Conference Call with Varun Beverages Management and Analysts on Q3FY25 Performance and Outlook. Listen to the full earnings transcript.
Food & Beverages company Varun Beverages announced Q4CY24 results Revenue from operations (net of excise / GST) grew by 38.3% YoY to Rs 36,887.9 million. EBITDA increased by 38.7% to Rs 5,799.7 million from Rs 4,182.9 million. PAT increased by 36.1% to Rs 1,956.4 million from Rs 1,437.6 million in Q4CY23 driven by volume growth & improved margins. Commenting on the performance for Q4 & CY2024, Ravi Jaipuria, Chairman, Varun Beverages, said: "We are pleased to conclude CY24 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.” Result PDF