Varun Beverages Limited has informed the Exchange about Investor Presentation

July 29, 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 Unaudited Financial Results of the Company for the Quarter and Half Year ended June 30, 2025

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 Unaudited Financial Results of the Company for the Quarter and Half Year ended June 30, 2025.

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

July 29, 2025

(a PepsiCo franchisee)

Varun Beverages Limited

Q2 & H1 CY2025 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

Q2 & H1 CY2025 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: ~18%

1,124

303

913

176

802

149

653

737

821

702

172

530

493

89

404

425

88

337

569

115

454

2019

2020

2021

2022

2023

2024 H1 2025

India

International

Note: *A unit case is equal to 5.678 liters of beverage divided in 24 bottles of ~ 237 ml each

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 & 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

▪ 50 state-of-the-art production facilities

▪ 38 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 + 16 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 Q2 & H1 CY2025, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said:

“We delivered a resilient performance during the quarter. In-spite of unusually early onset of monsoon rains in the peak summer months in India, we could keep our realizations per case and EBITDA margins intact. Due to growth in international markets supported by strong positive currency movement in Africa territories, Company ended the quarter with a positive PAT, in-spite of 3% decline in consolidated sales volumes

In International markets, Varun Beverages Morocco has commenced commercial production of PepsiCo’s snacks product ‘Cheetos’. This marks another milestone in strengthening our presence in the high-potential snack category, complementing our beverage portfolio and diversifying our revenue streams.

We continue to focus on growth opportunities in South Africa market. We have enhanced capacity by setting up a can line in Durban, one of our existing production facilities. We are awaiting approval from Competition Commission of South Africa for land parcel purchase adjoining to our production facility in Boksburg to further enhance capacity & backward integration. These are few starting steps in our series of initiatives.

Strong currency and our efforts in implementing backward integration last year have resulted in enhanced profitability in all our African territories. We have further strengthened Zambia, DRC and South Africa subsidiary balance sheets and through in-process equity infusion raising our stake in Zambia from 90% to 95%.

In line with our dividend policy, the Board of Directors has approved a second interim dividend of 25% of face value, i.e., Rs. 0.50 per share, resulting in a total cash outflow of approximately Rs. 1,691 million.

Although unseasonal rains have impacted performance during the quarter, we have successfully navigated such challenges in the past and emerged stronger. We continue to strengthen our on-ground execution by adding more visi-coolers and ensuring wider product availability across retail touchpoints. With robust capacities now operational, an expanding product portfolio, and a sharply focused distribution network, we are well-positioned to capture emerging opportunities and drive sustainable, long-term value creation for all stakeholders.”

8

Key Developments

(a PepsiCo franchisee)

1. Commencement of Commercial Production facilities :

▪ We have commissioned new production facilities at ;

• Prayagraj (UP) - 4 CSD Lines, 1 JBD Line , and 1 Water Line

• Damtal (HP) - 2 CSD Lines, and 1 JBD Line

• Buxar (Bihar) - 2 CSD Lines, 2 JBD Lines, and 1 Water Line

• Mendipathar (Meghalaya) - 2 CSD Lines, and 2 JBD Lines

2. Commencement of Commercial Production of PepsiCo Snacks at Morocco :

▪ During the current quarter ended 30 June 2025, Varun Beverages Morocco SA (subsidiary of the Company) has started

commercial production of PepsiCo's snacks product "Cheetos" in Morocco.

3. Acquisition of 50% stake in Everest Industrial Lanka (Private) Limited :

▪ The Company has Acquired 50% equity share capital of Everest Industrial Lanka (Private) Limited ("EIL"). EIL, a company in Sri Lanka is engaged in the business of production, manufacturing, distribution and selling of commercial visi-coolers and related accessories.

4. Dividend :

▪

In line with the guidelines of Company’s dividend policy, the Board of Director’s have approved an interim dividend @ 25% of face value i.e. Rs. 0.50 per share. Total cash outflow would be ~Rs. 1,691 million.

9

Results Overview

Revenue

EBITDA

(a PepsiCo franchisee)

PAT

13.6%

9.5%

5.0%

18,098

20,569

n m

. s R

-2.5%

71,969

70,174

9.3%

115,142

125,843

n m

. s R

0.4%

29,800

32,627

19,912

19,988

27.7%

28.5%

25.9%

25.9%

12,618

13,255

n m

. s R

Q2 2024 Q2 2025

H1 2024

H1 2025

Q2 2024 Q2 2025

H1 2024

H1 2025

Q2 2024 Q2 2025

H1 2024

H1 2025

Quarterly Sales Volumes (Category-wise mn unit cases)

21.9%

267 mn

220 mn

38.1%

215 mn

240 mn

156 mn

30.1%

312 mn

402 mn

-3.0%

390 mn

400 300 200 100 -

Q3 2023

Q3 2024

Q4 2023

Q4 2024

Q1 2024

Q1 2025

Q2 2024

Q2 2025

Period

Q3 2023

Q3 2024

Q4 2023

Q4 2024

Q1 2024

Q1 2025

Q2 2024

Q2 2025

CSD

NCB

Water

159

72%

200

75%

106

68%

158

73%

169

71%

234

75%

307

76%

291

75%

11

50

5%

23%

11

56

4%

21%

8

42

5%

27%

8

49

4%

23%

18

53

7%

22%

22

56

7%

18%

32

63

8%

16%

28

71

7%

18%

10

Consolidated Profit & Loss Statement

Particulars (Rs. million)

