Varun Beverages Limited has informed the Exchange about Investor Presentation
February 10, 2025
To,
National Stock Exchange of India Ltd. Exchange Plaza, Block G, C/1, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051 Email: cmlist@nse.co.in Symbol: VBL
BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai – 400 001 Email: corp.relations@bseindia.com Security Code: 540180
Sub: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015: Presentation on Audited Financial Results of the Company for the Quarter and Financial Year ended December 31, 2024
Dear Sir/Madam,
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, please find attached herewith a copy of the Presentation on Audited Financial Results of the Company for the Quarter and Financial Year ended December 31, 2024.
The same is also being uploaded on website of the Company at www.varunbeverages.com.
You are requested to take the above on record.
Yours faithfully, For Varun Beverages Limited
Ravi Batra Chief Risk Officer & Group Company Secretary
Encl.: As above
February 10, 2025
(a PepsiCo franchisee)
Varun Beverages Limited
Q4 & CY2024 Results Presentation
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 involve a number of risks, uncertainties and assumptions which could cause actual
results or events to differ materially from those expressed or implied by the forward-looking statements. These
include, among other factors, changes in economic, political, regulatory, business or other market conditions.
Neither the Company nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary
undertakings or any such person’s officers or employees guarantees that the assumptions underlying such forward-
looking statements are free from errors nor does either accept any responsibility for the future accuracy of the
forward-looking statements contained
in this presentation or the actual occurrence of the forecasted
developments. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking
statements, on the basis of any subsequent developments, information or events, or otherwise. Given these
uncertainties and other factors, viewers of this communication are cautioned not to place undue reliance on these
forward-looking statements.
2
Table of Contents
Company Overview
Chairman’s Message
Q4 & CY2024 Results Overview
Performance Highlights
Sustainability Initiatives
3
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*)
2019-2024: Sales Volume CAGR: ~17.9%
1,124
303
913
176
802
149
653
737
821
493
89
404
425
88
337
569
115
454
2019
2020
2021
2022
2023
2024
India
International
Note: *A unit case is equal to 5.678 liters of beverage divided in 24 bottles of ~ 237 ml each
On 27th March, 2024, we consolidated the franchised territories of South Africa, Lesotho & Eswatini and the territories with distribution rights in Namibia, Botswana, Mozambique and Madagascar.
4
Note: Map not to scale
4
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 Based Drinks
Ice Tea
Packaged Water
Packaged Water
Snacks#
Dairy Based Beverages*
# Manufacturing of Cheetos (underway) & Distribution of Frito Lay, Doritos and Cheetos in Morocco; Manufacturing (underway) & Distribution of Simba Munchiez in Zambia and Zimbabwe; Co-manufacturing of Kurkure Puffcorn in India. ^ Manufacturing & Distribution of own brands is restricted in select territories. * “CreamBell” trademark has been licensed to be used by VBL for ambient temperature value added dairy based beverages.
5
Symbiotic Relationship with PepsiCo
Demand Delivery
Demand Creation
• Production Facilities
• Sales & Distribution –
GTM & Logistics
• In-outlet Management –
Visi-Coolers
• Consumer Push
Management (BTL) - Market Share Gains
33+
Years of Association (agreement in India valid till April, 2039)
90%+
of PepsiCo India Sales Volume
• Trademarks
• Formulation through
Concentrate
• Product & Packaging innovation through investment in R&D
• Consumer Pull
Management (ATL) - Brand Development
6
Key Player in the Beverage Industry – Business Model
I
N A H C E U L A V S S O R C A N O I T U C E X E D N E - O T - D N E
- L B V
MANUFACTURING
Concentrate (PepsiCo)
Other Raw Materials
Bottling
DISTRIBUTION & WAREHOUSING
CUSTOMER MANAGEMENT
▪ 48 state-of-the-art production facilities
▪ 36 in India & 12 in International territories
SOLID INRASTRUCTURE
▪ 130+ depots ▪ 2,800+ primary distributors with strong distribution infra of 10,000+ vehicles with 2,000+ EVs ▪ 2,600+ owned vehicles
▪ Installed 1.15 million+ visi-coolers, reaching 4 million+ outlets ▪ VBL - local level promotion and in-store activation ▪ PepsiCo - brand development & consumer marketing
ROBUST SUPPLY CHAIN
DEMAND DELIVERY
IN-MARKET EXECUTION
▪ Experienced sales team of over 3,500+ employees ▪ Responsible for category value/volume growth ▪ Path created for reaching out to every 5th person in the world
MARKET SHARE GAINS
COST EFFICIENCIES
▪ Production optimization ▪ Backward integration (3 exclusive + 14 integrated plants) ▪ Innovation (packaging etc.)
