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For the quarter ended Dec 2021, consolidated net sales (including other operating income) of Varun Beverages has increased 30.31% to Rs 1734.34 crore compared to quarter ended Dec 2020. Operating profit margin has declined from 12.94% to 11.97%, leading to 20.52% rise in operating profit to Rs 207.57 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 40.20% to 44.30%. Purchase of finished goods cost rose from 1.20% to 2.37%. Employee cost decreased from 16.97% to 14.43%. Other expenses fell from 29.03% to 27.38%. Other income fell 84.74% to Rs 0.85 crore. PBIDT rose 17.22% to Rs 208.42 crore. Provision for interest fell 39.85% to Rs 37.29 crore. Loan funds declined from Rs 2,693.48 crore as of 31 December 2020 to Rs 2,441.82 crore as of 31 December 2021. Inventories rose to Rs 1,448.09 crore as of 31 December 2021 from Rs 928.80 crore as of 31 December 2020. Sundry debtors were lower at Rs 221.25 crore as of 31 December 2021 compared to Rs 241.80 crore as of 31 December 2020. Cash and bank balance rose to Rs 336.62 crore as of 31 December 2021 from Rs 190.05 crore as of 31 December 2020. PBDT rose 47.77% to Rs 171.13 crore. Provision for depreciation fell 4.01% to Rs 129.27 crore. Fixed assets increased to Rs 6,783.15 crore as of 31 December 2021 from Rs 6,451.20 crore as of 31 December 2020. Intangible assets stood at Rs 24.23 crore. Profit before tax reported profit of Rs 41.86 crore compared to loss of Rs 18.86 crore. Share of profit/loss were nil in both the periods. Provision for tax was debit of Rs 9.27 crore, compared to credit of Rs 11.62 crore. Effective tax rate was 22.15% compared to 61.61%. Minority interest increased 28.90% to Rs 16.10 crore. Net profit attributable to owners of the company stood at Rs 16.49 crore compared to loss of Rs 19.73 crore. Equity capital increased from Rs 288.69 crore as of 31 December 2020 to Rs 433.03 crore as of 31 December 2021. Per share face Value remained same at Rs 10.00. Promoters’ stake was 64.89% as of 31 December 2021 ,compared to 66.40% as of 31 December 2020 . Promoters pledged stake was 0.04% as of 31 December 2021
Full year results analysis.
Net sales (including other operating income) of Varun Beverages has increased 36.79% to Rs 8823.23 crore. Operating profit margin has jumped from 18.63% to 18.75%, leading to 37.67% rise in operating profit to Rs 1,654.64 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 41.57% to 44.48%. Purchase of finished goods cost rose from 1.43% to 1.85%. Employee cost decreased from 13.76% to 11.29%. Other expenses fell from 24.66% to 23.83%. Other income rose 83.74% to Rs 67.93 crore. PBIDT rose 39.05% to Rs 1722.57 crore. Provision for interest fell 34.29% to Rs 184.7 crore. Loan funds declined from Rs 2,693.48 crore as of 31 December 2020 to Rs 2,441.82 crore as of 31 December 2021. Inventories rose to Rs 1,448.09 crore as of 31 December 2021 from Rs 928.80 crore as of 31 December 2020. Sundry debtors were lower at Rs 221.25 crore as of 31 December 2021 compared to Rs 241.80 crore as of 31 December 2020. Cash and bank balance rose to Rs 336.62 crore as of 31 December 2021 from Rs 190.05 crore as of 31 December 2020. PBDT rose 60.57% to Rs 1537.87 crore. Provision for depreciation rose 0.48% to Rs 531.26 crore. Fixed assets increased to Rs 6,783.15 crore as of 31 December 2021 from Rs 6,451.20 crore as of 31 December 2020. Intangible assets stood at Rs 24.23 crore. Profit before tax grew 134.62% to Rs 1,006.61 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 260.56 crore, compared to Rs 5.23 crore. Effective tax rate was 25.88% compared to 1.44%. Minority interest increased 83.88% to Rs 52.00 crore. Net profit attributable to owners of the company increased 110.96% to Rs 694.05 crore. Equity capital increased from Rs 288.69 crore as of 31 December 2020 to Rs 433.03 crore as of 31 December 2021. Per share face Value remained same at Rs 10.00. Promoters’ stake was 64.89% as of 31 December 2021 ,compared to 66.40% as of 31 December 2020 . Promoters pledged stake was 0.04% as of 31 December 2021 Cash flow from operating activities increased to Rs 1,231.42 crore for year ended December 2021 from Rs 1,011.99 crore for year ended December 2020. Cash flow used in acquiring fixed assets during the year ended December 2021 stood at Rs 834.80 crore, compared to Rs 559.67 crore during the year ended December 2020. Other Highlights
During Q4 CY2021, sales
volume grew by 28.5% to 11.20 crore cases. For CY 2021 total sales volume grew
by 33.8% to 56.91 crore cases driven by strong recovery in demand and low base
of CY 2020.
