Slide 1: Varun Beverages Limited Q4 & 2018 Results Presentation
February 20, 2019 (a PepsiCo franchisee) Varun Beverages Limited Q4 & 2018 Results Presentation
Slide 2: Disclaimer
Disclaimer (a PepsiCo franchisee) Certain statements in this communication may be ‘forward looking statements’ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ
Slide 3: Table of Content
Table of Content (a PepsiCo franchisee) 1 Company Overview 2 Chairman’s Message 3 Performance Highlights 4 Q4 & 2018 Results Overview 5 Annexure 3
Slide 4: 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 25 years strategi
Slide 5: Brands licensed by PepsiCo
Brands licensed by PepsiCo (a PepsiCo franchisee) Manufacturing & Distribution: Carbonated Soft Drinks Fruit Pulp / Juice Based Drinks Energy Drink Packaged Water Carbonated Juice Based Drinks Distribution: Fruit Pulp / Juice Based Drinks Sports Drink Dairy 5
Slide 6: Key Player in the Beverage Industry – Business Model
Key Player in the Beverage Industry – Business Model (a PepsiCo franchisee) UNDER VBL- END-TO-END EXECUTION ACROSS VALUE CHAIN MANUFACTURING EXISTING CONSOLIDATION Concentrate Other Raw 26 state-of-the-art 9 production facilities (PepsiCo) Materials Bottling SOLID INRASTRUCTURE production facili
Slide 7: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL – Demand Delivery PepsiCo – Demand Creation 25 yrs + Investment in Production Facilities – Association Owner of Trademarks Manufacturing plants Investment in R&D – Product & Sales & Distribution – Vehicles Packaging innovation
Slide 8: Chairman’s Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q4 & 2018, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said, “We have ended the year on a strong note delivering a robust topline growth of 49% and EBITDA growth of 47% in Q4. Organic volume growth in India was rob
Slide 9: Awards & Accolades
Awards & Accolades (a PepsiCo franchisee) Varun Beverages Ltd. - National Best Employer Brand Award for 2018, by ET Now in collaboration with World HRD Congress Varun Beverages Ltd. - WINNER of Special Commendation for Golden Peacock National Quality Award – 2019 Mr. Ravi Jaipuria - Distinguished En
Slide 10: Key Developments – Acquisition of sub-territories
Key Developments – Acquisition of sub-territories (a PepsiCo franchisee) 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) w.e.f. Februa
Slide 11: Performance Highlights (2013 – 2018)
Performance Highlights (2013 – 2018) (a PepsiCo franchisee) Revenue PAT PAT Margins 5.9% CAGR (2013-18) – 19.2% 51,053 CAGR (2012-18) – 51.2% 5.3% 2,999 3000 7% 40,034 3.9% Rs. million Rs. million 38,520 2500 2,141 6% 33,491 2000 2.6% 1,513 5% 25,097 1500 1.5% 4% 21,175 870 1000 3% 500 251 -395 -201
Slide 12: Performance Highlights (Q4 & 2018)
Performance Highlights (Q4 & 2018) (a PepsiCo franchisee) Net Sales (adj.) EBITDA* 20.4% PAT 40.1% 27.5% 10,066 2,999 51,053 Rs. million Rs. million Rs. million 8,358 40,034 2,141 49.0% 46.6% 1.8% 20.9% 19.7% 7,856 -721 -708 5,274 326 478 Q4 2017 Q4 2018 2017 2018 Q4 2017 Q4 2018 2017 2018 Q4 2017 Q
Slide 13: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q4 2018 Q4 2017 YoY(%) 2018 2017 YoY (%) 1. Income (a) Revenue from operations 8,041.4 5,433.2 48.0% 52,281.3 45,162.4 15.8% (b) Excise Duty 185.2 159.6 16.0% 1,228.7 5,128.4 -76.0% Net Revenues 7,856.2 5,273.6 49.
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet (a PepsiCo franchisee) Particulars (Rs million) 31-Dec-18 31-Dec-17 Particulars (Rs million) 31-Dec-18 31-Dec-17 Equity and liabilities Assets Equity Non-current assets (a) Equity share capital 1,826.42 1,825.87 (a) Property, plant and equipment 38,601.77 35,411.66 (b) Oth
Slide 15: 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 27.5% YoY in 2018 to Rs. 51,052.5 million led by robust volume growth of 21.9% and value growth of ~ 5.6%. Introduction of higher realization pro
Slide 16: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Debt / Credit Rating • Net debt stood at Rs. 26,715 million as on Dec 31, 2018 as against Rs. 25,572 million as on Dec 31, 2017. Net Debt as on 2018 includes the debt of Rs. 4,000 million availed for Pathankot facility expected
Slide 17: Outlook
Outlook (a PepsiCo franchisee) To periodically launch innovative Well-positioned to leverage PepsiCo products in select markets in line with brand to increase market changing consumer preferences penetration in licensed territories Focus on non-cola carbonated Consolidating existing distribu
Slide 18: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited (VBL) Q4 & 2018 Earnings Conference Call Time • 4:00 pm IST on Wednesday, February 20, 2019 Conference dial-in Primary number • +91 22 6280 1141 / +91 22 7115 8042 Local access number • +91 70456 71221 International Toll Free Num
Slide 19: 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 20: Thank You!
Thank You!