Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q2 & H1 CY2024 Earnings Presentation
23 slides from Varun Beverages's earnings presentation, Jul 30, 2024
Slide 1: Cover letter to stock exchanges
July 30, 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: 540180 S
Slide 2: Q2 & H1 CY2024 Results Presentation
July 30, 2024 (a PepsiCo franchisee) Varun Beverages Limited Q2 & H1 CY2024 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 Contents
Table of Contents (a PepsiCo franchisee) 1 Company Overview 2 Chairman’s Message 3 Q2 & H1 CY2024 Results Overview 4 Performance Highlights 5 Sustainability Initiatives 3
Slide 5: Company Snapshot
Company Snapshot (a PepsiCo franchisee) Key player in the global beverage industry with operations spanning across 10 countries with franchise rights and additional 4 countries with distribution rights. For fiscal year 2023, 3 territories in the Indian Subcontinent (India, Sri Lanka, Nepal) cont
Slide 6: Brand Portfolio
Brand Portfolio (a PepsiCo franchisee) Brands licensed by PepsiCo: Own Brands^: Carbonated Soft Drinks Club Soda Carbonated Soft Drinks Energy Drink Fruit Pulp / Juice Based Drinks Energy Drink Sports Drink Carbonated Ice Tea Packaged Water Packaged Water Juice Based Drinks Snacks# Dairy Based Bever
Slide 7: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL – Demand Delivery PepsiCo – Demand Creation 32 yrs + Association ▪ Production Facilities ▪ 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 ▪ 48 state-of-the-art production facilities (PepsiCo) Materials Bottling ▪ 36 in India & 12 in International territories SOLID INRASTRUCTURE ▪
Slide 9: Chairman’s Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q2 & H1 CY2024, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said: “We are pleased to report robust performance for the second quarter of CY2024, achieving a consolidated sales volume growth of 28.1%, which includes
Slide 10: Key Developments
Key Developments (a PepsiCo franchisee) 1. Commencement of Commercial Production at Kinshasa, Democratic Republic of Congo : ▪ Commenced commercial production of carbonated soft drinks and packaged drinking water at our production facility in Kinshasa, Democratic Republic of Congo on 22nd July, 2024
Slide 11: Key Developments
Key Developments (a PepsiCo franchisee) 3. Sub-division/split of existing equity shares of the Company : ▪ The Board considered and recommended sub-division/split of existing equity shares of the Company from 1 (one) equity share having face value of Rs. 5 each, fully paid-up, into such number of eq
Slide 12: Results Overview
Results Overview (a PepsiCo franchisee) 29.1% PAT 25.3% Revenue EBITDA 21.1% 29,800 18,098 31.8% 25.5% 1,15,142 23,091 28.3% 14,440 95,044 19,912 12,618 Rs. mn Rs. mn Rs. mn 71,969 15,110 10,054 56,114 25.9% 24.3% 26.9% 27.7% Q2 2023 Q2 2024 H1 2023 H1 2024 Q2 2023 Q2 2024 H1 2023 H1 2024 Q2 2023 Q2
Slide 13: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q2 2024 Q2 2023 YoY(%) H1 2024 H1 2023 YoY (%) 1.Income (a) Revenue from operations 73,336.72 56,997.34 28.7% 117,316.52 96,523.25 21.5% (b) Excise Duty 1,368.10 883.32 54.9% 2,174.77 1,479.48 47.0% Net Revenues 71
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet (a PepsiCo franchisee) Particulars (Rs million) 30-Jun-24 30-Jun-23 Particulars (Rs million) 30-Jun-24 30-Jun-23 Equity and liabilities Assets Equity Non-current assets (a) Equity share capital 6,497.20 6,495.68 (a) Property, plant and equipment 96,294.01 69,858.39 (b) Oth
Slide 15: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Sales Volumes / Net Revenues • Consolidated sales volume grew by 28.1% to 401.6 million cases in Q2 CY2024 from 313.5 million cases in Q2 CY2023. This includes ~ 28 million cases from BevCo during the quarter. • India volumes g
Slide 16: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Debt • Net debt stood at Rs. 58,808 mn as on Jun 30, 2024 as against Rs. 47,345 mn as on Dec 31, 2023. • During H1 2024, the Company spent ~ Rs. 12,000 mn on capex of CY2024, ~ Rs. 6,000 mn for capex of CY2025, acquired BevCo f
Slide 17: Performance Highlights (CY2018 – CY2023 & H1 CY2024)
Performance Highlights (CY2018 – CY2023 & H1 CY2024) (a PepsiCo franchisee) REVENUE PAT Revenue PAT PAT Margins CAGR (2018-23) – 25.7% 28,000 CAGR (2018-23) – 47.6% 20.0% 1,60,426 24,500 21,018 Rs. mn Rs. mn 1,31,731 21,000 18,098 15.0% 1,15,142 17,500 15,501 88,232 15.7% 71,296 14,000 10.0% 64,501
Slide 18: Sustainability Initiatives - Water Stewardship
Sustainability Initiatives - Water Stewardship (a PepsiCo franchisee) Parameter (mn KL) CY2021 CY2022 CY2023 Water Recharge Ratio# Water Usage* Ratio(WUR)* Fresh Water Usage Details: Certified Certified Certified 2.28 Target min. Total water consumption (A) 4.86 6.32 6.39 2.02 2.02 2.00 1.89 Beverag
Slide 19: 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 Target 52.5 light weighting of Preforms and 50.7 100% 47.0 Closures for PET bottles. 86% 80% 36.0 34.7 34.7 32.5 70% 30.7 66% 2
Slide 20: Sustainability Initiatives - Climate Action
Sustainability Initiatives - Climate Action (a PepsiCo franchisee) mn Kg CO2e Grams / litre* Reduction of Carbon emissions / litre (base year – 2020) GHG CY 2020 CY 2023 CY 2020 CY 2023 Emissions Scope 1 26.84 42.93 14.01 10.36 Scope 2 129.11 210.41 67.39 50.79 Scope 3 534.76 581.93 279.14 140.47 To
Slide 21: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited Q2 & H1 CY2024 Earnings Conference Call Time • Tuesday, July 30, 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: 800
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!
Varun Beverages — Q2 & H1 CY2024 Earnings Presentation on 6ix