Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q4 2020 Earnings Presentation
23 slides from Varun Beverages's earnings presentation, Feb 16, 2021
Slide 1: Exchange filing cover letter
tlcorp VRRUHBEVERAGES LffTlfCED Corporate Off : Plot No.31, Institutional Area, Sec.-44, Gurgaon, Haryana-122002 (India) e Ph.: +91-124-4643100-500 • Fax: +91-124-4643303/04 E-m ail: info@rjcorp.in • Visit us a t : www.varunpepsi.com CIN No. : L74899DL1995PLC069839 February 16, 2021 To National Stoc
Slide 2: Q4 & CY 2020 Results Presentation
February 16, 2021 (a PepsiCo franchisee) Varun Beverages Limited Q4 & CY 2020 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 Q4 & CY 2020 Results Overview 4 Sustainability Initiatives 5 Performance Highlights 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 2020 Over 29 years st
Slide 6: Brands licensed to VBL
Brands licensed to VBL (a PepsiCo franchisee) Brands licensed by PepsiCo: Dairy Based Drinks * Carbonated Soft Drinks Mango Shake Carbonated Juice Based Drinks Energy Drink Club Soda Ice Tea Cold Coffee Fruit Pulp / Juice Based Drinks Sports Drink Packaged Water Belgian Choco Shake * Note: “CreamBel
Slide 7: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL – Demand Delivery PepsiCo – Demand Creation 29 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 90+ depots DISTRUBUTION & WAREHOUSING 2,500+ o
Slide 9: Chairman's Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q4 & CY 2020, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said, “We have ended the year 2020 on a steady note despite unprecedented macro-economic challenges. The spread of the COVID-19 pandemic in early March 2020
Slide 10: Awards & Accolades
Awards & Accolades (a PepsiCo franchisee) Varun Beverages Ltd. – Bottler of the year, 2019 by Varun Beverages Ltd. –Winner of Best PepsiCo in AMESA sector (Africa, Middle East and FMCG Corporate Governance India South Asia) received in 2020 2020 awarded by CFI 9
Slide 11: New Product Launch – Mountain Dew Ice
New Product Launch – Mountain Dew Ice (a PepsiCo franchisee) • Lemon fruit juice based drink • Launched in Feb’21 • 2 SKUs • 250 ml PET • 600 ml PET 10
Slide 12: Key Developments
Key Developments (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 115BAA in the Income Tax Act,1961 which provides domestic companies a non-reversible option to pay corp
Slide 13: Performance Highlights (Q4 & CY 2020 and CY 2019)
Performance Highlights (Q4 & CY 2020 and CY 2019) (a PepsiCo franchisee) Net Sales EBITDA PAT (24.3%) (9.5%) (17.0%) 4,722 9.1% 71,296 48.8% 3,573 64,501 14,477 Rs. million Rs. million Rs. million 12,019 20.3% 12,202 13,309 1,158 1,722 18.6% 9.5% 12.9% -72 -540 Q4 2019 Q4 2020 2019 2020 Q4 2019 Q4 2
Slide 14: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q4 2020 Q4 2019 YoY(%) 2020 2019 YoY (%) 1. Income (a) Revenue from operations 13,513.4 12,395.4 9.0% 65,557.9 72,484.6 -9.6% (b) Excise Duty 204.5 192.9 6.0% 1,056.5 1,188.8 -11.1% Net Revenues 13,308.9 12,202.5 9
Slide 15: Consolidated Balance Sheet
Consolidated Balance Sheet (a PepsiCo franchisee) Particulars (Rs. million) 31-Dec-20 31-Dec-19 Particulars (Rs. million) 31-Dec-20 31-Dec-19 Equity and liabilities Assets Equity Non-current assets (a) Equity share capital 2,886.9 2,886.9 (a) Property, plant and equipment 58,271.9 58,925.0 (b) Other
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 by 9.1% YoY in Q4 2020 to Rs. 13,308.9 million. With faster-than-expected recovery witnessed across the territories, VBL managed to close the pan
Slide 17: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Debt / Credit Rating • Net debt stood at Rs. 30,158 million as on Dec 31, 2020 as against Rs. 32,461 million as on Dec 31, 2019. Debt : Equity ratio stood at 0.84x and Debt : EBITDA ratio stood at 2.51x as on Dec 31, 2020. • CR
Slide 18: Sustainability Initiatives – PET Recycling
Sustainability Initiatives – PET Recycling (a PepsiCo franchisee) VBL consumed ~ 66,000 MT PET for its finished product in CY20. These are high quality food grade virgin PET chips which can be easily recycled to make various products for diverse industries and end uses. VBL has engaged with GEM Envi
Slide 19: 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 Parameter Jan’20-Dec’20 Jan’19-Dec’19 footprint assurance. wherein, water mass balance and its (Provisional) (Audited) various initiatives
Slide 20: Performance Highlights (2016–2020)
Performance Highlights (2016 –2020) (a PepsiCo franchisee) Revenue PAT PAT Margins 71,296 5,500 15% CAGR (2016-20) – 13.8% 64,501 4,722 CAGR (2016-20) – 24.0% 13% 4,500 Rs. million Rs. million 51,053 3,573 2,999 11% 38,520 40,034 3,500 9% 2,500 2,141 7% 1,513 5% 1,500 6.6% 5.3% 5.9% 5.5% 3% 500 3.9%
Slide 21: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited (VBL) Q4 & CY 2020 Earnings Conference Call Time • 04:00 pm IST on Tuesday, February 16, 2021 Conference dial-in Primary number • +91 22 6280 1141 / +91 22 7115 8042 Local access number • +91 70456 71221 International Toll Free N
Slide 22: 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 23: Thank You!
Thank You!