MARGIN EXPANSION
CASH MANAGEMENT
▪ Working capital efficiencies ▪ Disciplined capex investment ▪ Territory acquisition
ROE EXPANSION / FUTURE GROWTH 7
7
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 rights in Namibia, Botswana, Mozambique and Madagascar. We also started greenfield operations into a new country of Democratic Republic of Congo (DRC). The growth has been driven by organic volume growth and improved product mix.
India volumes grew 11.4%, reflecting the strength of our distribution network and operational execution. Consolidated volumes increased by 23.2%, largely led by new territories resulting in consolidated revenues increase by 24.7%, EBITDA growth of 30.5%, and PAT growth of 25.3% for the year.
We are progressing well in South Africa as we grew the sales volumes by 12.5% in the very first year of operations. We are consciously reducing our reliance on modern trade channel and enhancing our distribution network in general trade. As an enabler, we have placed more visi-coolers in the SA market in a single year than what was cumulatively placed till date by previous operators. We are working on plans for backward integration in the territory.
We also entered into share purchase agreement to acquire PepsiCo’s business in Tanzania and Ghana, pending regulatory and other approvals. Integration of these acquisitions, along with our operations in South Africa, shall strengthen our presence in key international markets. This, coupled with the commissioning of new greenfield facilities in India and DRC, shall enhance our manufacturing and distribution capabilities, ensuring we are well-positioned to cater to growing consumer demand. Additionally, our foray into the snacks business with PepsiCo in Morocco, Zimbabwe and Zambia marks an important step in enriching our portfolio and leveraging synergies with our existing infrastructure.
In a significant development during the quarter, we successfully raised Rs. 75,000 million through a Qualified Institutional Placement (QIP). We appreciate the confidence and trust placed by leading domestic and foreign institutional investors, in our long-term strategy, business fundamentals, and execution capabilities. This capital raise strengthens our financial position, providing the flexibility to pursue strategic expansion opportunities, enhance our operational capabilities, and reinforce our balance sheet. Further, in line with our commitment to delivering value to shareholders, we are pleased to share that the Board has recommended a final dividend of Rs. 0.50 per equity share subject to shareholders’ approval.
Looking ahead, we remain focused on sustaining healthy growth in both Indian and international markets through deeper market penetration, strategic capacity expansion, and continued investments in technology and sustainability. Our focused efforts in strengthening last-mile distribution and deploying Visi Coolers in under-penetrated regions will enable us to reach a broader consumer base. With a strong foundation in place, we are confident in our ability to drive long-term value creation for all stakeholders in the years to come.”
8
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 of our Company.
▪ This acquisition allowed us to consolidate our presence in franchised territories in South Africa, Lesotho, and Eswatini, as well as
territories with distribution rights in Namibia, Botswana, Mozambique, and Madagascar.
2. Acquisition of Tanzania and Ghana territories
▪ On 13 November 2024, VBL entered into a share purchase agreement with Tanzania Bottling Company SA and SBC Beverages Ghana Limited for purchase of 100% share capital, subject to regulatory and other approvals, including but not limited to PepsiCo Inc. at an Equity value of ~ USD 154.50 mn for Tanzania and ~ USD 15.06 mn for Ghana.
▪ The acquisition is expected to be completed on or before 28 February 2025 for Ghana and 31 March 2025 for Tanzania.
3. Exclusive Snacks Franchising Appointment with PepsiCo for Morocco, Zimbabwe and Zambia:
▪ The Varun Beverages Morocco SA (a wholly owned subsidiary of the Company) entered into an Exclusive Snacks Appointment Agreement to manufacture and package Cheetos in the territory of Morocco. This appointment is in addition to the existing distribution agreement for PepsiCo’s snacks portfolio consisting of Lays, Cheetos, Doritos in the territory of Morocco.
