Varun Beverages Limited has informed the Exchange about Investor Presentation
October 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 Nine Months ended September 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 Nine Months ended September 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
October 29, 2025
(a PepsiCo franchisee)
Varun Beverages Limited
Q3 & 9M 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
Q3 & 9M 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
976
268
913
176
802
149
653
737
821
708
493
89
404
425
88
337
569
115
454
2019
2020
2021
2022
2023
2024
9M 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
▪ 50 state-of-the-art production facilities
▪ 38 in India & 12 in International territories
SOLID INRASTRUCTURE
DISTRIBUTION & WAREHOUSING
CUSTOMER MANAGEMENT
▪ Robust distribution network with strong distribution infra of vehicles, including EVs ▪ Wide network of owned vehicles
ROBUST SUPPLY CHAIN
▪ Wide presence in retail outlets through visi-coolers ▪ VBL - local level promotion and in-store activation ▪ PepsiCo - brand development & consumer marketing
DEMAND DELIVERY
IN-MARKET EXECUTION
▪ Experienced sales team ▪ 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 Q3 & 9M CY2025, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said:
“We have delivered a steady performance during the quarter, with consolidated sales volumes rising by 2.4%, supported by healthy traction in international markets. While domestic volumes remained subdued due to prolonged rainfall across India, international operations grew by 9%.
Performance in International territories continued to be healthy, with South Africa delivering another quarter of strong growth. In South Africa, we see significant potential to further strengthen our market position, and we continue to put in place the building blocks to support sustained growth in the region. Our ongoing backward integration initiatives across key locations are driving higher efficiency and operational resilience.
Further, in line with our growth strategy, we are incorporating a wholly-owned subsidiary in Kenya under Varun Beverages Limited to carry on the business of manufacturing, distribution and selling of beverages. We are also diversifying our product offerings and certain African subsidiaries of VBL shall test market beer in their territories through an exclusive Distribution Agreement with Carlsberg Breweries A/S for their Carlsberg brand. These developments collectively reflect our continued commitment to broadening our product base and strengthening our presence across key growth markets.
Meanwhile, our snacks facility in Morocco has ramped up to full-scale operations, and the upcoming Zimbabwe plant is progressing towards commissioning, marking continued progress in diversifying our portfolio beyond beverages.
While the extended monsoon season impacted consumption trends in India, we remain confident in the significant long-term potential of the domestic beverage industry. With low per capita consumption and rising penetration in semi-urban and rural markets, the opportunity for growth continues to be immense. Our ongoing investments in capacity expansion, distribution reach, and cold-chain infrastructure are further strengthening on-ground execution, ensuring we are well-prepared to capture demand recovery in the upcoming season and deliver sustainable growth for all stakeholders.”
8
Key Developments
(a PepsiCo franchisee)
1. Incorporation of wholly-owned subsidiary in Kenya:
▪ We are incorporating a wholly-owned subsidiary in Kenya under Varun Beverages Limited to carry on the business of
manufacturing, distribution and selling of beverages.
2. Exclusive Distribution Agreement with Carlsberg Breweries A/S for African markets:
▪ Certain African subsidiaries of VBL, to test market beer in their territories, have entered into an exclusive Distribution
Agreement with Carlsberg Breweries A/S for their brand - Carlsberg.
3. Addition of alcoholic beverage business in the Main Objects of the Memorandum of Association:
▪ In response to the growing popularity of Ready To Drink (RTD) and variety of Alcoholic Beverages, VBL sees an opportunity for expansion into the business of RTD & Alcoholic Beverages of any type or description, including beer, wine, liquor, brandy, whisky, gin, rum, vodka in India & abroad.
4. Incorporation of a joint venture company - White Peak Refrigeration Private Limited in India:
▪ VBL has formed a joint venture, “White Peak Refrigeration Private Limited” in partnership with Everest International Holdings Limited, to carry on the business of manufacturing of visi-coolers and other refrigeration equipment in India.
