Varun Beverages Ltd. · NSE:VBL
Varun Beverages — Q2 2018 Earnings Presentation
20 slides from Varun Beverages's earnings presentation, Aug 9, 2018
Slide 1: Exchange filing cover letter
if c o r p V R R U n B E V E R A G E S LffTlfCEe W 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 : [email protected] • Visit us a t : www.rjcorp.in CIN No. : L74899DL1995PLC069839 August 9, 2018 To, BSE
Slide 2: Q2 & H1 2018 Results Presentation
August 09, 2018 (a PepsiCo franchisee) Varun Beverages Limited Q2 & H1 2018 Results Presentation
Slide 3: 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 4: Table of Content
Table of Content (a PepsiCo franchisee) Company Overview Chairman’s Message Q2 & HI 2018 Results Overview Performance Highlights Annexure i 3
Slide 5: Company Snapshot
Company Snapshot (a PepsiCo franchisee) Key player in the beverage industry Operations spanning across 6 countries - 3 in C h a n d ig a rh ' Greater Noida I & II H a ry a n a - ------ U tta ra k h an d the Indian Subcontinent (India, Sri Lanka, ^ N epal Nepal) contribute ~90% to revenues; 3 in R a
Slide 6: Brands licensed by PepsiCo
Brands licensed by PepsiCo (a PepsiCo franchisee) Manufacturing & Distribution: Carbonated Soft Drinks Q ) pepsi. ^ 1 1hlnrk c fe t p e p si Fruit Pulp / Juice Based Drinks Energy Drink IropTcana _ IropTcana f r u j^ Carbonated Juice Based Drinks Distribution: "N Fruit Pulp / Juice Based Drinks Spor
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 ---- 1 Concentrate Other Raw (PepsiCo) Materials Bottling ■ 26 state-of-the-art production facilities SOLID INRASTRUCTURE 72 owned depots DISTRUBUTION & WAREHOUSING
Slide 8: Symbiotic Relationship with PepsiCo
Symbiotic Relationship with PepsiCo (a PepsiCo franchisee) VBL - Demand Delivery PepsiCo - Demand Creation Investment in Production Facilities - ■ Owner of Trademarks Manufacturing plants ■ Investment in R&D - Product & ■ Sales & Distribution - Vehicles Packaging innovation ■ In-outlet Management -
Slide 9: Chairman's Message
Chairman's Message (a PepsiCo franchisee) Commenting on the performance for Q2 & H1 2018, Mr. Ravi Jaipuria, Chairman - Varun Beverages Limited said, “We are pleased to announce that we have delivered a strong performance in the second quarter, the peak season for our products, delivering a robust t
Slide 10: Performance Highlights
Performance Highlights (a PepsiCo franchisee) Net Sales (adj.) ^ 25.5% 19.6% EBITDA* ^y 21.0% 7,476 ^ y 24.9% pat o 29.3% yy 26.i % c 6,177 3,068 3,265 Rs. million 31,539 5,749 o 4,805 25,126 1111 20,. 20,591 Q2 2017 ' 111 Q2 2018 Hi 2017 Hi 2018 0£ Q2 2017 Q2 2018 H1 2017 H1 2018 Q2 2017 Q2 2018 H1
Slide 11: 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 26.1% YoY in Q2 2018 to Rs. 20,591 million led by robust volume growth of 21.3% and value growth of ~ 4.8%. Introduction of higher realization pr
Slide 12: Discussion on Financial & Operational Performance
Discussion on Financial & Operational Performance (a PepsiCo franchisee) Debt / Credit Rating • Net debt stood at Rs. 20,947 million as on June 30, 2018 as against Rs. 22,225 million as on June 30, 2017 resulting in net reduction of Rs. 1,278 mn. D e b t: Equity ratio stood at 1.0x and D e b t: EBIT
Slide 13: Balance Sheet
Balance Sheet (a PepsiCo franchisee) Equity and liabilities Assets Equity Non-current assets (a) Equity share capital 1,826.15 1,825.87 1,825.10 (a) Property, plant and equipment 38,634.42 35,411.66 35,777.24 (b) Other equity 19,199.80 15,868.41 16,717.39 (b) Capital work in progress 482.35 1,454.38
Slide 14: Profit & Loss Statement
Profit & Loss Statement (a PepsiCo franchisee) Particulars (Rs. million) Q2 2018 Q2 2017 YoY(%) H1 2018 H1 2017 YoY (%) 1. Income (a) Revenue from operations (refer slide-14) 20,971.46 19,340.07 8.4% 32,195.19 29,848.94 7.9% (b) Other income _ 3.47 46.71 -92.6% _ 85.11 182.03 -53.2% Total income _ 2
Slide 15: GST Impact on Sales from Operations
GST Impact on Sales from Operations (a PepsiCo franchisee) Consequent to the introduction of Goods and Service Tax (GST) with effect from July 01, 2017, Central Excise, Value Added Tax (VAT), etc. have been subsumed into GST. In accordance with Indian Accounting Standard - 18 on Revenue and Schedule
Slide 16: Financial Highlights (2013 - H1 2018)
Financial Highlights (2013 - H1 2018) (a PepsiCo franchisee) Revenue PAT PAT Margins 10.4% CAGR (2013-17) - 17.3% CAGR (2012-1 7) - 53.5% ^ 5.3% 3,263 c Rs. million 38,520 40,034 o 3.9% 2,141 33'491 31,539 Z6% 1,513 25,097 21,175 1.5% 870 V) 251 -395 I m i l 2013 2014 2015 2016 2017 H1 2018 2012 201
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 distributo
Slide 18: Conference Call Details
Conference Call Details (a PepsiCo franchisee) s N 1 Varun Beverages Limited (VBL) Q2 & H1 CY2018 Earnings Conference Call \ T im e • 4:00 pm IS T on Thursday,August 09, 2018 Conference dial-in P rim a ry num b er • +91 22 6280 1141 / +91 22 7115 8042 Local access num b er • +91 70456 71221 In te rn
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!