Realization per case for CY
2021 increased by 2.2% YoY driven by improvement in realizations in
international operations. CSD constituted 70.3%, Juice 6.4% and Packaged
Drinking water 23.3% of total sales volumes in CY 2021.
Finance cost declined by
39.8% during Q4 CY 2021 and by 34.3% in CY 2021 primarily because of lower
average cost of borrowing.
During CY 2021, net capex
was Rs 350 crore.
Board of Director’s
recommended an interim / final dividend of Rs 2.50 per share during CY 2021.
Total cash outflow for dividend payout was Rs 108.26 crore.
Management Comments :
Mr.
Ravi Jaipuria, Chairman, Varun Beverages Limited said, “We have ended the year
on a strong and resilient note, delivering a top line growth of 37% in the
year. The performance was driven by a robust volume growth of 34%. While the
short-term disruptions due to the second wave of the pandemic severely impacted
our domestic business in the seasonally strong month of May, our team was able
to handle and mitigate the impact to a large extent based on learnings from
last year. As restrictions started easing in the domestic market, we saw a fast
recovery in demand, that brought back the growth momentum with which we started
the year. Improved offtake across our international territories further aided
growth during the year. We continue to sustain cost-optimisation measures that
we had undertaken during the pandemic period. Despite decline in our gross
margins due to higher pet prices, our cost optimization measures in
combination, with a higher operating leverage on the back of strong volume
growth has translated to enhanced operating performance in 2021. I am also
pleased to share that even in a seasonally soft quarter we have reported
profits for the first time ever in Q4 on account of these measures, increased
operating leverage, improvement in profitability of international operations
and lower financing cost. Financing cost came down significantly during the
year led by lowering of average cost of borrowing. For the full year our PAT
grew by 109% because of these measures and higher volume growth. On the whole,
we have delivered an encouraging performance during the year. The third wave of
Covid has not had any significant impact on our business and we will continue
to further strengthen our distribution in under-penetrated territories,
enhancing volumes, and increasing our market share. We are confident of
delivering a much stronger performance going forward.”
| Varun Beverages : Consolidated Results | | | Quarter ended | Year ended |
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| Particulars | 202112 | 202012 | Var.(%) | 202112 | 202012 | Var.(%) |
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| Net Sales (including other operating income) | 1,734.34 | 1,330.89 | 30.31 | 8,823.23 | 6,450.14 | 36.79 | | OPM (%) | 11.97 | 12.94 | -97 bps | 18.75 | 18.63 | 12 bps | | OP | 207.57 | 172.23 | 20.52 | 1,654.64 | 1,201.87 | 37.67 | | Other Inc. | 0.85 | 5.57 | -84.74 | 67.93 | 36.97 | 83.74 | | PBIDT | 208.42 | 177.80 | 17.22 | 1,722.57 | 1,238.84 | 39.05 | | Interest | 37.29 | 61.99 | -39.85 | 184.70 | 281.10 | -34.29 | | PBDT | 171.13 | 115.81 | 47.77 | 1,537.87 | 957.74 | 60.57 | | Depreciation | 129.27 | 134.67 | -4.01 | 531.26 | 528.7 | 0.48 | | PBT | 41.86 | -18.86 | LP | 1006.61 | 429.04 | 134.62 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | | PBT before EO | 41.86 | -18.86 | LP | 1006.61 | 429.04 | 134.62 | | EO Income | 0 | 0 | - | 0 | -66.53 | - | | PBT after EO | 41.86 | -18.86 | LP | 1006.61 | 362.51 | 177.68 | | Taxation | 9.27 | -11.62 | PL | 260.56 | 5.23 | 4,882.03 | | PAT | 32.59 | -7.24 | LP | 746.05 | 357.28 | 108.81 | | Minority Interest (MI) | 16.1 | 12.49 | 28.90 | 52 | 28.28 | 83.88 | | Net profit | 16.49 | -19.73 | LP | 694.05 | 329 | 110.96 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 16.49 | -19.73 | LP | 694.05 | 329 | 110.96 | | EPS (Rs)* | 0.38 | -0.46 | LP | 16.03 | 8.99 | 78.25 | | | * EPS is on current equity of Rs 433.03 crore, Face value of Rs 10, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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