In This Article:
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Revenue Growth: Increased by 24.7% to INR 20,007 crore in CY 2024.
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Consolidated Sales Volume: Grew by 23.2% to 1,124 million cases.
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India Volume Growth: 11.4% organic growth.
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International Organic Growth: 6.3%, impacted by sugar tax in Zimbabwe.
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Net Realization per Case: Increased by 1.3% to INR 177.9.
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Gross Margin: Expanded by 165 basis points to 55.5%.
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EBITDA Growth: Increased by 30.5% to INR 47,110 million.
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EBITDA Margin: Improved by 105 basis points to 23.5%.
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PAT Growth: Increased by 25.3% to INR 26,342 million.
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Net Debt Free: Achieved through repayment of loans using QIP proceeds.
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CapEx: INR 45,000 million at the end of 2024, with significant investments in greenfield and brownfield expansions.
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Dividend: Final dividend of INR 0.50 per equity share recommended.
Release Date: February 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Varun Beverages Ltd (NSE:VBL) reported a strong financial performance with a 24.7% increase in consolidated revenue and a 30.5% growth in EBITDA for the year.
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The company expanded its geographical presence by entering new territories such as South Africa, Namibia, Botswana, Mozambique, Madagascar, and the Democratic Republic of Congo.
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India's volume growth was robust at 11.4%, supported by a strong distribution network and operational execution.
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The company successfully raised INR 7,500 crore through a qualified institutional placement, strengthening its financial position.
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Varun Beverages Ltd (NSE:VBL) is focusing on healthier product offerings, with low sugar and no sugar products now comprising 53% of consolidated sales volume.
Negative Points
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The transition to a zero sugar portfolio in Zimbabwe due to a sugar tax resulted in restricted international organic growth of 6.3%.
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Margins in South Africa are currently lower than in India, partly due to a high mix of own brands and fixed costs associated with new CapEx.
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Depreciation and finance costs increased significantly by 39.1% and 68% respectively, impacting overall profitability.
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The company faces competition from lower-priced brands in India, which could potentially impact market share.
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There is a reliance on modern trade channels in South Africa, which has diluted margins; efforts are being made to shift focus to general trade.
Q & A Highlights
Q: The India business showed single-digit volume growth in the second half. Is this due to seasonality, and do you expect double-digit growth in the future? A: Ravi Jaipuria, Non-Executive Chairman, stated that growth should not be judged on a quarterly basis due to seasonal variations. He affirmed that the company expects to maintain double-digit annual growth, which has been consistent historically.