Varun Beverages Announced Q1FY23 Result : Q2 CY2022: Revenue grew 102% YoY to Rs. 49,548 mn EBITDA higher by 119% YoY to Rs. 12,506 mn PAT higher by 152% YoY to Rs. 8,020 mn H1 CY2022: Revenue grew 66% YoY to Rs. 77,823 mn EBITDA higher by 87% YoY to Rs. 17,816 mn PAT increased by 136% to Rs. 10,731 mn Commenting on the performance for Q2 & H1 CY2022 Mr. Ravi Jaipuria, Chairman, Varun Beverages Limited said: “We are pleased to share that we have delivered an all-time high performance during the quarter. Our continuous effort to invest in our business despite the pandemic led disruption of peak season during the last two years and return of normalcy in day-to-day activities translated to robust demand leading to consolidated sales volume growth of 96.9% YoY. In addition, we were able to improve our realization per case by taking price hikes in select SKUs, reduction in discounts/incentives, and improving the mix leading to doubling of our topline during the quarter as compared to last year. On the profitability front, despite the inflationary raw material environment we witnessed limited impact on our gross margins during the quarter because of early stocking of key raw materials and improvement in realizations. Further, operating leverage due to high volume growth translated into improved EBITDA margins of 25.2%. Healthy cash flows during the period enabled us to significantly reduce our debt thereby strengthening our balance sheet position. I am happy to share that in recognition of our operational excellence, end to end execution capabilities, governance practice and strong track record, VBL was recently awarded from PepsiCo as ‘Best Bottler in Africa, Middle East and South Asia (AMESA) region’ for the year 2021. I am also pleased to share that in-line with our dividend policy, the Board of Directors has recommended an interim dividend of Rs. 2.5 per share. With sustainability being a core principle of our business model, we continue to undertake efforts towards PET-recycling and improving energy & water efficiencies with a goal of having a net positive impact on the planet. On the demand front, we are seeing enhanced consumption trends across markets. Directionally, we continue to implement strategic initiatives to solidify our market position as a key player in the global beverage industry and are confident of continuing our journey of sustainable value creation for all stakeholders.” Result PDF
Conference Call with Varun Beverages Ltd (VBL) Management and Analysts on Q1FY23 Performance and Outlook. Listen to the full earnings transcript.