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 (c) Changes in inventories of FG, WIP and stock-in-trade (d) Employee benefits expense (e) Finance costs (f) Depreciation and amortisation expense

(g) Other expenses

Total expenses

EBITDA 3. Profit before share of (loss)/profit of associates and joint ventures (1-2)

4. Share of loss of associates and joint ventures 5. Profit before tax (3+4)

6. Tax expense

7. Net profit after tax (5-6)

Q2 2025

Q2 2024

YoY(%)

H1 2025

H1 2024

YoY (%)

(a PepsiCo franchisee)

71,630.21

73,336.72

-2.3% 128,430.47

117,316.52

1,456.50

1,368.10

6.5%

2,587.41

2,174.77

70,173.71 771.58

71,968.62 440.26

-2.5% 125,843.06 115,141.75 523.79 1052.16 75.3%

28,454.04 991.23 2,465.75 5,496.58 365.47 3,061.51

28,723.27 1,600.16 2,282.36 4,992.91 1,291.59 2,424.77

12,778.38

14,457.75

-0.9% -38.1% 8.0% 10.1% -71.7% 26.3%

-11.6%

55,164.75 1,703.07 333.83 10,611.60 776.71 5,786.64

48,032.49 3,952.31 (503.52) 8,929.63 2,228.46 4,299.93

25,402.44

24,931.06

53,612.96

55,772.81

-3.9% 99,779.04

91,870.36

19,987.73 17,332.33

(11.89) 17,320.44

19,912.17 16,636.07

(5.36) 16,630.71

0.4% 32,627.37 27,116.18 4.2%

-121.8%

(17.66) 4.1% 27,098.52

29,799.78 23,795.18

(6.97) 23,788.21

4,065.56

4,012.37

1.3%

6,530.06

5,690.05

13,254.88

12,618.34

5.0% 20,568.46

18,098.16

9.5%

19.0%

9.3% 100.9%

14.8% -56.9% -166.3% 18.8% -65.1% 34.6%

1.9%

8.6%

9.5% 14.0%

-153.4% 13.9%

14.8%

13.6%

11

Consolidated Balance Sheet

6,763.83 176,869.41 1,433.28 185,066.52

6,497.20 79,280.46 1,681.50 87,459.16

Total equity

Particulars (Rs million)

Equity and liabilities Equity (a) Equity share capital (b) Other equity (c) Non-controlling interest

Liabilities Non-current liabilities (a) Financial liabilities

(i) Borrowings (ia) Lease liabilities

(b) Provisions (c) Deferred tax liabilities (Net) (d) Other non-current liabilities

Total non- current liabilities

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)

Total current liabilities Total liabilities Total Equity and liabilities

30-Jun-25

30-Jun-24

Particulars (Rs million)

30-Jun-25

30-Jun-24

(a PepsiCo franchisee)

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 ventures (h) Financial assets (i) Deferred tax assets (Net) (j) Other non-current assets

Total non-current assets

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

Total current assets Total assets

5,907.39

127,692.83 96,294.01 9,420.85 14,115.26 12,837.87 6,931.24 6,638.98 -

3,178.10 11,329.89 75.18

1,267.53 1,414.20 206.77 1,835.49

392.27 1,147.19

-

3,436.06 167,022.64 137,098.47

30,733.39 27,960.18

11,988.24 10,254.84 2,121.61 19,738.03 1,955.87 1,751.66 9,195.86 10,593.70 55.50 68.82 5,159.24 5,260.02 80,133.86 56,703.10 247,156.50 193,801.57

12

5,788.22 4,150.89 2,072.31 5,488.82 9.91 17,510.15

35,412.33 3,885.47 2,245.97 3,849.83 65.92 45,459.52

10,552.31 891.10 13,698.16 7,727.97 7,405.03 780.19 3,525.07 44,579.83 62,089.98 247,156.50

27,473.16 838.20 14,086.54 6,729.20 7,622.93 952.28 3,180.58 60,882.89 106,342.41 193,801.57

Discussion on Financial & Operational Performance

(a PepsiCo franchisee)

Sales Volumes / Net Revenues

• Consolidated sales volume declined by 3.0% to 389.7 million cases in Q2 CY2025 from 401.6 million cases in Q2 CY2024, primarily due

to abnormally high unseasonal rainfall through out the quarter in India.

•

•

India volumes declined by 7.1% while International volumes grew by 15.1% (South Africa growing at 16.1%), partially offsetting the overall decline.

The net realization per case at the consolidated level increased by 0.5% driven by 6.6% improvement in the International markets.

