Varun Beverages Ltd. share price target

Cash flows from acquired territories in FY21E to reduce debt VBL's domestic sales volumes in Q4CY19 were at 62 mn cases with organic growth of 10% YoY on account of increase in distribution in under penetrated rural regions. For CY19, total sales volumes were up 44.9% YoY to 493 million cases compared to 340 million cases in 2018. Overall organic volume growth for CY19 was at 17.2% supported by robust performance in India (organic growth 13.1%) as well as international territories (organic growth 34%). We expect revenue CAGR of 12% in CY19-21E. We believe...

Healthy business growth in domestic, international markets VBL's domestic sales volumes in Q3CY19 were at 98 million (mn) cases with organic growth of 17.5% YoY on account of increase in distribution in under penetrated rural regions. Its international volumes were at 26 mn with organic growth of 27% driven by double digit growth in all overseas operations expect Zambia. Volume contribution from acquired territories were at 32 mn cases. With the recent acquisition, capacity utilisation for VBL was at 60% against erstwhile 70%, which gives tremendous scope for...

Sowing for Future Thirst:VBLs optimistic approach of continuous expansion in highly under-penetrated areas has created its presence in 5 overseas territories

Varun Beverages Ltd. declared its Q2CY19 results recently. Net Revenues grew by 37% YoY to `2811crs. led by robust volume growth of 43.3%. EBITDA for Q2CY19 grew by 37% on a YoY basis to `788crs. Margins expanded by 10 bps to 28%. PAT for Q2CY19 increased by 32% YoY to `405crs. This was on the back of robust volume growth in international operations. VBL now account for 80%+ of PepsiCo India's beverage sales volumes in India...

Varun Beverages reported revenues at | 2810.5 crore, up 36.5%, led by 43.3% overall volume growth on the back of acquisition of south and west sub-territories from PepsiCo that contributed for two months in the quarter. The India organic volume growth of 18.5% has been led by extended summer and the peak season demand. International volume growth of 34.2% on account of healthy growth in Morocco and Zimbabwe. Despite the integration of low margin South & West territories, EBITDA increased 37.1% to | 787.8 crore and the company has been able to maintain its operating...

Varun Beverages (VBL) made an announcement on bonus shares on June 17, 2019. The ratio was one bonus share for every two equity shares i.e. 1:2. The record date for the same is July 27, 2019 while the ex-date for the same is today i.e. July 25, 2019. Consequently, Varun Beverages' share price, as per yesterday's closing price, has adjusted to | 600/share from | 900/share....

Net Revenues grew 24% YoY to `1359crs. led by robust volume growth of 12.3%. EBITDA grew by 27% YoY to `218crs while EBITDA margins expanded by 30bps to16.1%. PAT for Q1CY19 increased by 103% YoY to `40crs. VBL now accounts for ~80%+ of PepsiCo India's beverage sales in India from 51% earlier. The company has also expanded its presence...

VBL has been delivering robust volume growth aided by territory acquisition and distribution rights for Tropicana. Non-carbonated (NCD) and bottled water segments now contributes more than 29% of total volumes vs. <15% share in CY16. In CY18, sales volume for Tropicana juices grew 57% YoY and contributed ~6% to total sales volumes. With the launch of NCB's like Masala Nimbooz, Tropicana Fruitz, 7 Up Revive & Sting, VBL can establish its leadership position in the NCD segment, going forward. VBL's ongoing capex plan of | 450 crore for the production of both Tropicana and Gatorade...

Varun Beverages Ltd. declared its Q4CY18 results recently. Net Revenues grew by 49% YoY to `786crs. led by robust volume growth of 40%. EBITDA for Q4CY18 grew by 46% on a YoY basis to `48crs. Margins merely contracted by 10bps to 6.1%. Net loss for Q4CY18 decreased by 1.7% YoY to `71.5 crs. VBL now account for 80%+ of PepsiCo India's...

Revenues witnessed growth of 49% to | 785.6 crore (I-direct estimate | 600.1 crore) led by 39.4% volume growth and 10% realisation increase mainly due to a change in product mix in favour of juices. Volume growth was led by aggressive territory acquisition in MP, Odisha, Bihar and Jharkhand in previous year. The organic volume growth in India was 28% during the quarter Operating profit more than doubled from | 22.5 crore to | 47.8 crore (I-direct estimate: | 35.2 crore) in Q4. Operating margins...