Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q1 CY2018 Earnings Presentation
22 slides from Varun Beverages's earnings presentation, May 3, 2018
Slide 1: Varun Beverages Limited Q1 CY2018 Results Presentation
May 03, 2018 (a PepsiCo franchisee) Varun Beverages Limited Q1 CY2018 Results Presentation
Slide 2: 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 3: Table of Content
Table of Content (a PepsiCo franchisee) 1 Company Overview 2 Q1 CY2018 Results Overview 3 Financial Highlights 4 Industry Prospects 5 Annexure 3
Slide 4: 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 ~90% to revenues; 3 in Africa (Morocco, Zambia, Zimbabwe) contribute ~10% Over 25 years strategic association with Pe
Slide 5: Brands licensed by PepsiCo
Brands licensed by PepsiCo (a PepsiCo franchisee) Manufacturing & Distribution: Carbonated Soft Drinks Fruit Pulp / Juice Based Drinks Energy Drink Packaged Water Carbonated Juice Based Drinks Distribution: Fruit Pulp / Juice Based Drinks Sports Drink Dairy 5
Slide 6: 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 (PepsiCo) Materials Bottling 26 state-of-the-art production facilities SOLID INRASTRUCTURE 72 owned depots DISTRUBUTION & WAREHOUSING 2,1
Slide 7: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL – Demand Delivery PepsiCo – Demand Creation 25 yrs + Investment in Production Facilities – Association Owner of Trademarks Manufacturing plants Investment in R&D – Product & Sales & Distribution – Vehicles Packaging innovation
Slide 8: Chairman’s Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q1 CY2018, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said, “We are pleased to report that we have made a strong start to the year with a robust revenue growth of 24.5% and profit growth of 186.3%. This was led by
Slide 9: Key Developments - New Product Launches (1/2)
Key Developments - New Product Launches (1/2) (a PepsiCo franchisee) STING PEPSI BLACK TROPICANA* GATORADE* QUAKER MILK* Energy Drink Zero Calorie Drink Fruit Pulp / Juice Based Sports Drink Oats Milk based Drink Drink Available in 250ml Available in 250ml Tropicana Juices (100%, Available in 3 Avai
Slide 10: Key Developments - New Product Launches (2/2)
Key Developments - New Product Launches (2/2) (a PepsiCo franchisee) SLICE FIZZY DRINKS Carbonated Juice based Drinks Lemon & Lime Orange Clear Lemon Jeera Apple Guava Chilli Cream Soda 10 All flavours are available in 250 ml PET bottles at a MRP of Rs. 12
Slide 11: Key Developments – Capacity Expansion
Key Developments – Capacity Expansion (a PepsiCo franchisee) For CY2018: • Set up a new unit for manufacturing of Pepsi range of products at Harare, Zimbabwe; commercial production / operation has started with effect from February 19, 2018 • Company has set up a new unit for manufacturing of Pepsi r
Slide 12: Key Developments – PepsiCo in news
Key Developments – PepsiCo in news (a PepsiCo franchisee) “Tropicana is one of the fastest growing brands in our beverages portfolio. Due to growing per capita consumption of juices in India, the overall juices segment is also witnessing high growth rates. So we felt the time is right to expand the
Slide 13: Performance Highlights
Performance Highlights (a PepsiCo franchisee) Net Sales (adj.) EBITDA 5.0% PAT 345.6% 3.7% 7,960 8,358 2,141 38,612 40,034 Rs. million Rs. million Rs. million 24.5% 25.8% 186.3% 8,792 10,948 1,727 480 1,372 69 197 Q1 CY2017 Q1 CY2018 CY 2016 CY 2017 Q1 2017 Q1 2018 CY 2016 CY 2017 Q1 2017 Q1 2018 CY
Slide 14: Discussion on Financial & Operational Performance – Q1 CY2018
Discussion on Financial & Operational Performance – Q1 CY2018 (a PepsiCo franchisee) Revenues Sales Volumes • Revenue from operations (net of excise / GST) grew 24.5% • Total sales volumes were up 19.7% YoY at 80.4 million cases in YoY in Q1 CY2018 to Rs. 10,948 million led by strong volume Q1 CY201
Slide 15: Profit & Loss Statement
Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q1 2018 Q1 2017 YoY(%) CY 2017 CY 2016 YoY (%) 1. Income (a) Revenue from operations (refer slide-16) 11,223.73 10,508.87 6.8% 45,162.4 45,314.6 -0.3% (b) Other income 81.64 135.32 -39.7% 126.5 357.3 -64.6% Total income 11,305.
Slide 16: GST Impact on Sales from Operations
GST Impact on Sales from Operations (a PepsiCo franchisee) Consequent to the introduction of Goods and Service Tax (GST) with effect from July 01, 2017, Central Excise, Value Added Tax (VAT), etc. have been subsumed into GST. In accordance with Indian Accounting Standard - 18 on Revenue and Schedule
Slide 17: Financial Highlights (2013-17)
Financial Highlights (2013-17) (a PepsiCo franchisee) Revenue PAT PAT Margins CAGR – 17.3% 5.3% 3000 6% 40,034 Rs. million Rs. million 38,520 2500 2,141 33,491 3.9% 5% 2000 2.6% 1,513 25,097 4% 21,175 1500 870 3% 1000 500 -395 -201 2% 0 1% -500 0% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 EB
Slide 18: Broad-based Growth To Continue Across Soft Drink Categories in India
Broad-based Growth To Continue Across Soft Drink Categories in India (a PepsiCo franchisee) Global Markets - Per Capita Soft Drink Consumption VBL Markets - Per Capita Soft Drink Consumption (Per Capita bottles) (Per Capita bottles) CAGR CAGR 2016-21 15.1% 3.4% 1.8% 2.8% -0.1% 0.7% 3.3% 2016-21 15.1
Slide 19: 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 distribu
Slide 20: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited (VBL) Q1 CY2018 Earnings Conference Call Time • 4:00 pm IST on Friday, May 03, 2018 Conference dial-in Primary number • +91 22 6280 1141 / +91 22 7115 8042 Local access number • +91 70456 71221 International Toll Free Number • Ho
Slide 21: 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 22: Thank You!
Thank You!