In This Article:
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Revenue from Operations: INR 55,669 million, a 28.9% year-on-year increase.
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Consolidated Sales Volume: 312.4 million cases, up 30.1% from 240.2 million cases in Q1 2024.
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Organic Volume Growth in India: 15.5% increase.
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Gross Margin: 54.6%, a decline of 171 basis points from Q1 2024.
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EBITDA: INR 12,639.6 million, a 27.8% increase from INR 9,887.6 million in Q1 2024.
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EBITDA Margin in India: Improved by 111 basis points.
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Consolidated EBITDA Margin: Declined by 20 basis points.
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Depreciation: Increased by 45.3% due to new plant commissioning and international operations.
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Interest Income: INR 108 million in India.
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Interest Cost in International Markets: Includes INR 86 million lease rentals in South Africa.
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PAT (Profit After Tax): INR 7,313.6 million, a 33.5% year-on-year increase.
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Dividend: Interim dividend of 25% of face value, INR 0.50 per share, total cash outflow of INR 1,691 million.
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Credit Rating: Upgraded to CRISIL AAA stable.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Consolidated sales volume grew by 30.1% year-on-year, driven by strong organic growth in India and contributions from South Africa and DRC.
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New greenfield production facilities in Kangra and Prayagraj have commenced operations, enhancing capacity for the peak summer season.
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Backward integration facilities in Prayagraj and DRC have been established, improving operational efficiency and supply chain robustness.
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The company has initiated the distribution and sale of PepsiCo snack products in Zimbabwe and Zambia, expanding its portfolio in high-potential regions.
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CRISIL upgraded Varun Beverages Ltd's long-term credit rating to CRISIL AAA stable, reflecting strong governance and consistent performance.
Negative Points
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Gross margins declined by 171 basis points to 54.6% due to a higher mix of lower-margin own brands in South Africa and a focus on CSD in India.
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Consolidated net realization per case declined by 0.9% due to lower per case realization in South Africa.
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Depreciation increased by 45.3% due to the commissioning of new plants and inclusion of operations from South Africa and DRC.
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Margins in South Africa remain lower at 14.4%, with a significant portion of sales from lower-margin own brands.
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The termination of agreements in Tanzania and Ghana may impact growth aspirations in the African continent.
Q & A Highlights
Q: Can you provide early insights on the performance of new product launches like Sting Gold and the lower price point pack of Gatorade? A: Ravi Jaipuria, Non-Executive Chairman: It's too early to assess the market reaction to Sting Gold and Gatorade's new pack. Initial acceptance is positive, but a clearer picture will emerge in the next quarter.