Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q4 2024 Earnings Presentation
24 slides from Varun Beverages's earnings presentation, Feb 10, 2025
Slide 1: Cover letter to stock exchanges
February 10, 2025 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: 5401
Slide 2: Q4 & CY2024 Results Presentation
February 10, 2025 (a PepsiCo franchisee) Varun Beverages Limited Q4 & 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 Company Overview Chairman’s Message Q4 & CY2024 Results Overview Performance Highlights Sustainability Initiatives 3
Slide 5: Company Snapshot
Company Snapshot Key player in the global beverage industry and the second largest franchisee of PepsiCo in the world (outside US) with operations spanning across 10 countries with franchise rights and additional 4 countries with distribution rights. Total Sales Volumes (mn Cases*) On 27th March, 20
Slide 6: Complete Brand Portfolio
Complete Brand Portfolio Brands licensed by PepsiCo: Own Brands^: Carbonated Soft Drinks Club Soda Carbonated Soft Drinks Fruit Pulp / Juice Based Drinks Energy Drink Energy Drink Sports Drink Carbonated Juice Ice Tea Packaged Water Packaged Water Based Drinks Snacks# Dairy Based Beverages* # Manufa
Slide 7: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo Demand Delivery Demand Creation • Production Facilities 33+ • Trademarks • Sales & Distribution – Years of Association • Formulation through (agreement in India valid till April, 2039) GTM & Logistics Concentrate • In-outlet Management – Visi-Coolers 90%+ • Produc
Slide 8: Key Player in the Beverage Industry – Business Model
Key Player in the Beverage Industry – Business Model MANUFACTURING ▪ 48 state-of-the-art production facilities SOLID INRASTRUCTURE VBL- END-TO-END EXECUTION ACROSS VALUE CHAIN Concentrate Other Raw Bottling ▪ 36 in India & 12 in International territories (PepsiCo) Materials ▪ 130+ depots ▪ 2,800+ pr
Slide 9: Chairman’s Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q4 & CY2024, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said: “We are pleased to conclude CY2024 on a strong note through adding geographical presence into new territories of South Africa along with distribution r
Slide 10: Key Developments
Key Developments (a PepsiCo franchisee) 1. Acquisition of South Africa and neighboring territories: ▪ On 26 March 2024, consummated the acquisition of The Beverage Company (Proprietary) Limited, South Africa along-with its wholly-owned subsidiaries ("BevCo"). Accordingly, Bevco became the subsidiary
Slide 11: Key Developments
Key Developments (a PepsiCo franchisee) 4. Commencement of Commercial Production at 4 Greenfield facilities: ▪ For CY2024 season, we commissioned 3 new greenfield production facilities with backward integration in India at Supa; Maharashtra, Gorakhpur; Uttar Pradesh and Khordha; Odisha and 1 new gre
Slide 12: Results Overview
Results Overview (a PepsiCo franchisee) 24.7% PAT 25.3% Revenue EBITDA 30.5% 200,077 26,343 47,111 160,426 21,018 36,095 Rs. mn Rs. mn Rs. mn 38.3% 23.5% 38.7% 36.1% 36,888 22.5% 26,677 4,183 5,800 1,438 1,956 15.7% 15.7% Q4 2023 Q4 2024 CY 2023 CY 2024 Q4 2023 Q4 2024 CY 2023 CY 2024 Q4 2023 Q4 202
Slide 13: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q4 2024 Q4 2023 YoY(%) CY 2024 CY 2023 YoY (%) 1.Income (a) Revenue from operations 38,176.15 27,309.82 39.8% 204,813.28 163,210.63 25.5% (b) Excise Duty 1,288.23 632.93 103.5% 4,736.78 2,784.82 70.1% Net Revenues
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet (a PepsiCo franchisee) Particulars (Rs million) 31-Dec-24 31-Dec-23 Particulars (Rs million) 31-Dec-24 31-Dec-23 Equity and liabilities Assets Equity Non-current assets (a) Equity share capital 6,763.02 6,496.07 (b) Other equity 159,335.27 62,868.91 (a) Property, plant and
Slide 15: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Sales Volumes / Net Revenues • During CY2024. consolidated sales volume grew by 23.2% to 1,124.4 million cases from 912.9 million cases in CY2023. • For CY24, organic volume growth in India stood at 11.4% and for International
Slide 16: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) PAT • On standalone basis, the other income stood at Rs. 3,539.3 million on account of receipt of dividend of Rs. 1,316.0 million from Nepal and a maiden dividend from Sri Lanka, interest on loan to subsidiaries of Rs. 967.8 mi
Slide 17: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Asset Capitalization • During CY2024, the net assets capitalized amounted to ~Rs. 45,000 million (out of which ~Rs. 24,000 million was spent in CY2023) which includes – • Setting up of 4 greenfield production facilities for Rs.
Slide 18: Performance Highlights (CY2019 – CY2024)
Performance Highlights (CY2019 – CY2024) (a PepsiCo franchisee) REVENUE EBITDA EBITDA EBITDA Margins (%) CAGR (2019-24) – 22.9% CAGR (2019-24) – 26.6% 200 55.00 30% 160 22.5% 23.5% 45.00 20.3% 21.2% 25% 132 18.6% 18.8% 35.00 20% 88 71 65 25.00 47 15% 15.00 36 10% 28 Rs. bn Rs. bn 5.00 14 12 17 5% (5
Slide 19: SUSTAINABILITY – Being Water Positive
SUSTAINABILITY – Being Water Positive (CDP water rating: A-) Increase ground water level 2x Reduce water usage (WUR) WRR -35% by 2025 Water consumed Per liter of beverage produced * Steady state WUR was 1.54 times in 2023 and 1.50 times in 2024, the differential is on account of stabilization of 2 n
Slide 20: SUSTAINABILITY – Reducing Carbon Footprint
SUSTAINABILITY – Reducing Carbon Footprint (CDP climate rating: A) 30% Net Zero Increase Renewable Energy by 2030 Reduce GHG Emissions by 2050 Solar (Rooftop + Captive Power Solution) & Windmill Emissions Kg CO2 e/Litre RE Mix % & kWh million units 0.32 0.23 125 0.20 79 (16%) 0.18 58 0.16 21 (13%) 1
Slide 21: SUSTAINABILITY – Robust Packaging & Plastic Recycling
SUSTAINABILITY – Robust Packaging & Plastic Recycling Increase Plastic Waste Recycle Reduce Plastic Usage Ahead of EPR Regulations Packaging rationalization 100% • Removal of pads (20k MT of paper 86% 88% saving, equivalent to 400k trees) 70% 80% • Shrink film and label rationalization (1.4 MT of ma
Slide 22: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited Q4 & CY2024 Earnings Conference Call Time • Monday, February 10, 2025 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 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!