Varun Beverages announced Q3CY23 & 9MCY23 results: 1. Financial Performance: - Revenue grew by 22% YoY to Rs 38,705 million in Q3CY23. - EBITDA increased by 26% YoY to Rs 8,821 million in Q3CY23. - PAT higher by 30% YoY to Rs 5,141 million in Q3CY23. - Consolidated sales volumes grew by 15.4% to 220 million cases in Q3CY23. - Net realization increased by 5.6% to Rs 176.3 per case in Q3CY23. - EBITDA margins improved by 79 bps to 22.8% in Q3CY23. - PAT increased by 33.3% to Rs 19,580.5 million in 9MCY23. 2. Operational Updates: - Significant investments made to develop greenfield and brownfield manufacturing facilities in India. - Progress on the greenfield facility in DRC, slated to be commissioned in upcoming months. - Capacity enhancement for juices and value-added dairy beverages to align with evolving consumer demands. - Focus on sustainability and environmental stewardship with investments in green energy and PET reuse. 3. Market and Growth Outlook: - Consolidated sales volumes registered a solid growth of 15% in Q3CY23. - Both Indian and international markets contributed to sales volume growth. - Indian beverage market seen as offering a monumental growth opportunity. - Strategic initiatives aimed at strengthening position in the global beverage industry. Commenting on the performance for Q3CY23 & 9MCY23 Ravi Jaipuria, Chairman, Varun Beverages said, "We are pleased to report a robust quarter, achieving a top-line growth of 22% and a PAT growth of 30% YoY. Demonstrating remarkable resilience, our consolidated sales volumes registered a solid growth of 15% making a strong comeback following the unseasonal rains in Q2 CY2023 in India. Both our Indian and international markets contributed to this achievement with a healthy double-digit growth. We have achieved notable progress on the operational front by making significant investments to develop both greenfield and brownfield manufacturing facilities throughout India. In addition, our greenfield facility in DRC is progressing well and is slated to be commissioned in the upcoming months. These strategic efforts are tailored to meet the rising consumption and to capture untapped market opportunities. As part of our commitment to diversifying and enhancing our portfolio, we are also enhancing our capacity for juices and value-added dairy beverages to align with evolving consumer demands. As part of our long-term vision and in line with PepsiCo’s global PEP+ objectives, we remain committed to sustainability and environmental stewardship. We are making investments that emphasize using green energy as well as reuse of PET which will be instrumental in mitigating environmental impact. These endeavors are aligned with our pledge to the environment and reflect our ambition to nurture a greener future. Given India's dynamic demographic landscape, marked by a burgeoning young population and evolving consumption patterns, we believe the Indian beverage market offers a monumental growth opportunity for the decades ahead. As we intensify our foothold in India and expand our reach in Africa, our strategic initiatives are aimed towards strengthening our position in the global beverage industry.” Result PDF
Conference Call with Varun Beverages Management and Analysts on Q3CY23 Performance and Outlook. Listen to the full earnings transcript.