Q2 2025 Varun Beverages Ltd Earnings Call Transcript
Key Points
- Varun Beverages Ltd (NSE:VBL) maintained its EBITDA margin despite a 3% decline in consolidated sales volume, showcasing operational efficiency.
- The company reported a 15.1% growth in international market volumes, with South Africa leading at 16.1% growth.
- Varun Beverages Ltd (NSE:VBL) commenced commercial production of PepsiCo snacks product, Cheetos, in Morocco, diversifying its revenue streams.
- The company has strengthened its balance sheet in Zambia, DRC, and South Africa through equity infusion, raising its stake in Zambia from 90% to 95%.
- Varun Beverages Ltd (NSE:VBL) declared a second interim dividend of 25% of face value, reflecting strong shareholder returns.
- Consolidated sales volume declined by 3% due to unseasonal rains impacting the peak summer months in India.
- Revenue from operations in Q2 2025 decreased by 2.5% year-on-year, primarily due to a 7.1% decline in India volumes.
- The company faced challenges in the Indian market with a 7% volume decline and a 9% value decline, attributed to unseasonal rains.
- Capacity utilization is currently at 70%, indicating underutilization of newly commissioned plants.
- The company anticipates limited major CapEx in India for the next two years, potentially slowing domestic growth opportunities.
Ladies and gentlemen, good day, and welcome to Varun Beverages Limited's 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 Q2 CY 2024 (sic - 2025) earnings conference call. We have with us Mr. Ravi Jaipuria, Chairman of the company; Mr. Varun Jaipuria, Executive Vice Chairman and Whole-Time Director; and Mr. Raj Gandhi, President 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, maybe forward-looking in nature and a disclaimer to this effect has been included in the results presentation shared with you earlier. I will now the request Mr. Ravi Jaipuria to
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