Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q4 2023 Earnings Presentation
24 slides from Varun Beverages's earnings presentation, Feb 5, 2024
Slide 1: Cover letter to stock exchanges
February 5, 2024 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: 54018
Slide 2: Q4 & CY2023 Results Presentation
February 5, 2024 (a PepsiCo franchisee) Varun Beverages Limited Q4 & CY2023 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 (a PepsiCo franchisee) 1 Company Overview 2 Chairman’s Message 3 Q4 & CY2023 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 ~83% to revenues; 3 in Africa (Morocco, Zambia, Zimbabwe) contribute ~17% for fiscal year 2023 Over 32 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 Energy Drink Club Soda Carbonated Mango Shake Juice Based Drinks Belgian Cold Choco Coffee Fruit Pulp / Juice Based Drinks Ice Tea Kesar Badam Sports Drink Packaged Water Elaichi R
Slide 7: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL – Demand Delivery PepsiCo – Demand Creation 32 yrs + Association ▪ Production Facilities ▪ Trademarks ▪ Sales & Distribution – GTM & Logistics ▪ Formulation through Concentrate ▪ In-outlet Management – Visi-Coolers ▪ Product & Packaging
Slide 8: Business Model - End-to-End Execution Across Value Chain
Key Player in the Beverage Industry – Business Model (a PepsiCo franchisee) VBL- END-TO-END EXECUTION ACROSS VALUE CHAIN MANUFACTURING ▪ 40 state-of-the-art production facilities (34 in India & Concentrate Other Raw 6 in International territories) (pipeline of plants – (PepsiCo) Materials Bottling G
Slide 9: Chairman's Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q4 and CY2023, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said: “Despite the abnormally high unseasonal rains in the peak season, we are pleased to conclude CY2023 on a strong note. We witnessed a healthy double-d
Slide 10: Key Developments
Key Developments (a PepsiCo franchisee) South Africa territory M&A opportunity: • The Company has entered into a binding agreement to acquire 100% stake in the business conducted by The Beverage Company (Proprietary) Limited, South Africa along-with its wholly-owned subsidiaries ("BevCo"), with an o
Slide 11: Key Developments
Key Developments (a PepsiCo franchisee) Commencement of Commercial Production at 2 Greenfield facilities and Brownfield Expansion at 6 facilities: • For CY2023 season, we commissioned new production facilities at Bundi, Rajasthan and at Jabalpur, Madhya Pradesh, as well as expanded our capacity at s
Slide 12: Awards and Accolades
Awards and Accolades (a PepsiCo franchisee) PepsiCo’s International Bottler of the year 2022 VBL received the esteemed recognition of "PepsiCo's International Bottler of the Year 2022." This outstanding accomplishment further validates VBL's dedication to operational excellence, strong governance pr
Slide 13: Results Overview
Results Overview (a PepsiCo franchisee) 21.8% 29.5% Net Sales 1,60,426 EBITDA PAT 35.6% 21,018 36,095 1,31,731 27,881 15,501 Rs. mn Rs. mn Rs. mn 20.5% 36.0% 22.5% 76.3% 26,677 21.2% 22,142 3,075 4,183 1,438 815 13.9% 15.7% Q4 2022 Q4 2023 CY 2022 CY 2023 Q4 2022 Q4 2023 CY 2022 CY 2023 Q4 2022 Q4 2
Slide 14: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q4 2023 Q4 2022 YoY(%) CY 2023 CY 2022 YoY (%) 1.Income (a) Revenue from operations 27,309.82 22,572.01 21.0% 163,210.63 133,905.58 21.9% (b) Excise Duty 632.93 429.66 47.3% 2,784.82 2,174.16 28.1% Net Revenues 26,
Slide 15: Consolidated Balance Sheet
Consolidated Balance Sheet (a PepsiCo franchisee) Particulars (Rs million) 31-Dec-23 31-Dec-22 Particulars (Rs million) 31-Dec-23 31-Dec-22 Equity and liabilities Assets Equity Non-current assets (a) Equity share capital 6,496.07 6,495.50 (a) Property, plant and equipment 68,031.32 54,415.78 (b) Oth
Slide 16: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Sales Volumes / Net Revenues • Despite the abnormally high unseasonal rains in the peak season, consolidated sales volume grew by 13.9% to 912.9 million cases in CY2023 from 801.8 million cases in CY2022 led by double digit gro
Slide 17: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Debt • Net debt stood at Rs. 47,345 mn as on Dec 31, 2023 as against Rs. 34,096 mn as on Dec 31, 2022. Major reason for increase in Net debt is due to increase in CWIP and capital advances incrementally by Rs. 12,000 mn (Closin
Slide 18: Performance Highlights (CY2019 – CY2023)
Performance Highlights (CY2019 – CY2023) (a PepsiCo franchisee) REVENUE PAT CAGR (2019-23) – 22.5% Revenue CAGR (2019-23) – 45.2% PAT PAT Margins 24,500 15% 1,60,426 21,018 21,000 Rs. mn Rs. mn 1,31,731 17,500 15,501 10% 88,232 14,000 13.1% 71,296 64,501 10,500 7,461 11.8% 5% 7,000 4,722 3,573 8.5%
Slide 19: Sustainability Initiatives - Water Stewardship
Sustainability Initiatives - Water Stewardship (a PepsiCo franchisee) Parameter (mn KL) CY2021 CY2022 CY2023 Water Recharge Ratio# Water Usage* Ratio(WUR)* Fresh Water Usage Details: Certified Certified Provisional 2.28 Target min. Total water consumption (A) 4.86 6.32 6.38 2.02 2.01 2.00 1.89 Bever
Slide 20: 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 Target 52.5 light weighting of Preforms and 50.7 100% 47.0 Closures for PET bottles. 86% 80% 36.0 34.7 34.7 32.5 70% 30.7 66% 2
Slide 21: Sustainability Initiatives - Climate Action
Sustainability Initiatives - Climate Action (a PepsiCo franchisee) mn Kg CO2e Grams / litre* Reduction of Carbon emissions / litre (base year – 2020) GHG CY 2023 CY 2023 CY 2020 CY 2020 Emissions (provisional) (provisional) Scope 1 26.84 57.42 14.01 13.86 Scope 2 129.11 263.28 67.39 63.55 Scope 3 53
Slide 22: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited Q4 and CY2023 Earnings Conference Call Time • Monday, February 5, 2024 at 3:30 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: 80
Slide 23: 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 24: Thank You!
Thank You!