▪ Varun Zimbabwe and Varun Zambia (subsidiaries of the Company) entered into an Exclusive Snacks Franchising Appointment with Premier Nutrition Trading LLC, Dubai (subsidiary of PepsiCo Inc.) to manufacture, distribute, and sell “Simba Munchiez” in the territory of Zimbabwe & Zambia.
▪ Distribution in Zimbabwe and Zambia has started w.e.f. 1 Feb 2025. Manufacturing facilities are expected to be operational for
Morocco on or before 1 May 2025, Zimbabwe on or before 1 Oct 2025 and for Zambia on or before 1 April 2026.
9
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 greenfield production facility in Kinshasa, Democratic Republic of Congo.
▪ Further, we have set-up / expanded backward integration facilities at the Guwahati plant in India, as well as at plants in
Morocco, Zambia, and Zimbabwe in international regions.
5. Qualified Institutions Placement (QIP) Issue:
▪ The Company raised ~ Rs. 75,000 million through fresh issue of 132,743,362 equity shares.
▪ The utilization of QIP proceeds (net of issue expenses) is primarily towards repayment of debt as well as acquisitions.
6. Sub-division/split of existing equity shares of the Company :
▪ The Company on 12 September 2024 (“Record Date”), sub-divided/split of existing Equity Shares of the Company from 1 (one) equity share having face value of Rs. 5 each, fully paid-up, into such number of equity shares having face value of Rs. 2 each fully paid-up.
7. Dividend:
▪
The Board of Directors in their meeting held on 10 February 2025 have approved a payment of final dividend of Rs. 0.50 (Fifty paise only) per equity share of the face value of Rs. 2 each, subject to the approval of equity shareholders in ensuing annual general meeting of the Company.
10
Results Overview
Revenue
24.7%
200,077
160,426
n m
. s R
38.3%
26,677
36,888
EBITDA
30.5%
n m
. s R
38.7%
4,183 15.7%
5,800
15.7%
47,111
23.5%
n m
. s R
36,095
22.5%
36.1%
1,438
1,956
(a PepsiCo franchisee)
PAT
25.3%
26,343
21,018
Q4 2023 Q4 2024
CY 2023
CY 2024
Q4 2023 Q4 2024
CY 2023
CY 2024
Q4 2023 Q4 2024
CY 2023
CY 2024
Quarterly Sales Volumes (Category-wise mn unit cases)
224 mn
7.2%
240 mn
28.1%
402 mn
314 mn
21.9%
267 mn
220 mn
38.1%
215 mn
156 mn
400 300 200 100 -
Q1 2023
Q1 2024
Q2 2023
Q2 2024
Q3 2023
Q3 2024
Q4 2023
Q4 2024
Period
Q1 2023
Q1 2024
Q2 2023
Q2 2024
Q3 2023
Q3 2024
Q4 2023
Q4 2024
CSD
NCB
Water
160
71%
169
71%
232
74%
307
76%
159
72%
200
75%
106
68%
158
73%
16
48
7%
22%
18
53
7%
22%
23
59
7%
19%
32
63
8%
16%
11
50
5%
23%
11
56
4%
21%
8
42
5%
27%
8
49
4%
23%
11
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
(b) Excise Duty
Net Revenues
(c) Other income
2. Expenses
(a) Cost of materials consumed
(b) Purchase of stock-in-trade
38,176.15
27,309.82 39.8%
204,813.28
163,210.63 25.5%
1,288.23
632.93 103.5%
4,736.78
2,784.82 70.1%
36,887.92
26,676.89
38.3%
200,076.50 160,425.81 24.7%
446.39
91.16 389.7%
1212.68
793.59 52.8%
17,054.87
12,086.89 41.1%
82,937.43
70,264.61 18.0%
1,443.70
1,021.90 41.3%
6,859.21
(749.40)
4,626.96 48.2%
(842.69)
11.1%
(c) Changes in inventories of FG, WIP and stock-in-trade
(2,296.55)
(1,539.84)
-49.1%
(d) Employee benefits expense
(e) Finance costs
(f) Depreciation and amortisation expense
(g) Other expenses
Total expenses
EBITDA
4,790.23
3,713.09 29.0%
18,850.26
14,465.87 30.3%
1,090.05
736.59 48.0%
2,607.82
1,659.72 57.1%
