Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q3 2019 Earnings Presentation
19 slides from Varun Beverages's earnings presentation, Nov 4, 2019
Slide 1: Regulation 30 filing cover letter to stock exchanges
Corporate Off : Plot No.31, Institutional Area, Sec.-44, Gurgaon, Haryana-122002 (India) 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 November 4, 2019 To, BSE Limited National Stock Exchange of India Lt
Slide 2: Q3 & 9M 2019 Results Presentation
November 04, 2019 (a PepsiCo franchisee) Varun Beverages Limited Q3 & 9M 2019 Results Presentation
Slide 3: Disclaimer
Disclaimer (a PepsiCo franchisee) This presentation has been prepared by Varun Beverages Limited (the “Company”) for general information purposes only and does not constitute any recommendation or form part of any offer or invitation, directly or indirectly, in any manner, or inducement to sell or i
Slide 4: Table of Content
Table of Content (a PepsiCo franchisee) 1 Company Overview 2 Chairman’s Message 3 Performance Highlights 4 Q3 & 9M 2019 Results Overview 5 Annexure 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 ~80% to revenues; 3 in Africa (Morocco, Zambia, Zimbabwe) contribute ~20% for fiscal year 2018 Over 27 years strategi
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 Fruit Pulp / Juice Based Drinks Coffee Sports Drink Packaged Water Belgian Choco Shake * Note: “Cream Be
Slide 7: 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 38 state-of-the-art production facilities SOLID INRASTRUCTURE 90+ depots DISTRUBUTION & WAREHOUSING 2,500+ o
Slide 8: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL – Demand Delivery PepsiCo – Demand Creation 27 yrs + Production Facilities Association Trademarks Sales & Distribution – GTM & Logistics Formulation through Concentrate In-outlet Management – Visi-Coolers Product & Packaging
Slide 9: Chairman’s Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q3 & 9M 2019, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said, “We are delighted to share that we have reported a robust performance in Q3 2019, delivering a topline growth of 49.2% and a PAT growth of 83.7%. The
Slide 10: Key Developments
Key Developments (a PepsiCo franchisee) 1. Acquisition of sub-territories February 14, 2019: Concluded the acquisition of PepsiCo India’s previously franchised territories of parts of Maharashtra (14 districts), parts of Karnataka (13 districts) and parts of Madhya Pradesh (3 districts). May 01, 201
Slide 11: Key Developments
Key Developments (a PepsiCo franchisee) 4. QIP Issue The Company has raised ~ Rs. 9,000 million through fresh issue of 14,705,882 equity shares of Rs. 10. The entire proceeds of the QIP, net of issue expenses of Rs. 164.36 million, were utilized for repayment of debts during Q3 2019. 5. Credit Ratin
Slide 12: Performance Highlights (Q3 & 9M 2019)
Performance Highlights (Q3 & 9M 2019) (a PepsiCo franchisee) Net Sales EBITDA 38.9% PAT 41.9% 36.8% 13,319 5,262 Rs. million Rs. million Rs. million 59,093 9,588 3,707 49.2% 83.7% 43,196 54.2% 22.2% 22.7% 17,397 3,257 11,657 2,112 811 442 18.1% 18.7% Q3 2018 Q3 2019 9M 2018 9M 2019 Q3 2018 Q3 2019 9
Slide 13: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q3 2019 Q3 2018 YoY(%) 9M 2019 9M 2018 YoY (%) 1. Income (a) Revenue from operations 17,768.6 12,044.7 47.5% 60,089.2 44,239.9 35.8% (b) Excise Duty 371.2 387.3 -4.2% 995.9 1,043.5 -4.6% Net Revenues 17,397.3 11,65
Slide 14: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Net Revenues / Sales Volumes • Total sales volumes were up 60.4% YoY at 124.5 million cases in Q3 2019 as compared to 77.6 million cases in Q3 2018. The organic volume growth is 20% supported by robust performance in India (Org
Slide 15: Performance Highlights (2014 – 2018)
Performance Highlights (2014 – 2018) (a PepsiCo franchisee) 6500 10% Revenue 59,093 PAT PAT Margins 5,262 51,053 5500 CAGR (2014-18) – 19.4% CAGR (2015-18) – 51.1% 8% 40,034 4500 38,520 8.9% Rs. million Rs. million 33,491 3500 2,999 6% 25,097 2500 2,141 1,513 5.9% 4% 1500 870 5.3% 3.9% 2% 500 2.6% 2
Slide 16: Outlook
Outlook (a PepsiCo franchisee) To periodically launch innovative Well-positioned to leverage products in select markets in line PepsiCo brand to increase with changing consumer market penetration in licensed preferences territories Focus on non-cola carbonated Consolidating existing beverage
Slide 17: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited (VBL) Q3 2019 Earnings Conference Call Time • 4:00 pm IST on Monday, November 04, 2019 Conference dial-in Primary number • +91 22 6280 1141 / +91 22 7115 8042 Local access number • +91 70456 71221 International Toll Free Number •
Slide 18: 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 19: Thank You!
Thank You!