Q3 2024 Varun Beverages Ltd Earnings Call Transcript
Key Points
- Varun Beverages Ltd (NSE:VBL) reported a strong consolidated revenue growth of 24.1% for the quarter, driven by an expanded distribution network and favorable demand trends.
- The company achieved a 30.5% growth in EBITDA, with an improvement of 117 basis points in EBITDA margins, reflecting enhanced operational efficiencies.
- Successful commissioning of a greenfield facility in the Democratic Republic of Congo, which reached 100% utilization, indicates strong demand and operational capability.
- The Board approved a proposal to raise funds up to INR7,500 crores, which will support growth plans, including expansion into new territories and potential strategic acquisitions.
- International markets, particularly in Africa, are positioned to drive further growth, with significant progress on new facilities across India and Africa.
- The Indian market's volume growth was impacted by heavy rains, resulting in a modest 5.7% growth compared to international markets.
- Finance costs increased by 89.7% due to new CapEx and higher borrowing costs, impacting overall profitability.
- Depreciation rose by 50.2% primarily due to the acquisition of BevCo and new production facilities, affecting net income.
- Gross margins in India dipped by 120 basis points, attributed to raw material costs and changes in revenue mix.
- The company faces competition from Campa Cola, which could impact market share and necessitate strategic pricing adjustments.
Ladies and gentlemen, good day, and welcome to the Varun Beverages Limited earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Anoop Poojari from CDR India. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone, and thank you for joining us on Varun Beverages Limited CY 2024 earnings conference call. We have with us Mr. Ravi Jaipuria, Chairman of the company; Mr. Varun Jaipuria, Executive Vice Chairman and Full-time Director; and Mr. Raj Gandhi, Group CFO and Whole-Time Director of the company. We will initiate the call with opening remarks from the management, following which we'll have the forum open for a question-and-answer session.
Before we begin, I would like to point out that some statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the results presentation shared with you earlier.
I would now request Mr.
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