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Results
03-May-23
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Analysis
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Varun Beverages
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NP up 68.79%
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For
the quarter ending Mar 2023, consolidated Net sales (including other operating income) of Varun Beverages has increased 37.68% to Rs 3892.98 crore compared to quarter ended Mar 2022. Operating profit margin has jumped from 18.78% to 20.50%, leading to 50.29% rise in operating profit to Rs 798.03 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 48.95% to 47.59%. Purchase of finished goods cost rose from 2.00% to 2.95%. Employee cost decreased from 9.26% to 8.22%. Other expenses fell from 21.92% to 21.91%. Other income rose 19.15% to Rs 10.14 crore. PBIDT rose 49.79% to Rs 808.17 crore. Provision for interest rose 33.24% to Rs 62.57 crore. PBDT rose 51.37% to Rs 745.6 crore. Provision for depreciation rose 31.13% to Rs 172.2 crore. Profit before tax grew 58.73% to Rs 573.40 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 134.8 crore, compared to Rs 90.14 crore. Effective tax rate was 23.51% compared to 24.95%. Minority interest decreased 43.75% to Rs 9.50 crore. Net profit attributable to owners of the company increased 68.79% to Rs 429.07 crore. Promoters’ stake was 63.90% as of 31 March 2023 ,compared to 64.89% as of 31 March 2022 . Promoters pledged stake was 0.04% as of 31 March 2023 ,compared to 0.04% as of 31 March 2022 .
Full year results analysis.
Net sales (including other operating income) of Varun Beverages has increased 49.30% to Rs 13173.14 crore. Operating profit margin has jumped from 18.75% to 21.17%, leading to 68.50% rise in operating profit to Rs 2,788.10 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 44.48% to 47.47%. Purchase of finished goods cost fell from 1.85% to 1.39%. Employee cost decreased from 11.29% to 9.00%. Other expenses fell from 23.83% to 21.51%. Other income fell 42.81% to Rs 38.85 crore. PBIDT rose 64.11% to Rs 2826.95 crore. Provision for interest rose 0.77% to Rs 186.12 crore. Loan funds rose to Rs 3,883.81 crore as of 31 December 2022 from Rs 3,386.76 crore as of 31 December 2021. Inventories rose to Rs 1,993.89 crore as of 31 December 2022 from Rs 1,448.09 crore as of 31 December 2021. Sundry debtors were higher at Rs 299.34 crore as of 31 December 2022 compared to Rs 221.25 crore as of 31 December 2021. Cash and bank balance declined from Rs 336.62 crore as of 31 December 2021 to Rs 285.27 crore as of 31 December 2022. PBDT rose 71.72% to Rs 2640.83 crore. Provision for depreciation rose 16.17% to Rs 617.19 crore. Fixed assets increased to Rs 6,963.71 crore as of 31 December 2022 from Rs 6,783.15 crore as of 31 December 2021. Intangible assets increased from Rs 24.23 crore to Rs 575.14 crore. Profit before tax grew 101.04% to Rs 2,023.64 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 473.52 crore, compared to Rs 260.56 crore. Effective tax rate was 23.40% compared to 25.88%. Minority interest increased 1.31% to Rs 52.68 crore. Net profit attributable to owners of the company increased 115.75% to Rs 1,497.43 crore. Equity capital increased from Rs 433.03 crore as of 31 December 2021 to Rs 649.55 crore as of 31 December 2022. Per share face Value remained same at Rs 10.00. Promoters’ stake was 63.90% as of 31 December 2022 ,compared to 64.89% as of 31 December 2021 . Promoters pledged stake was 0.04% as of 31 December 2022 ,compared to 0.04% as of 31 December 2021 . Cash flow from operating activities increased to Rs 1,790.03 crore for year ended December 2022 from Rs 1,231.42 crore for year ended December 2021. Cash flow used in acquiring fixed assets during the year ended December 2022 stood at Rs 1,800.99 crore, compared to Rs 834.80 crore during the year ended December 2021. Business Highlights
Board approved split of existing Equity
Shares of the Company from (One) Equity Share having face value of Rs 10 each
fully paid-up, into (Two) Equity Shares having face value of Rs 5 each fully
paid-up. Record date for the same will be decided soon.
Company commissioned a new production
facility at Kota, Rajasthan, as well as expanded its capacity at six existing
locations.
In Q1 CY23, Net realization increased by
10.4% to Rs 173.7 primarily due to price hike in selected SKUs taken towards
the end of base quarter last year and continued improvement in mix of smaller
SKUs (250ml).