4,503.86
9,473.86
2,680.99 68.0%
6,809.06 39.1%
10,095.96
7,211.98 40.0%
45,068.29
35,816.21 25.8%
34,786.08
24,890.33
39.8%
166,943.51 133,821.01 24.8%
5,799.71
4,182.87
38.7%
47,110.71
36,094.85 30.5%
3. Profit before share of (loss)/profit of associates and joint venture (1-2)
2,548.23
1,877.72 35.7%
34,345.67
27,398.39 25.4%
4. Share of loss of associates and joint venture
(6.86)
2.08
NA
(14.78)
(4.79) -208.6%
5. Profit before tax (3+4)
6. Tax expense
7. Net profit after tax (5-6)
2,541.37
1,879.80 35.2%
34,330.89
27,393.60 25.3%
584.93
442.18 32.3%
7988.04
6,375.47 25.3%
1,956.44
1,437.62
36.1%
26,342.85
21,018.13 25.3%
12
31-Dec-24 31-Dec-23
Particulars (Rs million)
31-Dec-24 31-Dec-23
(a PepsiCo franchisee)
Consolidated Balance Sheet
Particulars (Rs million)
Equity and liabilities Equity (a) Equity share capital (b) Other equity (c) Non-controlling interest
6,763.02 159,335.27 1,298.07 Total equity 167,396.36
6,496.07 62,868.91 1,481.55 70,846.53
Liabilities Non-current liabilities (a) Financial liabilities
(i) Borrowings (ia) Lease liabilities
(b) Provisions (c) Deferred tax liabilities (Net) (d) Other non-current liabilities
8,406.89 3,570.86 1,894.34 4,879.09 47.31 Total non- current liabilities 18,798.49
31,889.38 1,978.85 2,126.44 3,430.11 68.4 39,493.18
Current liabilities (a) Financial liabilities
(i) Borrowings (ia) Lease liabilities (ii) Trade Payables (iii) Other financial liabilities
(b) Other current liabilities (c ) Provisions (d) Current tax liabilities (Net)
20,054.49 15,235.76 390.38 1,049.03 7,582.48 15,604.27 7,638.39 7,043.41 4,650.93 4,916.55 825.43 739.00 390.02 656.23 41,532.12 Total current liabilities 45,244.25 81,025.30 Total liabilities 64,042.74 Total Equity and liabilities 231,439.10 151,871.83
Assets Non-current assets (a) Property, plant and equipment (b) Capital work in progress (c) Right of Use of Assets (d) Goodwill / franchise rights (e) Other intangible assets (f) Intangible assets under development (g) Investment in associates and joint venture (h) Financial assets (i) Deferred tax assets (Net) (j) Other non-current assets
106,225.51 11,623.43 13,631.22 3,009.37 11,151.26 43.69 534.47 1,266.68 196.31 5,117.42
68,031.32 19,222.22 10,347.07 242.30 5,471.00 0.00 179.32 654.18
-
27,912.34
21,505.33
5,368.12 Total non-current assets 152,799.36 109,515.53
Current assets (a)Inventories (b) Financial assets
(i)Trade receivables (ii)Cash and cash equivalents (iii)Other bank balances (iv) Others
(c) Current tax assets (Net) (d) Other current assets
3,593.85 2,422.12 2,176.50 7,388.23 3.11 5,267.16 42,356.30 Total assets 231,439.10 151,871.83
8,458.42 22,662.83 1,837.71 8,356.16 48.72 9,363.56 78,639.74
13
Total current assets
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 territories at 6.3%. Restricted international organic growth was due to transition to zero sugar portfolio post sugar tax in Zimbabwe.
• Net Revenue from operations grew by 24.7% in CY2024 to Rs. 200,076.5 million from Rs. 160,425.8 million in CY2023 inline with the volume
growth. Net realization per case increased by 1.3% to Rs. 177.9 in CY2024.
•
In Q4 CY2024, the consolidated sales volume grew by 38.1% to 215.1 million cases from 155.7 million cases in Q4 CY2023. This includes 43.0 million cases from South Africa and 7.8 million cases from DRC during the current quarter.