9
Results Overview
Revenue
7.1%
1,63,189
1,74,810
EBITDA
6.8%
41,311
44,101
n m
. s R
1.9%
48,047
48,967
n m
. s R
-0.3%
11,511
11,474
24.0%
23.4%
n m
. s R
18.5%
6,288
7,452
25.3%
25.2%
(a PepsiCo franchisee)
PAT
14.9%
28,020
24,386
Q3 2024 Q3 2025
9M 2024
9M 2025
Q3 2024 Q3 2025
9M 2024
9M 2025
Q3 2024 Q3 2025
9M 2024
9M 2025
Quarterly Sales Volumes (Category-wise mn unit cases)
38.1%
215 mn
240 mn
156 mn
400 300 200 100 0
30.1%
312 mn
402 mn
-3.0%
390 mn
2.4%
267 mn
274 mn
Q4 2023
Q4 2024
Q1 2024
Q1 2025
Q2 2024
Q2 2025
Q3 2024
Q3 2025
Period
Q4 2023
Q4 2024
Q1 2024
Q1 2025
Q2 2024
Q2 2025
Q3 2024
Q3 2025
CSD
NCB
Water
106
68%
158
73%
169
71%
234
75%
307
76%
291
75%
200
75%
202
74%
8
42
5%
27%
8
49
4%
23%
18
53
7%
22%
22
56
7%
18%
32
63
8%
16%
28
71
7%
18%
11
56
4%
21%
12
60
4%
22%
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
(a PepsiCo franchisee)
Q3 2025
Q3 2024
YoY(%)
9M 2025
9M 2024
YoY (%)
50,477.42
49,320.61
2.3% 178,907.89
166,637.13
7.4%
1,510.92
1,273.78
18.6%
4,098.33
3,448.55
18.8%
48,966.50 1480.25
48,046.83 242.50
1.9% 174,809.56 163,188.58 766.29
2532.41
510.4%
18,985.16 889.08 1,317.84 5,533.20 452.14 3,076.00
17,850.07 1,463.20 2,050.67 5,130.40 1,185.35 2,566.11
6.4% -39.2% -35.7% 7.9% -61.9% 19.9%
74,149.91 2,592.15 1,651.67 16,144.80 1,228.85 8,862.64
65,882.56 5,415.51 1,547.15 14,060.03 3,413.81 6,866.04
10,767.46
10,041.27
7.2%
36,169.90
34,972.33
41,020.88
40,287.07
1.8% 140,799.92 132,157.43
EBITDA 3. Profit before share of (loss)/profit of associates and joint ventures (1-2)
11,473.76 9,425.87
11,511.22 8,002.26
-0.3% 44,101.13 36,542.05 17.8%
4. Share of loss of associates and joint ventures 5. Profit before tax (3+4)
(16.76) 9,409.11
(0.95) 8,001.31
-1664.2%
(34.42) 17.6% 36,507.63
41,311.00 31,797.44
(7.92) 31,789.52
6. Tax expense
7. Net profit after tax (5-6)
1,957.19
1,713.06
14.3%
8,487.25
7,403.11
7,451.92
6,288.25
18.5% 28,020.38
24,386.41
7.1% 230.5%
12.5% -52.1% 6.8% 14.8% -64.0% 29.1%
3.4%
6.5%
6.8% 14.9%
-334.6% 14.8%
14.6%
14.9%
11
Discussion on Financial & Operational Performance
(a PepsiCo franchisee)
Sales Volumes / Net Revenues
• Consolidated sales volume grew by 2.4% to 273.8 million cases in Q3 CY2025 from 267.5 million cases in Q3 CY2024, despite of heavy
rainfall continuing across India through out the quarter.
•
India volumes were almost flat and International volumes grew by 9.0%, led by a strong performance in South Africa.
• Net Revenue from operations increased by 1.9% in Q3 CY2025 to Rs. 48,966.5 million from Rs. 48,046.8 million in Q3 CY2024.
• Net realization per case stood at Rs. 178.8 per case in Q3 CY2025 as compared to Rs. 179.6 per case in Q3 CY2024 due to higher mix
of water in International markets. CSD constituted 74%, NCB 4% and Packaged Drinking Water 22% in Q3 CY2025.
Gross Margins / EBITDA
• Gross margins improved by 119 bps at 56.7% in Q3 CY2025 due to increased mix of water in International markets. Also, in the international markets, there is a shifting of expenses from purchase of raw materials to employee cost, power & fuel and other manufacturing overheads because of increased in-house backward integration initiatives.
• EBITDA remained flat while EBITDA margins declined slightly by 53 bps to 23.4% in Q3 CY2025 compared to 24.0% in Q3 CY2024.
Increase in other expenses is primarily due to the reason explained in above point.
•
In 9M CY2025, mix of Low sugar / No added sugar products was ~ 56% of our consolidated sales volumes and ~45% in India.
PAT
• PAT increased by 18.5% to Rs. 7,451.9 million in Q3 CY2025 from Rs. 6,288.3 million in Q3 CY2024 driven by lower finance cost and higher
other income which includes interest on deposits in India and favorable currency movement in the international territories.
• Depreciation increased by 19.9% 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.
12
Performance Highlights (CY2019 – CY2024 & 9M CY2025)
(a PepsiCo franchisee)
REVENUE CAGR (2019-24) – 22.9%
71
65
88
n b
. s R
200
175
160
132
2019
2020
2021
2022
2023
2024
9M 2025
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%
25.2%
14
12
17
36
28
47
44
2019
2020
2021
2022
2023
2024 9M 2025
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
4
5.5%
2019
2020
PAT
PAT Margins
13.1%
13.2%
11.8%
16.0%
20.0%
15.0%
26
28
10.0%
8.5%
7
21
16
200.00
150.00
100.00 n b 50.00 . s R -
5.0%
0.0%
NET WORTH CAGR (2019-24) – 37.9% 250.00
Net Worth
Net D/E
192
167
36 0.8
42 0.7
52
0.7
34
1.0
71
0.7
0.0
0.0
2021
2022
2023
2024 9M 2025
2019
2020
2021
2022
2023
2024 9M 2025
13
30%
25%
20%
15%
10%
5%
0%
5.0
4.0
3.0
2.0
1.0
0.0
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
-17%
till 2024
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
2030 Target
14
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 acquisition of South Africa territory 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)
15
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
50% rPET mix in packaging by 2030
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)
16
Conference Call Details
(a PepsiCo franchisee)
Varun Beverages Limited Q3 & 9M CY2025 Earnings Conference Call
Time
• Tuesday, October 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
17
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
18
Thank You!