Varun Beverages jumped 6.34% to Rs 1,234.65 after the company's consolidated net profit zoomed 150.15% to Rs 81.52 crore in Q4 CY22 from Rs 32.59 crore reported in Q4 CY21.
Revenue from operations (net of excise / GST) stood at Rs 2,214.23 crore in Q4 CY22, registering a growth of 27.7% as against Rs 1,734.34 crore posted in the corresponding quarter previous year.
On quarter on quarter basis, the company's net profit slumped 79.39% and revenue tumbled 30.19% in Q4 CY22.
Net realization increased by 6% to Rs 164 primarily due to price hike in select SKUs, rationalized discounts/incentives, and improvement in mix of smaller SKUs (250ml) especially the energy drink - Sting, which has a higher net realization.
Total sales volumes grew by 17.8% in Q4 CY22 to 132 million cases as compared with 112 million cases reported in Q4 CY21.
EBITDA in Q4 CY22 stood at Rs 307.5 crore, recording a growth of 48.1% on year on year basis. EBITDA margins improved by 192 bps to 13.9% in Q4 CY22.
On full year basis, Varun Beverages' net profit surged 107.78% to Rs 1,550.11 crore on 49.30% jump in revenue from operations (net of excise / GST) to Rs 13,173.1 crore in CY22 over CY21. The growth in the profit was mainly driven by high growth in revenue from operations, improvement in margins, and transition to a lower tax rate in India. Sales volume grew by 40.9% in CY22 to 802 million cases supported by strong performance in India as well as International territories.
EBITDA increased by 68.5% to Rs 27,88.1 crore in CY22 from Rs 1,654.6 crore posted in CY21. EBITDA margin improved by 241 bps to 21.2%, led by higher realizations and operating leverage from increased sales volume. Gross margins reduced by 180 bps to 52.5% in CY22 primarily due to increase in preform prices by over 30% during the year.
Net debt rose to Rs 34,09.6 crore as on 31 December 2022 as against Rs 30,05.3 crore as on 31 December 2021. Net debt increased on account of Greenfield expansion in Rajasthan and Madhya Pradesh and brownfield expansion at 6 plants for CY 2023 in India. Debt : Equity ratio stood at 0.65x and Debt : EBITDA ratio stood at 1.23x as on 31 December 2022.
Ravi Jaipuria, Chairman, Varun Beverages said, We are pleased to close the year on a strong note with exceptional operational and financial performance reported throughout CY2022. The strong recovery in demand post the pandemic and our continued efforts towards expanding the distribution network across markets resulted in a 41% growth in consolidated sales volume. Additionally, we achieved growth in realization per unit through strategic measures such as selective price hikes, rationalized discounts and incentives, and improved product mix. This allowed us to deliver revenue growth of 49% and PAT growth of 108% YoY on a consolidated basis in CY 2022. Our recent launches in the value-added Dairy segment have also been well-received by consumers, and we are confident that these products will continue to drive growth in the future.
As a leading beverage company serving over 1.3 billion customers globally through our extensive network of over 3 million retail outlets, we take our responsibility to the environment seriously. We are committed to sustainable & responsible operations and have taken a proactive stance in promoting sustainability in the beverage industry. Our aim is to minimize our impact on the environment and foster sustainable practices throughout our supply chain.
Looking forward, we aim to further strengthen our position as a key player in the beverage industry by leveraging our strong presence in fast-growing markets, solid infrastructure, and well-established distribution network. Our focus remains on delivering high-quality products, further expanding our reach in key markets, and capitalizing on new opportunities to create sustainable long-term value for all stakeholders.
Meanwhile, the company's board has recommended a final dividend of Re 1 per equity share for the financial year ended 31 December 2022
Varun Beverages is a key player in beverage industry and one of the largest franchisees of PepsiCo in the world (outside USA). The company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. As on date, VBL has been granted franchises for various PepsiCo products across 27 States and 7 Union Territories in India. VBL has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe.
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