For the
quarter ending March 2022, consolidated net sales (including other operating income) of Varun Beverages has increased 26.18% to Rs 2827.47 crore compared to quarter ended March 2021.
Operating profit margin has jumped from 17.03% to 18.78%, leading to 39.15% rise in operating profit to Rs 531.01 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 45.51% to 48.95%. Purchase of finished goods cost fell from 2.41% to 2.00%. Employee cost decreased from 9.93% to 9.26%. Other expenses fell from 26.26% to 21.92%. Other income rose 48.52% to Rs 8.51 crore. PBIDT rose 39.28% to Rs 539.52 crore. Provision for interest fell 18.95% to Rs 46.96 crore. PBDT rose 49.53% to Rs 492.56 crore. Provision for depreciation fell 2.52% to Rs 131.32 crore. Profit before tax grew 85.55% to Rs 361.24 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 90.14 crore, compared to Rs 57.93 crore. Effective tax rate was 24.95% compared to 29.75%. Minority interest increased 125.20% to Rs 16.89 crore. Net profit attributable to owners of the company increased 96.67% to Rs 254.21 crore. Promoters’ stake was 64.89% as of 31 March 2022 ,compared to 66.40% as of 31 March 2021 . Promoters pledged stake was 0.04% as of 31 March 2022
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 declined from Rs 6,451.20 crore as of 31 December 2020 to Rs 6,224.58 crore as of 31 December 2021. Intangible assets increased from Rs 24.23 crore to Rs 582.80 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
Total sales volume grew by
18.7% to 17.97 crore cases in Q1 CY2022 from 15.14 crore cases in Q1 CY2021
driven by strong demand across geographies.
CSD constituted 70%, Juice
Based Drinks 7% and Packaged Drinking Water 23% of total sales volumes in Q1
CY2022.
Realization per case for Q1
CY22 improved by 6.3% on YoY basis to Rs 157.3 per case driven by price hike in
select SKUs, change in SKU mix and higher realization in international markets.
Finance cost in Q1 CY2022
declined by 19.0% to Rs. 469.6 million primarily because of lower average cost
of borrowing.
During Q1 CY 2022, the new
beverage manufacturing plant in Bihar and the new backward integration plant in
Jammu & Kashmir commenced commercial production.
During the quarter, the
Company has written-off its plant and machinery (CSD Glass and Can line) at
Roha plant in Maharashtra which had sub-optimal capacity utilization / mix (WDV
of Rs 14.57 crore) and moved the packaged drinking water line to Paithan plant
in Maharashtra.
Board of Director’s
recommended Bonus Issue of Equity Shares in the proportion of 1 Equity Share of
Rs 10 each for every 2 Equity Shares of Rs 10 each held by the shareholders of
the Company as on the record date by capitalizing the reserves(share premium
account).
Management Comments :
Mr.
Ravi Jaipuria, Chairman, Varun Beverages Limited said, “We have started the
year on a strong note, delivering notable growth across all parameters. Robust
demand in both domestic and international markets, also supported by the early
onset of summer in India, translated to healthy volumes during the quarter.
This along with improved net realizations resulted in a solid net revenue
growth of 26.2% in Q1 CY2022. On the profitability front as well, we have
delivered enhanced performance despite significant increase in input costs
during the quarter. Our EBITDA grew by 39.1% and our margins improved to 18.8%
in Q1 CY2022. On the demand front, we are seeing a solid uptick in consumption.
The summer season in the domestic market has begun well and as we enter the
peak months, we are well prepared to cater to the anticipated demand by
optimizing our capacity utilization across all our plants and further enhancing
our reach across established and underpenetrated markets. During the quarter,
the Board approved the proposal to manufacture “Kurkure Puffcorn” for PepsiCo
India as part of their network of co-packers. The commercial production is
expected to begin from Q3 CY2022. As we look ahead, on the back of an improving
demand environment, we remain confident of delivering healthy volume growth in
the medium to longer term. We are also happy to share that as a token of
appreciation to all our shareholders, the Board today has recommended a bonus
issue of 1 equity share for every 2 equity shares held by shareholders of the
Company as on the record date. Overall, our initiatives towards improving our
market share, building infrastructure, and expanding reach continue to hold us
in good stead and we are confident of delivering strong and sustainable growth
going forward.”
| Varun Beverages : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202203 | 202103 | Var.(%) | 202112 | 202012 | Var.(%) |
|---|
| Net Sales (including other operating income) | 2,827.47 | 2,240.89 | 26.18 | 8,823.23 | 6,450.14 | 36.79 | | OPM (%) | 18.78 | 17.03 | 175 bps | 18.75 | 18.63 | 12 bps | | OP | 531.01 | 381.62 | 39.15 | 1,654.64 | 1,201.87 | 37.67 | | Other Inc. | 8.51 | 5.73 | 48.52 | 67.93 | 36.97 | 83.74 | | PBIDT | 539.52 | 387.35 | 39.28 | 1,722.57 | 1,238.84 | 39.05 | | Interest | 46.96 | 57.94 | -18.95 | 184.70 | 281.10 | -34.29 | | PBDT | 492.56 | 329.41 | 49.53 | 1,537.87 | 957.74 | 60.57 | | Depreciation | 131.32 | 134.72 | -2.52 | 531.26 | 528.7 | 0.48 | | PBT | 361.24 | 194.69 | 85.55 | 1006.61 | 429.04 | 134.62 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 0 | 0 | - | | PBT before EO | 361.24 | 194.69 | 85.55 | 1006.61 | 429.04 | 134.62 | | EO Income | 0 | 0 | - | 0 | -66.53 | - | | PBT after EO | 361.24 | 194.69 | 85.55 | 1006.61 | 362.51 | 177.68 | | Taxation | 90.14 | 57.93 | 55.60 | 260.56 | 5.23 | 4,882.03 | | PAT | 271.1 | 136.76 | 98.23 | 746.05 | 357.28 | 108.81 | | Minority Interest (MI) | 16.89 | 7.5 | 125.20 | 52 | 28.28 | 83.88 | | Net profit | 254.21 | 129.26 | 96.67 | 694.05 | 329 | 110.96 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 254.21 | 129.26 | 96.67 | 694.05 | 329 | 110.96 | | EPS (Rs)* | 5.87 | 2.99 | 96.67 | 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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