For
the quarter ending June 2022, consolidated net sales (including other operating income) of Varun Beverages has increased 102.25% to Rs 4954.82 crore compared to quarter ended june 2021. Operating profit margin has jumped from 23.30% to 25.24%, leading to 119.09% rise in operating profit to Rs 1,250.61 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 42.65% to 47.54%. Purchase of finished goods cost fell from 1.23% to 1.02%. Employee cost decreased from 10.41% to 6.38%. Other expenses fell from 21.29% to 19.36%. Other income fell 57.07% to Rs 10.48 crore. PBIDT rose 111.87% to Rs 1261.09 crore. Provision for interest fell 0.81% to Rs 46.4 crore. Loan funds rose to Rs 2,370.55 crore as of 30 June 2022 from Rs 1,733.93 crore as of 30 June 2021. Inventories rose to Rs 1,795.23 crore as of 30 June 2022 from Rs 1,274.69 crore as of 30 June 2021. Sundry debtors were lower at Rs 322.19 crore as of 30 June 2022 compared to Rs 323.84 crore as of 30 June 2021. Cash and bank balance rose to Rs 301.55 crore as of 30 June 2022 from Rs 148.37 crore as of 30 June 2021.
PBDT rose 121.48% to Rs 1214.69 crore. Provision for depreciation rose 18.86% to Rs 153.07 crore. Fixed assets increased to Rs 6,271.13 crore as of 30 June 2022 from Rs 5,891.00 crore as of 30 June 2021. Intangible assets declined from Rs 582.56 crore to Rs 579.83 crore.
Profit before tax grew 152.97% to Rs 1,061.62 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 259.61 crore, compared to Rs 100.85 crore. Effective tax rate was 24.45% compared to 24.03%.
Minority interest increased 36.94% to Rs 14.57 crore. Net profit attributable to owners of the company increased 155.52% to Rs 787.44 crore. Equity capital increased from Rs 433.03 crore as of 30 June 2021 to Rs 649.55 crore as of 30 June 2022. Per share face Value remained same at Rs 10.00.
Promoters’ stake was 63.90% as of 30 June 2022 ,compared to 65.82% as of 30 June 2021 . Promoters pledged stake was 0.04% as of 30 June 2022
For year-to-date (YTD) results analysis.
Net sales (including other operating income) of Varun Beverages has increased 65.91% to Rs 7782.29 crore. Operating profit margin has jumped from 20.30% to 22.89%, leading to 87.06% rise in operating profit to Rs 1,781.61 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 44.10% to 48.07%. Purchase of finished goods cost fell from 1.83% to 1.39%. Employee cost decreased from 10.17% to 7.47%. Other expenses fell from 23.81% to 20.33%. Other income fell 36.99% to Rs 18.99 crore. PBIDT rose 83.26% to Rs 1800.6 crore. Provision for interest fell 10.86% to Rs 93.35 crore. Loan funds rose to Rs 2,370.55 crore as of 30 June 2022 from Rs 1,733.93 crore as of 30 June 2021. Inventories rose to Rs 1,795.23 crore as of 30 June 2022 from Rs 1,274.69 crore as of 30 June 2021. Sundry debtors were lower at Rs 322.19 crore as of 30 June 2022 compared to Rs 323.84 crore as of 30 June 2021. Cash and bank balance rose to Rs 301.55 crore as of 30 June 2022 from Rs 148.37 crore as of 30 June 2021.
PBDT rose 94.48% to Rs 1707.25 crore. Provision for depreciation rose 7.93% to Rs 284.39 crore. Fixed assets increased to Rs 6,271.13 crore as of 30 June 2022 from Rs 5,891.00 crore as of 30 June 2021. Intangible assets declined from Rs 582.56 crore to Rs 579.83 crore.
Profit before tax grew 131.61% to Rs 1,422.86 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 349.75 crore, compared to Rs 158.78 crore. Effective tax rate was 24.58% compared to 25.85%.Minority interest increased 73.43% to Rs 31.46 crore. Net profit attributable to owners of the company increased 138.13% to Rs 1,041.65 crore.
Equity capital increased from Rs 433.03 crore as of 30 June 2021 to Rs 649.55 crore as of 30 June 2022. Per share face Value remained same at Rs 10.00.
Promoters’ stake was 63.90% as of 30 June 2022 ,compared to 65.82% as of 30 June 2021 . Promoters pledged stake was 0.04% as of 30 June 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 increased to Rs 6,783.15 crore as of 31 December 2021 from Rs 5,894.00 crore as of 31 December 2020. Intangible assets declined from Rs 581.43 crore to 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
Board of
Director’s have recommended an interim dividend of Rs 2.5 per share. Record
date for the purpose is 12th Aug 2022.
Total sales
volume grew by 96.9% to 30 crore cases in Q2 CY2022 from 15.2 crore cases in Q2
CY2021 driven by strong demand during the peak season and return to normalcy.
CSD constituted
73%, Juice Based Drinks 9% and Packaged Drinking Water 18% of total sales
volumes in Q2 CY2022.
Sales volumes in
India grew by 106.4% YoY in Q2 CY2022 to 26.2 crore cases and in International
markets grew by 49.2% YoY to 3.8 crore cases.
Realization per
case for Q2 CY22 improved by 2.7% on YoY basis to Rs 165 per case driven by price
hike in select SKUs, reduction in discounts/incentives, and improvement in mix.
Company has moved
to new tax regime from this quarter. New tax regime takes away many exemptions,
however the reduced tax rates still shall have a saving of 3% (approx).
The total of
impairments and write-offs during H1 CY 2022 is Rs 46.4 crore.
During H1 CY2022,
the net capex included Rs 670 crore primarily for setting-up of new greenfield
production facilities in Bihar & Jammu and brownfield expansion at Sandila
facility. The net capex includes capitalization of CWIP amounting Rs 500 crore which
was outstanding as of Dec21.
Capacity
utilization in India during the peak month was close to 90% driven by best ever
sales volumes.