Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q1 CY2024 Earnings Presentation
20 slides from Varun Beverages's earnings presentation, May 13, 2024
Slide 1: Exchange filing cover letter
May 13, 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: 540180 Su
Slide 2: Q1 CY2024 Results Presentation
May 13, 2024 (a PepsiCo franchisee) Varun Beverages Limited Q1 CY2024 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 Q1 CY2024 Results Overview 4 Performance Highlights 5 Sustainability Initiatives 3
Slide 5: Company Snapshot
Company Snapshot (a PepsiCo franchisee) Key player in the global beverage industry with operations spanning across 10 countries with franchise rights and additional 4 countries with distribution rights. For fiscal year 2023, 3 territories in the Indian Subcontinent (India, Sri Lanka, Nepal) cont
Slide 6: Brand Portfolio
Brand Portfolio (a PepsiCo franchisee) Brands licensed by PepsiCo: Own Brands^: Carbonated Soft Drinks Club Soda Carbonated Soft Drinks Energy Drink Fruit Pulp / Juice Based Drinks Energy Drink Sports Drink Carbonated Ice Tea Packaged Water Packaged Water Juice Based Drinks Dairy Based Beverages* Sn
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: 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 ▪ 47 state-of-the-art production facilities (36 in India & Concentrate Other Raw 11 in International territories) (pipeline – Kinshasa in (PepsiCo) Materials Bottlin
Slide 9: Chairman's Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q1 CY2024, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said: “In-spite of delay in the holi festival by 17 days resulting in delayed seasonality cycle, we are pleased to report a reasonably strong overall operation
Slide 10: Key Developments
Key Developments (a PepsiCo franchisee) 1. Acquisition of South Africa and neighboring territories: ▪ Consummated the acquisition of The Beverage Company (Proprietary) Limited, South Africa along-with its wholly-owned subsidiaries ("BevCo"). Accordingly, Bevco has become subsidiary of our Company wi
Slide 11: 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 10.9% 23.9% 24.9% 22.5% 38,930 43,173 7,980 9,888 4,386 5,480 21.2% 20.5% 22.9% Q1 2023 Q1 2024 CY 2022 CY 2023 Q1 2023 Q1 2024 CY 2022 CY 2023 Q1 2023 Q1
Slide 12: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q1 2024 Q1 2023 YoY(%) CY 2023 CY 2022 YoY (%) 1.Income (a) Revenue from operations 43,979.80 39,525.91 11.3% 163,210.63 133,905.58 21.9% (b) Excise Duty 806.67 596.16 35.3% 2,784.82 2,174.16 28.1% Net Revenues 43,
Slide 13: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Sales Volumes / Net Revenues • Consolidated sales volume grew by 7.2% to 240.2 million cases in Q1 CY2024 from 224.1 million cases in Q1 CY2023. • During the quarter, India territory grew by 4.4% and International markets by 21
Slide 14: Performance Highlights (CY2018 – CY2023)
Performance Highlights (CY2018 – CY2023) (a PepsiCo franchisee) REVENUE PAT CAGR (2018-23) – 25.7% Revenue CAGR (2018-23) – 47.6% PAT PAT Margins 24,500 21,018 15% 1,60,426 21,000 Rs. mn Rs. mn 1,31,731 17,500 15,501 10% 88,232 14,000 13.1% 71,296 11.8% 64,501 10,500 7,461 51,053 5% 7,000 4,722 3,57
Slide 15: 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 Certified 2.28 Target min. Total water consumption (A) 4.86 6.32 6.39 2.02 2.02 2.00 1.89 Beverag
Slide 16: 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 17: 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 2020 CY 2023 CY 2020 CY 2023 Emissions Scope 1 26.84 42.93 14.01 10.36 Scope 2 129.11 210.41 67.39 50.79 Scope 3 534.76 581.93 279.14 140.47 To
Slide 18: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited Q1 CY2024 Earnings Conference Call Time • Monday, May 13, 2024 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: 800 101 20
Slide 19: 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 20: Thank You!
Thank You!