Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q4 2018 Earnings Presentation
21 slides from Varun Beverages's earnings presentation, Feb 20, 2019
Slide 1: Exchange filing cover letter
Corporate Off : Ptot No.31, Institutional Area, Sec.-44, Gurgaon, Haryana-122002 (India) Ph.: +91-124-4643100-500 • Fax: +91-124-4643303/04 E -m a il: info@rjcorp.in • Visit us at : www.rjcorp.in CIN No. : L74899DL1995PLC069839 February 20, 2019 To, BSE Limited National Stock Exchange of India Ltd.
Slide 2: Varun Beverages Limited Q4 & 2018 Results Presentation
February 20, 2019 (a PepsiCo franchisee) Varun Beverages Limited Q4 & 2018 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 Q4 & 2018 Results Overview Annexure i 3
Slide 5: Company Snapshot
Company Snapshot (a PepsiCo franchisee) Key player in the beverage industry Punjab imac Operations spanning across 6 countries - 3 in Chandigarh Greater Noida I & II Haryana — Uttarakhand the Indian Subcontinent (India, Sri Lanka, Sikkim Nepal) contribute -80% to revenues; 3 in Rajasthan Bhjwadi Jai
Slide 6: Brands licensed by PepsiCo
Brands licensed by PepsiCo (a PepsiCo franchisee) Manufacturing & Distribution: Carbonated Soft Drinks cfet Q) pepsi. ^ 1 1h ln r k pepsi Fruit Pulp / Juice Based Drinks IropTcana _ IropTcana f r u j^ Carbonated Juice Based Drinks Distribution: "N Fruit Pulp / Juice Based Drinks Sports Drink Dairy G
Slide 7: Key Player in the Beverage Industry - Business Model
Key Player in the Beverage Industry - Business Model (a PepsiCo franchisee) |r ^ UNDER VBL- END-TO-END EXECUTION ACROSS VALUE CHAIN MANUFACTURING EXISTING CONSOLIDATION I------- ------------- 1---------------------- , 1k______________________________________________ A if Concentrate Other Raw „ ....
Slide 8: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL - Demand Delivery PepsiCo - Demand Creation Investment in Production Facilities - ■ Owner of Trademarks Manufacturing plants ■ Investment in R&D - Product & ■ Sales & Distribution - Vehicles Packaging innovation ■ In-outlet Management -
Slide 9: Chairman's Message
Chairman's Message (a PepsiCo franchisee) Commenting on the performance for Q4 & 2018, Mr. Ravi Jaipuria, Chairman - Varun Beverages Limited said, “We have ended the year on a strong note delivering a robust topline growth of 49% and EBITDA growth of 47% in Q4. Organic volume growth in India was rob
Slide 10: Awards & Accolades
Awards & Accolades (a PepsiCo franchisee) Varun Beverages Ltd. - National Best Employer Brand Award for 2018, by ET Now in collaboration with World HRD Congress Varun Beverages Ltd. - WINNER of Special Commendation for Golden Peacock National Quality Award - 2019 Golden Peacock Awards A Strategic Tt
Slide 11: Key Developments - Acquisition of sub-territories
Key Developments - Acquisition of sub-territories (a PepsiCo franchisee) Commenting on the development, Ravi Jaipuria, Chairman, Varun Beverages Ltd said -“We are excited to share that Varun Beverages Limited (VBL) and PepsiCo India are further strengthening their close to three-decade long partners
Slide 12: Performance Highlights (2013 - 2018)
Performance Highlights (2013 - 2018) (a PepsiCo franchisee) Revenue PAT ♦ PAT Margins 59% CAGR (2013-18) - 19.2% ) 51,053 CAGR (2012-18) - 51.2% 5 .3% 2 ,999 c Rs. million 38,520 40,034 o 33,491 21,175 tA 0£ JLl■ 2013 2014 2015 2016 2017 2018 EBITDA —♦— EBITDA M argins (%) Net Worth ♦ Net D/E CAGR (
Slide 13: Performance Highlights (Q4 & 2018)
Performance Highlights (Q4 & 2018) (a PepsiCo franchisee) Net Sales (adj.) EBITDA* 20.4% PAT ^ 4 0 .1 % 27.5% 10,066 2,999 51,053 c Rs. million o 1 8,358 1 ^ 49.0% 46.6% 20.9% 19.7% i 0£ i 5,274 7'856 326 478 Q4 2017 Q4 2018 2017 2018 Q4 2017 Q4 2018 2017 2018 Q4 2017 Q4 2018 2017 2018 Note: ^Underl
Slide 14: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q4 2018 Q4 2017 YoY(%) 2018 2017 YoY (%) 1. Income (a) Revenue from operations 8,041.4 5,433.2 48.0% 52,281.3 45,162.4 15.8% (b) Excise Duty _ 185.2 159.6 16.0%__ 1,228.7 5,128.4 -76.0% Net Revenues _ 7,856.2 5,273
Slide 15: Consolidated Balance Sheet
Consolidated Balance Sheet (a PepsiCo franchisee) Particulars (Rs million) 31-Dec-18 31-Dec-17 Particulars (Rs million) 31-Dec-18 31-Dec-17 Equity and liabilities Assets Equity Non-current assets (a) Equity share capital 1,826.42 1,825.87 (a) Property, plant and equipm ent 38,601.77 35,411.66 (b) Ot
Slide 16: 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 27.5% YoY in 2018 to Rs. 51,052.5 million led by robust volume growth of 21.9% and value growth of ~ 5.6%. Introduction of higher realization pro
Slide 17: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Debt / Credit Rating • Net debt stood at Rs. 26,715 million as on Dec 31,2018 as against Rs. 25,572 million as on Dec 31,2017. Net Debt as on 2018 includes the debt of Rs. 4,000 million availed for Pathankot facility expected t
Slide 18: Outlook
Outlook (a PepsiCo franchisee) ► To periodically launch innovative ► W ell-positioned to leverage PepsiCo products in select markets in line with brand to increase market changing consum er preferences penetration in licensed territories Focus on non-cola carbonated ► Consolidating existing distribu
Slide 19: Conference Call Details
Conference Call Details (a PepsiCo franchisee) 1 Varun Beverages Limited (VBL) Q4 & 2018 Earnings Conference Call \ Time • 4:00 pm IST on Wednesday, February 20, 2019 Conference dial-in Primary number • +91 22 6280 1141 / +91 22 7115 8042 Local access number • +91 70456 71221 International Toll Free
Slide 20: 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 21: Thank You!
Thank You!