Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q1 CY2020 Earnings Presentation
20 slides from Varun Beverages's earnings presentation, May 5, 2020
Slide 1: Stock exchange cover letter for Q1 results presentation
ifcorp V flR L in B E V E R A G E S Sb Corporate O ff : Plot No.31, Institutional Area, Sec.-44, Gurgaon, Haryana-122002 (India) V — 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 May 5, 2020 To BSE Limi
Slide 2: Varun Beverages Limited Q1 CY 2020 Results Presentation
May 05, 2020 (a PepsiCo franchisee) Varun Beverages Limited Q1 CY 2020 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 Q1 CY 2020 Results Overview Performance Highlights Sustainability i 3
Slide 5: Company Snapshot
Company Snapshot (a PepsiCo franchisee) Key player in the beverage industry Pathankot Him* Operations spanning across 6 countries - 3 in Chandigarh Greater Noida I & II Haryana — Uttarakhand the Indian Subcontinent (India, Sri Lanka, Sikkim Nepal) contribute -85% to revenues; 3 in Rajasthan Bhiwadi
Slide 6: Brands licensed to VBL
Brands licensed to VBL (a PepsiCo franchisee) Brands licensed by PepsiCo: Dairy Based Drinks Carbonated Soft Drinks cfier Q) pepsi. '/ black pepsi Mango Shake Carbonated Juice Based Drinks Energy Drink Club Soda Ice Tea EVtRVESS Cold Fruit Pulp / Juice Based Drinks Coffee Iropicana Troptcana ; ;. cc
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 ---- 1 Concentrate Other Raw (PepsiCo) Materials Bottling ■ 38 state-of-the-art production facilities SOLID INRASTRUCTURE 90+ depots DISTRUBUTION & WAREHOUSING 2,500
Slide 8: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL - Demand Delivery PepsiCo - Demand Creation Production Facilities ■ Trademarks Sales & Distribution - GTM & Logistics ■ Formulation through Concentrate ■ In-outlet Management - Visi-Coolers ■ Product & Packaging innovation through invest
Slide 9: Chairman's Message
Chairman's Message (a PepsiCo franchisee) Commenting on the performance for Q1 CY 2020, Mr. Ravi Jaipuria, Chairman - Varun Beverages Limited said, “We started the new fiscal year on a strong note with healthy demand and robust volume growth across our domestic and International markets. This enable
Slide 10: Key Developments (1/2)
Key Developments (1/2) (a PepsiCo franchisee) COVID-19 update • The Company is taking all recommended precautions in its operations against the spread of COVID-19, which includes sanitization, closure of corporate office and its plants, following all government directions on the subject and duration
Slide 11: Key Developments (2/2)
Key Developments (2/2) (a PepsiCo franchisee) Introduction of new corporate tax rates: • On 20 September 2019, vide the Taxation Laws (Amendment) Ordinance 2019, the Government of India inserted Section 115BAB in the Income Tax Act,1961 which provides domestic companies a non-reversible option to pa
Slide 12: Performance Highlights (Q1CY 2020, CY 2019 & CY 2018)
Performance Highlights (Q1CY 2020, CY 2019 & CY 2018) (a PepsiCo franchisee) N e t S a le s E B ITD A PA T 57-5% 39.7% 43.8% 4,722 7U 9 6 14,477 ■ Rs. m illio n 1 2,999 51,053 I 23.3 % 24.2% 10,066 50.0% 20.3% 13,592 16,764 2,184 2'712 19.7% 16.1% 16.2% 400 601 ----------- 1 --- ---------- 1 --- 1 Q
Slide 13: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q1 2020 Q1 2019 YoY(%) 2019 2018 YoY (%) 1. Income (a) Revenue from operations 16,992.5 13,806.1 23.1% 72,484.6 52,281.3 38.6% (b) Excise Duty _ 228.1 214.6 6.3%__ 1,188.8 1,228.7 -3.2% Net Revenues _ 16,764.4 13,5
Slide 14: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Net Revenues / Sales Volumes • Total sales volumes were up 26.2% YoY at 114.0 million cases in Q1 2020 as compared to 90.3 million cases in Q1 2019. • Post lockdown restriction imposed by the Govt. of India due to the COVID-19
Slide 15: Performance Highlights (2015 - 2019)
Performance Highlights (2015 - 2019) (a PepsiCo franchisee) Revenue 71,296 ^■PA T —♦— PAT Margins 4,722 CAGR (2015-19) - 20.8% Rs. million 38,520 40,034 33,491 III l l 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EBITDA — EBI TDA Margins (%) ^ ■ N e t Worth ♦ Net D/E 20.3% CAGR (2015-19) - 22.9
Slide 16: Sustainability Initiatives - PET Recycling
Sustainability Initiatives - PET Recycling (a PepsiCo franchisee) U > SUPPORT PET RECYCLING VBL uses ~ 66,000 MT PET resin as packaging material for its finished product annually. These are high quality food grade virgin PET chips which can be easily recycled to make various products for diverse ind
Slide 17: Sustainability Initiatives - VBL's Water Positive Balance
Sustainability Initiatives - VBL's Water Positive Balance (a PepsiCo franchisee) Key findings of the report: VBL engaged TUV India Pvt. Ltd. for company's water footprint Parameter Quantity assurance. wherein, water mass balance and its various initiatives Water consumption 2.91 mn KL towards water
Slide 18: Conference Call Details
Conference Call Details (2 PepsiCo franchisee) a Varun Beverages Limited (VBL) Q1 CY 2020 Earnings Conference Call » Time Conference dial-in Primary number Local access number International Toll Free Number 4:00 pm IST on Tuesday, May 05, 2020 +91 22 6280 1141 / +91 22 7115 8042 +91 70456 71221 Hong
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!