Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q1 2019 Earnings Presentation
18 slides from Varun Beverages's earnings presentation, May 9, 2019
Slide 1: Exchange filing cover letter for results presentation
corp V f IR U n BEVERAGES LIITIICED Corporate O ff: 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 May 9, 2019 To, BSE Limited Nati
Slide 2: Varun Beverages Limited Q1 2019 Results Presentation
May 09, 2019 (a PepsiCo franchisee) Varun Beverages Limited Q1 2019 Results Presentation
Slide 3: Disclaimer
Disclaimer (a PepsiCo franchisee) Certain statements in this communication may be ‘forward looking statements' within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ
Slide 4: Table of Content
Table of Content (a PepsiCo franchisee) Company Overview Chairman’s Message Performance Highlights Q1 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 u t, Himai ab--------- Pradi Operations spanning across 6 countries - 3 in C h a n d ig a rh G reater Noida I & II Haryana — U tta ra k h a n d the Indian Subcontinent (India, Sri Lanka, S ik k im Nepal) contr
Slide 6: Brands licensed by PepsiCo
Brands licensed by PepsiCo (a PepsiCo franchisee) \anufacturing & Distribution: Distribution: Carbonated Soft Drinks Fruit Pulp / Juice Based Drinks 4 Q) pepsi, v —^ n ln r k c*iet p e p si Iropicana Ifoplcana Iroplcana ■ • ESSENTIALS r^r-1 1/-1it DELIGHT Fruit Pulp / Juice Based Drinks Carbonated J
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 r Concentrate Other Raw ■ 36 state-of-the-art production facilities (transfer of 9 (PepsiCo) Materials Bottling production facilities in South and West region is in
Slide 8: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL - Demand Delivery PepsiCo - Demand Creation Production Facilities ■ Trademarks ■ Market Share Gains - Consumer ■ Brand Development - Consumer Pull Push Management Management ■ Sales & Distribution - Vehicles ■ Formulation through Concent
Slide 9: Chairman's Message
Chairman's Message (a PepsiCo franchisee) Commenting on the performance for Q1 2019, Mr. Ravi Jaipuria, Chairman - Varun Beverages Limited said, " We have started the year on a strong note delivering a robust performance on all fronts with topline growth of 24%, EBITDA growth of 26% and PAT growth o
Slide 10: Key Developments
Key Developments (a PepsiCo franchisee) 1. Acquisition of sub-territories February 14, 2019: Concluded the acquisition of PepsiCo India’s previously franchised territories of parts of Maharashtra (14 districts), parts of Karnataka (13 districts) and parts of Madhya Pradesh (3 districts). May 01, 201
Slide 11: Performance Highlights (Q1 2019 & 2018)
Performance Highlights (Q1 2019 & 2018) (a PepsiCo franchisee) Net Sales (adj.) EBITDA 20.4% PAT ^ 27.5% y y 40.1% 51,053 c c 2,999 Rs. million o o 40,034 2,141 ll y y 24.1% tA y y 102.9% t/> 10,948 13,592 0£ 197 400 — i— ^ — i— ^ — i— ^ — i Q1 2018 Q1 2019 2017 2018 Q1 2018 Q1 2019 2017 2018 Q1 201
Slide 12: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q1 2019 Q1 2018 YoY(%) 2018 2017 YoY (%) 1. Income (a) Revenue from operations 13,806.1 11,223.7 23.0% 52,281.3 45,162.4 15.8% (b) Excise Duty 214.6 276.0 -22.2%__ 1,228.7 5,128.4 -76.0% Net Revenues 13,591.5 10,94
Slide 13: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Net Revenues / Sales Volumes • Revenue from operations (net of excise / GST) grew 24.1% YoY in Q1 2019 to Rs. 13,591.5 million led by robust volume growth of 12.3% and value growth of ~ 11.8%. Better product mix (Sting, Tropica
Slide 14: Performance Highlights (2014 - 2018)
Performance Highlights (2014 - 2018) (a PepsiCo franchisee) Revenue PAT ♦ PAT Margins CAGR (2014-18) - 19.4% 51,053 Rs. million I 25,097 2014 2015 2016 2017 2018 EBITDA —♦— EBITDA Margins (%) ^ ■ N e t Worth ♦ Net D/E CAGR (2014-18) - 27.2% CAGR (2014-18) - 55.5% 19.7% 20 .6% 20.9% 18.7% 10,066 c 18
Slide 15: Outlook
Outlook (a PepsiCo franchisee) ► To periodically launch innovative ► Well-positioned to leverage PepsiCo products in select markets in line with brand to increase market changing consumer preferences penetration in licensed territories Focus on non-cola carbonated ► Consolidating existing distributo
Slide 16: Conference Call Details
Conference Call Details (a PepsiCo franchisee) s N 1 Varun Beverages Limited (VBL) Q1 2019 Earnings Conference Call \ T im e • 4:00 pm 1ST on Thursday, May 09, 2019 Conference dial-in P rim a ry number • +91 22 6280 1141 / +9122 7115 8042 Local access number • +91 70456 71221 International To ll Fre
Slide 17: 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 18: Thank You!
Thank You!