Varun Beverages (VBL) Q4 2024 earnings summary

Executive summary

• Achieved strong growth in 2024, expanding into South Africa and neighboring territories, securing distribution rights for Namibia, Botswana, Mozambique, and Madagascar, and commencing greenfield operations in DRC.

• Consolidated sales volumes rose 23.2% year-over-year, with India volumes up 11.4% and international organic growth at 6.3%.

• Revenue increased 24.7%, EBITDA grew 30.5%, and PAT rose 25.3% for the year.

• Raised INR 75,000 million via QIP, becoming net debt free and strengthening the balance sheet.

• Board recommended a final dividend of INR 0.50 per equity share, subject to approval.

Financial highlights

• FY2024 revenue: INR 204,813.28 million, up from INR 163,210.63 million in FY2023; Q4 revenue: INR 38,176.15 million, up from INR 27,309.82 million in Q4 2023.

• EBITDA for FY2024: INR 47,111 million, up 30.5%; EBITDA margin improved to 23.5%.

• PAT for FY2024: INR 26,343 million, up 25.3%; Q4 PAT: INR 1,956 million, up 36.1%.

• Gross margin expanded by 165 bps to 55.5% in FY2024.

• Net realization per case increased 1.3% to INR 177.9.

Outlook and guidance

• Focus on double-digit annual growth in India and international markets, with continued capacity expansion, deeper market penetration, and investments in technology and sustainability.

• Projected 2025 CapEx at INR 31,000 million, with major investments in new greenfield facilities and snack manufacturing.

• Confident in sustaining India margins at 21% and improving international margins through backward integration and general trade expansion.