• CSD constituted 74.2%, NCB 6.2% and Packaged Drinking Water 19.6% in CY2024 at a consolidated level. Mix of NCB (Non-Carbonated
Beverages) portfolio increased in India to 8.0% in CY2024 from 7.4% in CY2023
Gross Margins
• Gross margins increased by 165 bps to 55.5% in CY2024, compared to 53.8% in CY2023, mainly due to strategic procurement and storage
of PET chips to avail price benefits, along with efforts to reduce sugar content and benefit of increasing backward integration.
•
In CY2024, mix of Low sugar / No sugar products increased to ~ 53% of our consolidated sales volumes from ~42% in CY2023.
EBITDA
• EBITDA increased by 30.5% to Rs. 47,110.7 million and EBITDA margin improved by 105 bps to 23.5% in CY2024, driven by improvement in
gross margins.
•
This net improvement in EBITDA margins is in-spite of consolidation of SA market with low margin due to ~80% mix of own brands and the fixed costs associated with new capex, which are yet to the utilized to full potential.
14
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 million and gain on foreign currency of Rs. 714.8 million. All these line items get eliminated while consolidation and merely shifts profitability from International markets to VBL India on standalone basis.
• Depreciation increased by 39.1% and Finance cost increased by 68.0% in CY2024 (substantially till the QIP proceeds credit date i.e. 21 November 2024). The increase was due to the acquisition of BevCo and the establishment of four new production facilities in India and DRC.
• PAT increased by 25.3% to Rs. 26,342.8 million in CY2024 from Rs. 21,018.1 million in CY2023 driven by volume growth & improved margins.
Debt
•
•
In the current quarter, the company has become net debt free through prepayment of debts by using the proceeds from the QIP issue.
This action has helped in strengthening the Company’s balance sheet to create a war chest for future growth to enhance value for stakeholders.
Credit Rating
• CRISIL (an S&P Global Company) reaffirmed the companies long-term rating for bank loan facilities as CRISIL AA+/Stable.
15
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. 32,000 million. Location-wise split is Supa (Maharashtra) for ~ INR 10,000 million, Gorakhpur (UP) for ~ Rs. 11,000 million, Khordha (Odisha) for ~ Rs. 5,000 million & DRC for ~ Rs. 6,000 million.
• Rs. 8,000 million in International territories (Nepal – a CSD PET line, Morocco – a CSD PET and a Water line & Zimbabwe – a CSD PET
line), including backward integration at Morocco, Zambia and Zimbabwe.
• Balance capex comprises of land capitalized for future projects and capex on visi-coolers, glass bottles, pallets, vehicles, etc.
• Projected capex for CY2025 season is Rs. 31,000 million out of which as on 31 Dec 2024, the CWIP and Capital advances, already paid
for, stood at ~Rs. 16,500 million.
• Out of the projected capex for CY2025 season –
• ~ Rs, 20,000 million is towards setting up of greenfield facilities in India (Prayagraj, Damtal, Buxar & Meghalaya).
•
The balance capex is for snacks manufacturing in international territories, brownfield expansion in India (Sricity), rPET facilities in India and expansion in DRC.
Capacity
•
The annual production capacity in India increased during the season of CY2024 by ~45% over the capacity of season CY2022.
Working Capital
• Working capital days improved to ~ 31 days as on 31 December 2024 from ~ 34 days as on 31 December 2023. This improvement is
despite the in-organic expansion in the new markets (South Africa and DRC).
