Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q4 2022 Earnings Presentation
24 slides from Varun Beverages's earnings presentation, Feb 6, 2023
Slide 1: Filing cover letter to stock exchanges
J™ VARUn BEVERAGES LimfCED Corporate Off : Plot No.31, Institutional Area, Sec.-44, Gurgaon, Haryana-122002 (India) Ph.: +91-124-4643100-500 • Fax: +91-124-4643303/04 E-mail: info@rjcorp.in • Visit us at: www.varunpepsi.com CIN No. : L74899DL1995PLC069839 February 6, 2023 To, National Stock Exchange
Slide 2: Q4 & CY 2022 Results Presentation
February 6, 2023 (a PepsiCo franchisee) Varun Beverages Limited Q4 & 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 Q4 & 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 ~85% to revenues; 3 in Africa (Morocco, Zambia, Zimbabwe) contribute ~15% for fiscal year 2022 Over 31 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 Energy Drink Club Soda Carbonated Juice Based Drinks Cold Coffee Belgian Choco Fruit Pulp / Juice Based Drinks Ice Tea 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 31 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 Bottling 37 state-of-the-art production facilities (31 in India & SOLID INRASTRUCTURE (PepsiCo) Materials 6 in International territories) 1
Slide 9: Chairman’s Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q4 and CY2022, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said: “We are pleased to close the year on a strong note with exceptional operational and financial performance reported throughout CY2022. The strong reco
Slide 10: Key Developments
Key Developments (a PepsiCo franchisee) Commencement of Commercial Production of Kurkure Puffcorn • Reference co-manufacturing agreement dated 28th February 2022, the manufacturing plant in Kosi, Uttar Pradesh commenced commercial production of Kurkure Puffcorn for PepsiCo India Holdings Private Lim
Slide 11: Key Developments
Key Developments (a PepsiCo franchisee) Plant & Machinery Impairment / Write-off • With an objective of consolidating the manufacturing plants and improving operational efficiencies, during the year, the Company has written-off / impaired following assets – • Write-off of PPE (CSD Glass and Can line
Slide 12: Awards and Accolades
Awards and Accolades (a PepsiCo franchisee) PepsiCo’s Best Bottler in AMESA Indian Achievers’ Sector for the year 2021 Golden Peacock Award 2022 for Award Excellence Best Corporate in Corporate Governance Governance - 2021 CFI.CO (UK for Best Golden FMCG Corporate Peacock Governance National Quality
Slide 13: Results Overview
Results Overview (a PepsiCo franchisee) Net Sales 1,31,731 EBITDA PAT 27,881 15,501 49.3% 68.5% 107.8% 88,232 16,546 Rs. mn Rs. mn Rs. mn 27.7% 48.1% 7,461 21.2% 150.2% 22,142 17,343 3,075 18.8% 2,076 326 815 12.0% 13.9% Q4 2021 Q4 2022 2021 2022 Q4 2021 Q4 2022 2021 2022 Q4 2021 Q4 2022 2021 2022 Q
Slide 14: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q4 2022 Q4 2021 YoY(%) CY 2022 CY 2021 YoY (%) 1.Income (a) Revenue from operations 22,572.01 17,649.36 27.9% 133,905.58 89,582.91 49.5% (b) Excise Duty 429.66 306.01 40.4% 2,174.16 1,350.61 61.0% Net Revenues 22,1
Slide 15: Consolidated Balance Sheet
Consolidated Balance Sheet (a PepsiCo franchisee) Particulars (Rs million) 31-Dec-22 31-Dec-21 Particulars (Rs million) 31-Dec-22 31-Dec-21 Equity and liabilities Assets Equity Non-current assets (a) Equity share capital 6,495.50 4,330.33 (a) Property, plant and equipment 54,415.78 51,551.72 (b) Oth
Slide 16: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Sales Volumes/ Net Revenues • Sales volume grew by 17.8% to 132.0 million cases in Q4 CY2022. For CY 2022 total sales volume grew by 40.9% to 801.8 million cases supported by strong performance in India as well as International
Slide 17: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Debt • Net debt stood at Rs. 34,096 million as on Dec 31, 2022 as against Rs. 30,053 million as on Dec 31, 2021. Net debt increased on account of Greenfield expansion in Rajasthan and Madhya Pradesh and brownfield expansion at
Slide 18: Performance Highlights (CY2018 – CY2022)
Performance Highlights (CY2018 – CY2022) (a PepsiCo franchisee) REVENUE PAT CAGR (2018-22) – 26.7% Revenue CAGR (2018-22) – 50.8% PAT PAT Margins 1,31,731 15,501 15% Rs. mn Rs. mn 14,500 88,232 12,000 71,296 10% 64,501 9,500 7,461 11.8% 51,053 7,000 4,722 3,573 4,500 2,999 8.5% 5% 2,000 6.6% 5.9% 5.
Slide 19: Sustainability Initiatives - Water Stewardship
Sustainability Initiatives - Water Stewardship (a PepsiCo franchisee) Parameter (mn KL) CY2020 CY2021 CY2022 Water Recharge Ratio# Water Usage* Ratio(WUR)* Fresh Water Usage Details: Certified Certified Certified 2.72 Target Total water consumption (A) 3.74 4.86 6.32 2.28 min. 2.02 2.00 1.92 1.89 Be
Slide 20: 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 Closures for PET bottles. Phase- 52.5 50.7 Target 47.0 wise implementation of certain 100% SKUs
Slide 21: Sustainability Initiatives - Climate Action
Sustainability Initiatives - Climate Action (a PepsiCo franchisee) mn Kg CO2e Grams / litre* Reduction of Carbon emissions / litre GHG (base year – 2020) CY 2020 CY 2022 CY 2020 CY 2022 Emissions Scope 1 26.84 51.94 14.01 13.93 Scope 2 129.11 224.45 67.39 60.20 Scope 3 534.76 580.42 279.14 155.67 Ac
Slide 22: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited Q4 and CY 2022 Earnings Conference Call Time • Monday, February 6, 2023 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: 8
Slide 23: 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 24: Thank You!
Thank You!