VARUN BEVERAGES LTD - One Page Profile
Varun Beverages Ltd has been associated with PepsiCo since the 1990s and is a key player in beverage industry and
one of the largest franchisee of PepsiCo in the world. The company produces and distributes a wide range of
carbonated soft drinks, non-carbonated drinks and packaged water sold under trademarks owned by
PepsiCo.PepsiCo brands produced and sold by the company include Pepsi, Seven-up, Mirinda Orange, Mountain
Dew, Tropicana Juices,energy drinks under the Sting and Sting Blue brandsand many more.
INR (Crs)
Key Finanacial Metrics Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Share Price - 5Y
Total Sales 7,130 6,450 8,823 13,173 16,043
Sales Growth (Y-o-Y) 39.65% -9.53% 36.79% 49.30% 21.78% 1520
Gross Profit Margins (%) 43.45% 48.38% 44.55% 40.02% 52.79% 1320
EBITDA Margins (%) 20.51% 18.84% 19.20% 21.73% 22.50% 1120
EBIT Margins (%) 13.66% 10.64% 13.18% 17.05% 18.25% 920
Net profit Margins (%) 6.58% 5.10% 7.87% 11.37% 12.82% 720
520
Earning Per Share (In Rs) 3.61 2.53 5.34 11.53 15.82
320
EPS Growth (Y-o-Y) 51.99% -29.85% 110.96% 115.77% 37.29% 120
Divinded Per Share (In Rs) 0.56 0.56 0.83 1.75 2.50
DPS Growth (Y-o-Y) 50.01% 0.00% 50.01% 110.01% 42.86%
Key Finanacial Ratios Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Holdings %
Price to Earnings 43.62x 80.39x 55.43x 57.37x 78.16x
EV/EBITDA 16.21x 24.26x 24.51x 31.26x 45.90x 6.74%
3.58%
EV/Sales 3.32x 4.57x 4.71x 6.79x 10.33x 63.09%
Price to Book Value 6.15x 7.51x 9.43x 16.84x 23.17x
Return on Equity (%) 14.09% 9.34% 17.01% 29.35% 29.64%
Return on Capital Employed (%) 17.67% 9.73% 17.08% 27.08% 28.17%
Product Portfolio (Brands Licensed to VBL) 26.58%
Promoters FIIs DIIs Public
Capital Structure
Share price as on 20-03-2024 1,400
No.of shares o/s 130
Market Capitalization 181,915
Add : Debt 5,431
Less : Cash (460)
Add : Minority Interest 1,482
Enterprise Value 188,368
What does Company do?
VBL - Demand delivery
• Production Facilities :
They invest in state-of-the-art manufacturing plants
Highlights of Annual Reoport FY23 & technologies to optimize production processes &
increase output.
• According to the company's most recent annual report, Varun Beverages, a prominent bottler of
beverage giant PepsiCo, plans to double its production capacity in the juice and value-added dairy • Sales & Distribution :
product divisions by 2024. They employ go-to-market (GTM) strategies that
• The continued growth of production facilities, with an emphasis on reacting to changing consumer encompass market egmentation, channel selection,
tastes and market trends, is central to expansion strategy for CY 2024. Co. is focusing especially on & pricing strategies. Additionally, they focus on
boosting production capabilities in the dairy products with added value & juices segments. The business efficient logistics management to ensure timely
has operations in six nations. delivery of their products.
• In 2023, 3 African nations—Morocco, Zambia, and Zimbabwe—contributed the remainder 17% of its
net revenues, with three markets on the Indian Subcontinent—India, Sri Lanka, & Nepal making up the • In-outlet Management :
remaining 83%. They strategically deploy visi-coolers & other point-
• According to VBL, a number of variables, including younger demographics, faster urbanization & rising of-sale materials in retail outlets to enhance product
wages, higher household spending, rural improvements, & improved electrification, will drive visibility & attract consumer attention.
significant development in the soft drink market in India. With skill, the industry responded to changing
consumer tastes and kept up a steady growth rate. • Consumer Push Management
• The energy drink market, which started to grow in 2022 & kept going through 2023, was one area They utilizes below-the-line (BTL) marketing
where this tenacity was most clear, according to the annual report. strategies for consumer push management They
• PepsiCo's franchise rights in South Africa, Lesotho, and Eswatini are owned by Bevco. Over 1.4 billion employ targeted promotional activities to influence
clients are currently being served by VBL as a whole. Nonetheless, its India business accounts for a consumer behavior & preferences
Disclaimer - This report is made for educational assignment & is meant for educational purpose only.The author of the report is not liable for any losses due to the actions takes basiis the report. It is
advisable to sonsult SEBI regostered research analyst before making any investments.