16
Performance Highlights (CY2019 – CY2024)
(a PepsiCo franchisee)
REVENUE CAGR (2019-24) – 22.9%
71
65
88
n b
. s R
200
160
132
2019
2020
2021
2022
2023
2024
EBITDA CAGR (2019-24) – 26.6%
EBITDA
EBITDA Margins (%)
55.00
45.00
35.00
25.00
15.00 n b 5.00 . s R (5.00)
20.3%
18.6%
18.8%
21.2%
22.5%
23.5%
14
12
17
28
36
47
2019
2020
2021
2022
2023
2024
30%
25%
20%
15%
10%
5%
0%
PAT CAGR (2019-24) – 41.0% 32.00 28.50 25.00 21.50 18.00 14.50 11.00 n b 7.50 . s 4.00 R 0.50 (3.00)
6.6%
5
2019
5.5%
4
2020
PAT
PAT Margins
11.8%
13.1%
13.2%
15.0%
NET WORTH CAGR (2019-24) – 37.9% 200.00
Net Worth
Net D/E
8.5%
16
7
26
21
2021
2022
2023
2024
150.00
100.00
n 50.00 b
. s R -
10.0%
5.0%
0.0%
167
0.0
5.0
4.0
3.0
2.0
1.0
0.0
34
1.0
36
0.8
42
0.7
52
0.7
71
0.7
2019
2020
2021
2022
2023
2024
17
SUSTAINABILITY – Being Water Positive (CDP water rating: A-)
Increase ground water level
2x WRR
Reduce water usage (WUR)
Water consumed Per liter of beverage produced
-35%
by 2025
190+ Water bodies (ponds & check dams) maintained
* Steady state WUR was 1.54 times in 2023 and 1.50 times in 2024, the differential is on account of stabilization of 2 new greenfield plants in 2023 and 3 new greenfield plants in 2024.
Using only half of recharged water for manufacturing
1.89
1.70
1.57*
1.56*
1.40
2021
2022
2023
2024
150+
Process Improvements
2025 Target
18
SUSTAINABILITY – Reducing Carbon Footprint (CDP climate rating: A)
Increase Renewable Energy
30% by 2030
Solar (Rooftop + Captive Power Solution) & Windmill RE Mix % & kWh million units
125
79 (16%)
58 (13%)
21 (6%)
18 (7%)
Reduce GHG Emissions
Emissions Kg CO2 e/Litre
0.32
0.23
Net Zero
by 2050
0.20
0.18
0.16
2021
2022
2023
2024
2025E
2021
2022
2023
2024E
2025E
2,000+ EV in trade for last mile
POSITIVE CLIMATE ACTIONS
375K+ Plantations (since 2020)
Efficient Visi Coolers – R290 (all new coolers starting 2023)
19
SUSTAINABILITY – Robust Packaging & Plastic Recycling
Increase Plastic Waste Recycle
Reduce Plastic Usage
Ahead of EPR Regulations
70%
80%
86%
88%
100%
2021
2022
2023
2024
2025E
rPET
~7,000 MT used in 2024
30% rPET mix in packaging by 2025
INDORAMA JV
Pepsi Zero Sugar and Sting energy come in rPET packaging
Packaging rationalization • Removal of pads (20k MT of paper
saving, equivalent to 400k trees)
•
Shrink film and label rationalization
(1.4 MT of material saving)
Closures by 20-25%
CSD/Juices/Water (2010 to-date)
Preforms by 10-20%
600ml to 2.25 liters (2010 to-date)
20
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: 800 101 2045
• UK: 0 808 101 1573
• USA: 1 866 746 2133
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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 selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. PepsiCo CSD brands produced and sold by VBL include Pepsi, Pepsi Black, Mountain Dew, Sting, Seven-Up, Mirinda, Seven-Up Nimbooz Masala Soda and Evervess. PepsiCo NCB brands produced and sold by the Company include Slice, Tropicana Juices (100% and Delight), Seven-Up Nimbooz, Gatorade as well as packaged drinking water under the brand Aquafina.
VBL has been associated with PepsiCo since the 1990s and have over three decades consolidated its business association with PepsiCo, increasing the number of licensed territories and sub-territories covered by the Company, producing and distributing a wider range of PepsiCo beverages, introducing various SKUs in the portfolio, and expanding the distribution network. As on date, VBL has been granted franchises for various PepsiCo products across 26 States and 6 Union Territories in India. India is the largest market and contributed ~72% of revenues from operations (net) in Fiscal 2024. VBL has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini & DRC and distribution rights for Namibia, Botswana, Mozambique and Madagascar.
For more information about us, please visit www.varunbeverages.com or contact:
Raj Gandhi / Deepak Dabas / Manjit Singh Chadha Varun Beverages Ltd Tel: +91 124 4643100 / +91 9871100000 / +91 9810779979 E-mail: raj.gandhi@rjcorp.in deepak.dabas@rjcorp.in manjit.chadha@rjcorp.in
Anoop Poojari / Mitesh Jain CDR India Tel: +91 9833090434 / +91 9619444691 E-mail: anoop@cdr-india.com mitesh@cdr-india.com
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Thank You!