Conference Call with Varun Beverages Management and Analysts on Q2CY24 Performance and Outlook. Listen to the full earnings transcript.
Non-Alcoholic Beverages company Varun Beverages announced Q2FY24 & H1FY24 results: Q2FY24 Financial Highlights: Revenue grew 28.3% YoY to Rs 71,968.6 million EBITDA higher by 31.8% YoY to Rs 19,912.2 million PAT higher by 25.5% YoY to Rs 12,618.3 million H1FY24 Financial Highlights: Revenue grew 21.1% YoY to Rs 1,15,141.8 million EBITDA higher by 29.1% YoY to Rs 29,799.8 million PAT increased by 25.3% to Rs 18,098.2 million Commenting on the performance for Q2CY24 Ravi Jaipuria, Chairman, Varun Beverages said, “We are pleased to report robust performance for the second quarter of CY2024, achieving a consolidated sales volume growth of 28.1%, which includes volumes from BevCo. The impressive volume growth of 22.9% in India primarily contributed to this outstanding performance, supported by our expanded capacities, enhanced distribution network, and a strong summer season. Meanwhile, our international markets remained relatively flat, moreover it was a seasonally weak quarter for African market. We are excited to announce further expansion in our partnership with PepsiCo, having entered into an Exclusive Snacks Franchising Appointment to manufacture, distribute, and sell "Simba Munchiez" in Zimbabwe by October 2025 and in Zambia by April 2026. This follows our recent announcement to manufacture and package Cheetos in Morocco by May 2025. These agreements complement our existing distribution of PepsiCo’s portfolio, marking another significant step forward in our strong, symbiotic partnership. Additionally, we are pleased to share that we have commenced commercial production of carbonated soft drinks and packaged drinking water at our Greenfield facility in DRC. With the region representing an untapped market for PepsiCo, this expansion offers a huge growth opportunity for us. In line with our dividend policy, the Board of Directors has approved an interim dividend of 25% of the face value, i.e., Rs 1.25 per share. Additionally, the Board has considered and recommended the subdivision/split of existing equity shares of the Company from 1 equity share with a 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. This is subject to the approval of equity shareholders of the Company. This is intended for wider retail participation. With strong performance in a key quarter, we are on track to deliver healthy double-digit growth in this calendar year. India remains a high-demand market with massive growth potential, driven by a growing consuming class and a young population. To capitalize on this demand, we are focused on further strengthening our infrastructure, distribution network, and product portfolio. With a focus on strategic growth and leveraging new opportunities in both India and international markets, we are confident in our ability to deliver sustainable value to all stakeholders.” Result PDF