Sales volume grew by 24.7% to 224.1
million cases in Q1 CY2023 from 179.7 million cases in Q1 CY2022 driven by
strong demand across regions in India. Domestic volumes grew by 28.0% YoY.
Depreciation increased by 31% and Finance
cost increased by 33% in Q1 CY2023 on account of capitalization of assets and
setting-up of new production facilities.
CSD constituted 71.2%, JBD 7.4% and
Packaged Drinking Water 21.4% in CY2023. Management Comments : Mr. Ravi Jaipuria, Chairman, Varun
Beverages Limited said, “We are pleased to share that the Company achieved
remarkable operational and financial performance during the quarter despite
weather disruptions in some parts of India in the month of March. Moving onto
our expansion plans, we are happy to report the commissioning of our greenfield
production facility at Kota, Rajasthan and brownfield expansion at 6
facilities. The additional Greenfield plant in Jabalpur, MP is expected to be
operational very soon. With regard to our international growth plans, construction
of a new production facility in DRC has already started. We expect the facility
to be operational before the year end. Our energy drink product has achieved a
significant share in our overall mix and has firmly established our leadership
position in the category. Our focus now turns towards new performers like Value
Added Dairy, Sports Drinks, and Juice segments to sustain the growth momentum.
These products continue to be well received by consumers, providing us with the
confidence that these products will fuel the Company`s next leg of growth. It
gives me immense pleasure to announce, as approved by shareholders in our
annual general body meeting, the final dividend of Re. 1 per share taking the
total dividend payout for the full year to level of Rs. 3.5 per share.
Furthermore, the Board recommended the split of existing equity shares of the
Company from One equity share having face value of Rs. 10 each into Two equity
shares having face value of Rs. 5 each. This is subject to the approval of
equity shareholders of the Company. We are also committed to safeguarding our
environment and promoting sustainability in all our operations. One of the key
ways we are doing this is by investing in PET recycling and implementing
measures to improve energy and water efficiency. Our goal is to have a net
positive impact on the environment, and we are continuously evaluating and
implementing new ways to minimize our ecological footprint. Overall, we are
encouraged by our strong start and remain confident about delivering good
performance this year. With our robust on-ground execution capabilities,
expanding manufacturing capacities, and increasing distribution reach, we
believe we are well-positioned to achieve sustainable growth in the medium to
long term.”
Varun Beverages : Consolidated Results | | Quarter ended | Year ended |
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Particulars | 202303 | 202203 | Var.(%) | 202212 | 202112 | Var.(%) |
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Net Sales (including other operating income) | 3,892.98 | 2,827.47 | 37.68 | 13,173.14 | 8,823.23 | 49.30 | OPM (%) | 20.50 | 18.78 | 172 bps | 21.17 | 18.75 | 241 bps | OP | 798.03 | 531.01 | 50.29 | 2,788.10 | 1,654.64 | 68.50 | Other Inc. | 10.14 | 8.51 | 19.15 | 38.85 | 67.93 | -42.81 | PBIDT | 808.17 | 539.52 | 49.79 | 2,826.95 | 1,722.57 | 64.11 | Interest | 62.57 | 46.96 | 33.24 | 186.12 | 184.70 | 0.77 | PBDT | 745.60 | 492.56 | 51.37 | 2,640.83 | 1,537.87 | 71.72 | Depreciation | 172.2 | 131.32 | 31.13 | 617.19 | 531.26 | 16.17 | PBT | 573.40 | 361.24 | 58.73 | 2023.64 | 1006.61 | 101.04 | Share of Profit/(Loss) from Associates | -0.03 | 0 | - | -0.01 | 0 | - | PBT before EO | 573.37 | 361.24 | 58.72 | 2023.63 | 1006.61 | 101.03 | EO Income | 0 | 0 | - | 0 | 0 | - | PBT after EO | 573.37 | 361.24 | 58.72 | 2023.63 | 1006.61 | 101.03 | Taxation | 134.8 | 90.14 | 49.55 | 473.52 | 260.56 | 81.73 | PAT | 438.57 | 271.1 | 61.77 | 1550.11 | 746.05 | 107.78 | Minority Interest (MI) | 9.5 | 16.89 | -43.75 | 52.68 | 52 | 1.31 | Net profit | 429.07 | 254.21 | 68.79 | 1497.43 | 694.05 | 115.75 | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | Net profit after discontinued operations | 429.07 | 254.21 | 68.79 | 1497.43 | 694.05 | 115.75 | EPS (Rs)* | 6.61 | 3.91 | 68.79 | 23.05 | 10.69 | 115.75 | | * EPS is on current equity of Rs 649.56 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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