Varun Beverages Ltd.
Q1CY23 Quarterly Result Announced for Varun Beverages Ltd.
Varun Beverages announced Q1CY23 results:
- Revenue from operations (net of excise / GST) grew by 37.7% YoY to Rs 38,929.8 million
- Net realization increased by 10.4% to Rs 173.7 per case primarily due to a price increase, taken towards the end of the corresponding quarter last year.
- Total sales volumes grew by 24.7% in Q1CY23 to 224.1 million cases compared to 179.7 million cases in Q1CY22
- EBITDA increased by 50.3% to Rs 7,980.4 million from Rs 5,309.9 million
- Gross margins improved by 89 bps to 52.4% from 51.5% in Q1CY23
- EBITDA margins improved by 172 bps to 20.5% in Q1CY23 driven by operational efficiencies on the back of strong revenue growth
- PAT increased by 61.8% to Rs 4,385.7 million from Rs 2,710.9 million in Q1CY22 driven by high growth in revenue from operations, improvement in margins, and transition to a lower tax rate in India
- Depreciation increased by 31% and Finance cost increased by 33% in Q1CY23 on account of the capitalization of assets and setting-up of new production facilities.
Commenting on the performance for Q1CY23 Ravi Jaipuria, Chairman, Varun Beverages 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.”
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