Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q3 2020 Earnings Presentation
18 slides from Varun Beverages's earnings presentation, Nov 3, 2020
Slide 1: Regulation 30 filing cover letter to stock exchanges
JE^orp V flR lifl BEVERAGES LltTUCGD © 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 3, 2020 To BSE Limit
Slide 2: Varun Beverages Limited Q3 & 9M CY 2020 Results Presentation
November 03, 2020 (a PepsiCo franchisee) Varun Beverages Limited Q3 & 9M CY 2020 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) and/ or the industry in which it operates. Such forward-looking statements involve a number of risks
Slide 4: Table of Content
Table of Content (a PepsiCo franchisee) 1 Company Overview 2 Chairman’s Message 3 Q3 & 9M CY 2020 Results Overview 4 Sustainability Initiatives 5 Performance Highlights 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 2019 Over 28 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: “CreamBel
Slide 7: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL – Demand Delivery PepsiCo – Demand Creation 28 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 (PepsiCo) Materials Bottling 37 state-of-the-art production facilities SOLID INRASTRUCTURE 90+ depots DISTRUBUTION & WAREHOUSING 2,500+ o
Slide 9: Chairman's Message
Chairman’s Message (a PepsiCo franchisee) Commenting on the performance for Q3 & 9M CY 2020, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said, We are pleased to report steady results during the quarter supported by higher mix of better realization products and rationalized trade promotions
Slide 10: Performance Highlights (Q3 & 9M CY 2020 and CY 2019)
Performance Highlights (Q3 & 9M CY 2020 and CY 2019) (a PepsiCo franchisee) Net Sales (13.4%) EBITDA (22.7%) PAT (30.7%) 13,319 5,262 3.6% 16.9% 99.0% Rs. million Rs. million Rs. million 59,093 10,296 51,193 3,645 20.2% 18,026 3,257 3,808 1,615 17,397 22.5% 811 21.1% 18.7% Q3 2019 Q3 2020 9M 2019 9M
Slide 11: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q3 2020 Q3 2019 YoY(%) 9M 2020 9M 2019 YoY (%) 1. Income (a) Revenue from operations 18,395.1 17,768.6 3.5% 52,044.5 60,089.2 -13.4% (b) Excise Duty 368.8 371.2 -0.7% 852.0 995.9 -14.4% Net Revenues 18,026.3 17,397
Slide 12: 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 by 3.6% YoY in Q3 2020 to Rs. 18,026.3 million. Realization per case improved by ~8.0% in Q3 2020 essentially on account of higher mix of CSD and
Slide 13: Sustainability Initiatives – PET Recycling
Sustainability Initiatives – PET Recycling (a PepsiCo franchisee) VBL uses ~ 66,000 MT PET resin as packaging material for its finished product annually. These are high quality food grade virgin PET chips which can be easily recycled to make various products for diverse industries and end uses. VBL
Slide 14: Sustainability Initiatives – VBL's Water Positive Balance
Sustainability Initiatives – VBL’s Water Positive Balance (a PepsiCo franchisee) Key findings of the report: VBL engaged TUV India Pvt. Ltd. for company’s water footprint Parameter Apr’18-Mar’19 Jan’19-Dec’19 assurance. wherein, water mass balance and its various (Audited) (Audited) initiatives towa
Slide 15: Performance Highlights (2015 – 9M 2020)
Performance Highlights (2015 – 9M 2020) (a PepsiCo franchisee) 5500 15% Revenue 71,296 PAT PAT Margins4,722 13% CAGR (2015-19) – 20.8% 4500 CAGR (2015-19) – 52.6% 3,645 51,053 51,193 11% Rs. million Rs. million 3500 2,999 38,520 40,034 9% 33,491 2,141 2500 7% 1,513 6.6% 7.1% 5% 1500 5.9% 870 5.3% 3.
Slide 16: Conference Call Details
Conference Call Details (a PepsiCo franchisee) Varun Beverages Limited (VBL) Q3 & 9M CY 2020 Earnings Conference Call Time • 4:00 pm IST on Tuesday, November 03, 2020 Conference dial-in Primary number • +91 22 6280 1141 / +91 22 7115 8042 Local access number • +91 70456 71221 International Toll Free
Slide 17: 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 18: Thank You!
Thank You!