Varun Beverages Ltd. · NSE:VBL

Varun Beverages — Q3 2024 Earnings Presentation

20 slides from Varun Beverages's earnings presentation, Oct 22, 2024

  1. Slide 1: Exchange filing cover letter under Regulation 30

    October 22, 2024 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

  2. Slide 2: Varun Beverages Limited Q3 & 9M CY2024 Results Presentation

    October 22, 2024 (a PepsiCo franchisee) Varun Beverages Limited Q3 & 9M CY2024 Results Presentation

  3. 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

  4. Slide 4: Table of Contents

    Table of Contents Company Overview Chairman’s Message Q3 & 9M CY2024 Results Overview Performance Highlights Sustainability Initiatives 3

  5. Slide 5: Company Snapshot

    Company Snapshot Key player in the global beverage industry and the second largest franchisee of PepsiCo in the world (outside US) with operations spanning across 10 countries with franchise rights and additional 4 countries with distribution rights. Total Sales Volumes (mn Cases*) On 27th March, 20

  6. Slide 6: Complete Brand Portfolio

    Complete Brand Portfolio Brands licensed by PepsiCo: Own Brands^: Carbonated Soft Drinks Club Soda Carbonated Soft Drinks Fruit Pulp / Juice Based Drinks Energy Drink Energy Drink Sports Drink Carbonated Juice Ice Tea Packaged Water Packaged Water Based Drinks Snacks# Dairy Based Beverages* # Manufa

  7. Slide 7: Symbiotic Relationship with PepsiCo

    Symbiotic Relationship with PepsiCo Demand Delivery Demand Creation • Production Facilities 32+ • Trademarks • Sales & Distribution – Years of Association • Formulation through (agreement in India valid till April, 2039) GTM & Logistics Concentrate • In-outlet Management – Visi-Coolers 90%+ • Produc

  8. Slide 8: Key Player in the Beverage Industry – Business Model

    Key Player in the Beverage Industry – Business Model MANUFACTURING ▪ 48 state-of-the-art production facilities SOLID INRASTRUCTURE VBL- END-TO-END EXECUTION ACROSS VALUE CHAIN Concentrate Other Raw Bottling ▪ 36 in India & 12 in International territories (PepsiCo) Materials ▪ 130+ depots DISTRIBUTIO

  9. Slide 9: Chairman's Message

    Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q3 & 9M CY2024, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said: “We are pleased to report another strong quarter, despite the challenges posed by excessive rainfall in India. We achieved consolidated revenue grow

  10. Slide 10: Key Developments

    Key Developments (a PepsiCo franchisee) 1. Proposed Qualified Institutions Placement (QIP) Issue: ▪ The Board of Directors of the Company approved the proposal for "raising of funds by way of issuance of equity shares for an aggregate amount not exceeding Rs 7,500 crore through QIP subject to receip

  11. Slide 11: Results Overview

    Results Overview (a PepsiCo franchisee) 22.0% 24.5% Revenue 163,189 EBITDA 29.5% PAT 24,386 133,749 41,311 19,581 31,912 24.1% Rs. mn Rs. mn Rs. mn 30.5% 22.3% 25.3% 48,047 11,511 6,288 38,705 8,821 23.9% 5,141 24.0% 22.8% Q3 2023 Q3 2024 9M 2023 9M 2024 Q3 2023 Q3 2024 9M 2023 9M 2024 Q3 2023 Q3 20

  12. Slide 12: Consolidated Profit & Loss Statement

    Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q3 2024 Q3 2023 YoY(%) 9M 2024 9M 2023 YoY (%) 1.Income (a) Revenue from operations 49,320.61 39,377.56 25.3% 166,637.13 135,900.81 22.6% (b) Excise Duty 1,273.78 672.41 89.4% 3,448.55 2,151.89 60.3% Net Revenues 4

  13. Slide 13: Discussion on Financial & Operational Performance

    Discussion on Financial & Operational Performance (a PepsiCo franchisee) Sales Volumes / Net Revenues • Consolidated sales volume grew by 21.9% to 267.5 million cases in Q3 CY2024 from 219.5 million cases in Q3 CY2023. This includes ~34 million cases from BevCo and DRC during the current quarter. •

  14. Slide 14: Performance Highlights (CY2018 – CY2023 & 9M CY2024)

    Performance Highlights (CY2018 – CY2023 & 9M CY2024) (a PepsiCo franchisee) REVENUE EBITDA EBITDA EBITDA Margins (%) CAGR (2018-23) – 25.7% CAGR (2018-23) – 29.1% 160 163 41 50.00 30% 132 40.00 36 25% 88 28 20% 71 30.00 25.3% 65 22.5% 15% 51 20.00 14 17 12 21.2% 10% 10 Rs. bn 20.3% Rs. bn 10.00 19.7

  15. Slide 15: SUSTAINABILITY – Being Water Positive

    SUSTAINABILITY – Being Water Positive Increase ground water level 2x Reduce water usage (WUR) WRR -35% by 2025 Per liter of beverage produced 151 Water bodies (ponds & check dams) maintained 1.89 1.70 1.54 1.48 1.40 2021 2022 2023 2024E 2025 Target Using only half of recharged water for manufacturin

  16. Slide 16: SUSTAINABILITY – Reducing Carbon Footprint

    SUSTAINABILITY – Reducing Carbon Footprint 30% Net Zero Increase Renewable Energy by 2030 Reduce GHG Emissions by 2050 Solar (Rooftop + Captive Power Solution) & Windmill Emissions Kg CO2 e/Litre RE Mix % & kWh million units 102 0.32 0.23 (24%) 75 0.20 (15%) 0.18 58 0.16 21 (13%) 18 (6%) (7%) 2021 2

  17. Slide 17: SUSTAINABILITY – Robust Packaging & Plastic Recycling

    SUSTAINABILITY – Robust Packaging & Plastic Recycling Increase Plastic Waste Recycle Reduce Plastic Usage Ahead of EPR Regulations 100% Packaging rationalization 86% 88% In some CSD packs (since Sep’23) 70% 80% ( ~26K MT of paper reduction, equivalent to 500k trees) Closures by 20-25% CSD/Juices/Wat

  18. Slide 18: Conference Call Details

    Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited Q3 & 9M CY2024 Earnings Conference Call Time • Tuesday, October 22, 2024 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:

  19. 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

  20. Slide 20: Thank You!

    Thank You!

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