• Net Revenue from operations decreased by 2.5% in Q2 CY2025 to Rs. 70,173.7 million from Rs. 71,968.6 million in Q2 CY2024.

• CSD constituted 75%, NCB 7% and Packaged Drinking Water 18% in Q2 CY2025.

Gross Margins / EBITDA

• EBITDA margins increased by 82 bps in Q2 CY2025 to 28.5% from 27.7% in Q2 CY2024 in-spite of increase in fixed overheads due to new

capacity being commissioned at four greenfield plants in India which all are yet to yield incremental volumes.

• EBITDA margins increased on account of operational efficiencies and strong currency in international territories.

• Gross margins remained steady at 54.5% in Q2 CY2025 and EBITDA remained steady at Rs. 19,987.7 million.

•

In H1 CY2025, mix of Low sugar / No added sugar products was ~ 55% of our consolidated sales volumes.

PAT

• PAT increased by 5.0% to Rs. 13,254.9 million in Q2 CY2025 from Rs. 12,618.3 million in Q2 CY2024 driven by operational efficiencies and

lower finance cost.

• Depreciation increased by 26.3% on account of commissioning of new plants in India & DRC, as well as brownfield expansion in other

international markets.

• Post repayment of debt from QIP proceeds, finance cost in India is negligible, in the International markets finance cost is primarily in

South Africa which also includes the fair value adjustment of leases as per Ind AS 116.

13

Discussion on Financial & Operational Performance

(a PepsiCo franchisee)

Debt

• Company remained net debt free in the current quarter with free cash of Rs. 5,149 mn, which has helped in strengthening the

Company’s balance sheet and remain prepared for growth opportunities.

• Company’s long-term rating for bank loan facilities from CRISIL (an S&P Global Company) is reaffirmed as CRISIL AAA/Stable.

Capex (capitalization)

• During H1 CY2025, the net capitalized capex amounted to ~Rs. 25,000 mn which includes –

• ~Rs. 14,500 mn for setting up of four greenfield production facilities at Prayagraj (UP), Buxar (Bihar), Damtal (Himachal) &

Mendipathar (Meghalaya).

• ~Rs. 1,200 mn for brownfield expansion in Sricity (India).

• ~Rs. 4,500 million in International territories (DRC – a CSD PET line and backward integration, Morocco – Snacks manufacturing

plant & South Africa – a CAN line).

• Balance capex comprises of visi-coolers, glass bottles, pallets, vehicles, etc..

• As on June 30, 2025, the CWIP of ~Rs. 6,000 mn are primarily towards balance capex in the phase II of above new greenfield plants in

India and snacks manufacturing plant in Zimbabwe.

Working Capital

• Working capital days remained steady at ~ 35 days as on 30 June 2025 as compared to ~ 33 days as on 30 June 2024.

14

Performance Highlights (CY2019 – CY2024 & H1 CY2025)

(a PepsiCo franchisee)

REVENUE CAGR (2019-24) – 22.9%

71

65

88

n b

. s R

200

160

132

126

2019

2020

2021

2022

2023

2024 H1 2025

EBITDA CAGR (2019-24) – 26.6%

20.3%

18.6% 18.8%

EBITDA

EBITDA Margins (%)

21.2% 22.5% 23.5%

25.9%

14

12

17

36

28

47

33

2019

2020

2021

2022

2023

2024 H1 2025

55.00

45.00

35.00

25.00

15.00 n b 5.00 . s R (5.00)

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%

4

5

5.5%

2019

2020

PAT

PAT Margins

16.3%

13.1%

13.2%

26

21

21

11.8%

16

8.5%

7

2021

2022

2023

2024 H1 2025

20.0%

15.0%

10.0%

5.0%

0.0%

NET WORTH CAGR (2019-24) – 37.9% 200.00

Net Worth

Net D/E

185

167

150.00

100.00

n 50.00 b

. s R -

36

0.8

42

0.7

52

0.7

34

1.0

71

0.7

0.0

0.0

5.0

4.0

3.0

2.0

1.0

0.0

2019

2020

2021

2022

2023

2024 H1 2025

15

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

-26%

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

16

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

GHG Emissions

Net Zero

by 2050

GHG Emissions in million tons of CO2e per liter

125

79 (16%)

58 (13%)

21 (6%)

18 (7%)

CY2022

CY2023

CY2024

Scope 3

Scope 2

Scope 1

668.2

83.2

21.7

626.5

73.7

17.9

671.0

75.9

19.0

2021

2022

2023

2024

2025E

Note: The increase in GHG emissions is attributed to inorganic acquisitions in CY 2024.

2,000+ EV in trade for last mile

POSITIVE CLIMATE ACTIONS

375K+ Plantations (since 2020)

Efficient Visi Coolers – R290 (all new coolers starting 2023)

17

SUSTAINABILITY – Circular Economy

(CDP Supplier Engagement Assessment rating A)

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)

18

Conference Call Details

(a PepsiCo franchisee)

Varun Beverages Limited Q2 & H1 CY2025 Earnings Conference Call

Time

• Tuesday, July 29, 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

19

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 Zero, 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

20

Thank You!