Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q1 CY2022 Earnings Presentation
20 slides from Varun Beverages's earnings presentation, Apr 28, 2022
Slide 1: Exchange filing cover letter
corp vflRun beverages liitiiced © C o rpora te O f f : Plot No.31, Institutional A rea, 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 a t : www.varunpepsi.com CIN No. : L74899DL1995PLC069839 April 28, 2022 To, Natio
Slide 2: Q1 CY 2022 Results Presentation
April 28, 2022 (a PepsiCo franchisee) Varun Beverages Limited Q1 CY 2022 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 Content
Table of Content (a PepsiCo franchisee) 1 Company Overview 2 Chairman’s Message 3 Q1 CY2022 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 ~81% to revenues; 3 in Africa (Morocco, Zambia, Zimbabwe) contribute ~19% for fiscal year 2021 Over 30 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 Carbonated Juice Based Drinks Energy Drink Club Soda Ice Tea Cold Coffee Belgian Choco Fruit Pulp / Juice Based Drinks 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 30 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 (PepsiCo) Materials Bottling 37 state-of-the-art production facilities SOLID INRASTRUCTURE 100+ depots DISTRUBUTION & WAREHOUSING 2,000+
Slide 9: Chairman’s Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q1 CY2022, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said, “We have started the year on a strong note, delivering notable growth across all parameters. Robust demand in both domestic and international markets, al
Slide 10: Key Developments
Key Developments (a PepsiCo franchisee) Commencement of Commercial Production in Bihar & Jammu • During Q1 CY 2022, the new beverage manufacturing plant in Bihar and the new backward integration plant in Jammu & Kashmir commenced commercial production. Co-Packing Agreement for “Kurkure Puffcorn” • D
Slide 11: Results Overview
Results Overview (a PepsiCo franchisee) Net Sales EBITDA 37.7% PAT 108.8% 36.8% 16,546 7,461 88,232 98.2% Rs. million Rs. million Rs. million 12,019 64,501 39.1% 26.2% 3,573 5,310 2,711 3,816 22,409 28,275 1,368 18.6% 18.8% 17.0% 18.8% Q1 2021 Q1 2022 2020 2021 Q1 2021 Q1 2022 2020 2021 Q1 2021 Q1 2
Slide 12: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q1 2022 Q1 2021 YoY(%) CY 2021 CY 2020 YoY (%) 1. Income (a) Revenue from operations 28,674.77 22,698.77 26.3% 89,582.91 65,557.91 36.6% (b) Excise Duty 400.05 289.85 38.0% 1,350.61 1,056.49 27.8% Net Revenues 28,2
Slide 13: 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 by 26.2% YoY in Q1 CY2022 to Rs. 28,274.7 million driven by robust volume growth and increase in net realization. • Total sales volume grew by 18
Slide 14: Performance Highlights (2017 – 2021)
Performance Highlights (2017 – 2021) (a PepsiCo franchisee) Revenue PAT PAT Margins 88,232 8,500 15% CAGR (2017-21) – 21.8% 7,461 71,296 7,500 CAGR (2017-21) – 36.6% 13% Rs. million Rs. million 64,501 6,500 11% 51,053 5,500 4,722 9% 40,034 4,500 3,573 2,999 8.5% 7% 3,500 2,141 6.6% 5% 2,500 5.9% 5.5
Slide 15: Sustainability Initiatives - Water Stewardship
Sustainability Initiatives - Water Stewardship (a PepsiCo franchisee) Parameter (mn KL) CY2019 CY2020 CY2021 Water Recharge Ratio# Water Usage Ratio(WUR)* Audited Audited Audited 2.72 Target Total water consumption (A) 4.12 3.74 4.86 2.28 min. Beverage production (B) 2.12 1.95 2.57 2.00 1.94 1.92 Wa
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 Target for a non-COVID year – Closures for PET bottles. Phase- 52.5 50.7 47.0 2023 onwards wise
Slide 17: Sustainability Initiatives - Climate Action
Sustainability Initiatives - Climate Action (a PepsiCo franchisee) Million Kg CO2e Grams / litre* Energy Efficiency GHG emissions are audited by Deutsch Quality Systems (litre/kWh) GHG CY 2020 CY 2021 CY 2020 CY 2021 (India) Private Limited (DQS Emissions India), an Internationally 6.7% Scope 1 23.9
Slide 18: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited Q1 CY 2022 Earnings Conference Call Time • Thursday, April 28, 2022 at 4:00 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 1
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!