Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q3 2023 Earnings Presentation
20 slides from Varun Beverages's earnings presentation, Nov 6, 2023
Slide 1: Regulation 30 filing cover letter to stock exchanges
November 6, 2023 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: Varun Beverages Limited Q3 & 9M CY2023 Results Presentation
November 6, 2023 (a PepsiCo franchisee) Varun Beverages Limited Q3 & 9M 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 Q3 & 9M 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 ~85% to revenues; 3 in Africa (Morocco, Zambia, Zimbabwe) contribute ~15% for fiscal year 2022 Over 31 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 Mango Shake Energy Drink Club Soda Carbonated Juice Based Drinks Cold Coffee Belgian Fruit Pulp / Juice Based Drinks Ice Tea Choco Kesar Badam Sports Drink Packaged Water Elaichi *
Slide 7: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL – Demand Delivery PepsiCo – Demand Creation 31 yrs + Production Facilities Association 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 Concentrate Other Raw Bottling 39 state-of-the-art production facilities (33 in India & SOLID INRASTRUCTURE (PepsiCo) Materials 6 in International territories) 1
Slide 9: Chairman’s Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q3 and 9M CY2023, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said: “We are pleased to report a robust quarter, achieving a top-line growth of 22% and a PAT growth of 30% YoY. Demonstrating remarkable resilience, o
Slide 10: Key Developments
Key Developments (a PepsiCo franchisee) Credit Rating Upgrade • CRISIL (an S&P Global Company) has reaffirmed the companies long-term rating for bank loan facilities as CRISIL AA+/Stable. Acquisition of stake in Lunarmech Technologies Private Limited • The Company on 16 October 2023, has acquired 5.
Slide 11: Results Overview
Results Overview (a PepsiCo franchisee) 22.0% PAT 33.3% Net Sales EBITDA 28.6% 19,581 1,33,749 31,912 1,09,589 14,686 24,806 21.8% Rs. mn Rs. mn Rs. mn 26.2% 30.0% 23.9% 31,766 38,705 8,821 5,141 6,990 22.6% 3,955 22.8% 22.0% Q3 2022 Q3 2023 9M 2022 9M 2023 Q3 2022 Q3 2023 9M 2022 9M 2023 Q3 2022 Q3
Slide 12: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q3 2023 Q3 2022 YoY(%) 9M 2023 9M 2022 YoY (%) 1.Income (a) Revenue from operations 39,377.56 32,483.05 21.2% 135,900.81 111,333.57 22.1% (b) Excise Duty 672.41 716.85 -6.2% 2,151.89 1,744.50 23.4% Net Revenues 38,
Slide 13: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Sales Volumes / Net Revenues • Consolidated sales volume grew by 15.4% to 220 million cases in Q3 CY2023 from 190 million cases in Q3 CY2022 led by double digit growth in both Indian (14.8% growth) & International (17.5% growth
Slide 14: Performance Highlights (CY2018 – CY2022 & 9M CY2023)
Performance Highlights (CY2018 – CY2022 & 9M CY2023) (a PepsiCo franchisee) REVENUE PAT CAGR (2018-22) – 26.7% Revenue CAGR (2018-22) – 50.8% PAT PAT Margins 15% 1,31,731 1,33,749 19,581 20,500 Rs. mn Rs. mn 17,000 15,501 88,232 14.6% 10% 13,500 71,296 64,501 11.8% 51,053 10,000 7,461 6,500 4,722 3,
Slide 15: Sustainability Initiatives - Water Stewardship
Sustainability Initiatives - Water Stewardship (a PepsiCo franchisee) Parameter (mn KL) CY2020 CY2021 CY2022 Water Recharge Ratio# Water Usage* Ratio(WUR)* Fresh Water Usage Details: Certified Certified Certified 2.72 Target Total water consumption (A) 3.74 4.86 6.32 2.28 min. 2.02 2.00 1.92 1.89 Be
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 light weighting of Preforms and Closures for PET bottles. Phase- 52.5 50.7 Target 47.0 wise implementation of certain 100% SKUs
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 2022 CY 2020 CY 2022 Emissions Scope 1 26.84 51.94 14.01 13.93 Scope 2 129.11 224.45 67.39 60.20 Scope 3 534.76 580.42 279.14 155.67 To
Slide 18: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited Q3 and 9M CY2023 Earnings Conference Call Time • Monday, November 6, 2023 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:
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!