EBITDA Margins (
Slide 17: Outlook
Outlook (a PepsiCo franchisee) ► To periodically launch innovative ► Well-positioned to leverage products in select markets in line PepsiCo brand to increase with changing consumer market penetration in licensed preferences territories ► Focus on non-cola carbonated ► Consolidating existing beverage
Slide 18: Conference Call Details
Conference Call Details (a PepsiCo franchisee) s N 1 Varun Beverages Limited (VBL) Q2 2019 Earnings Conference Call \ T im e • 3:30 pm 1ST on Thursday, August 01,2019 C onference d ia l-in P r im a r y n u m b e r • +91 22 6280 1141 / +91 22 7115 8042 Local access n u m b e r • +91 70456 71221 In te
Slide 19: 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 20: Thank You!
Thank You!