{"id":166995,"date":"2025-02-19T09:59:41","date_gmt":"2025-02-19T14:59:41","guid":{"rendered":"https:\/\/44.250.171.167\/?p=166995"},"modified":"2025-02-19T09:59:41","modified_gmt":"2025-02-19T14:59:41","slug":"vbl-q4-2024-2025-call-highlights-new-plants-snack-expansion-and-energy-drink-push","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/vbl-q4-2024-2025-call-highlights-new-plants-snack-expansion-and-energy-drink-push\/","title":{"rendered":"VBL Q4 2024-2025 Call Highlights: New Plants, Snack Expansion and Energy Drink Push!"},"content":{"rendered":"<p>Varun Beverages Ltd., PepsiCo&#8217;s largest franchise bottler outside the US, in its Q4 earnings call discussed the company being confident of maintaining double-digit growth in India, with plans to expand from 4 million to 12 million outlets, while its current product mix consists of 59% CSD, 15% energy drinks, 8% juice, and 18% water. In South Africa, the company is transitioning from modern trade to general trade to improve margins, with this shift expected to take about a year alongside backward integration plans. The company is expanding capacity by 20-25% in 2025, targeting 90-95% utilization, while also growing its food business in African markets and launching Sting Gold to capitalize on India&#8217;s underpenetrated energy drinks market, which is currently 5-6% vs. 15-20% in other developing countries.<\/p>\n<p>Varun Beverages reported Q4 results showing consolidated net profit growth of 36% year-over-year, though falling short of analysts&#8217; estimates. Revenue increased by 38%, while EBITDA grew 38.7% with margins remaining flat at 15.7% due to rising raw material costs and taxes. The company demonstrated strong volume growth with consolidated volumes up 23.2%, driven by African expansion and India volumes increasing 11.4%. The company&#8217;s strategic initiatives include acquisitions in Tanzania and Ghana, new operations in the Democratic Republic of Congo, entry into the snacks business across multiple African markets, and becoming debt-free following a INR7,500 crore QIP.<\/p>\n<p>Continue Reading: Discover the Vital Insights from Varun Beverages Ltd.&#8217;s Earnings Call!<\/p>\n<p><strong>Financial\/Operational Metrics:<\/strong><\/p>\n<ul>\n<li><strong>Total Revenue:<\/strong> INR3,689 crore, up 38% YoY.<\/li>\n<li><strong>Net Profit<\/strong>: INR196 crore, up 36% YoY.<\/li>\n<li><strong>Basic EPS<\/strong>: INR0.55, up 34% YoY.<\/li>\n<li><strong>Consolidated Sales Volume<\/strong>: 1,124.4 million cases, up 23.2% YoY.<\/li>\n<\/ul>\n<p><strong>Outlook:<\/strong><\/p>\n<ul>\n<li><strong>Investments: <\/strong>Increased investment in sustainability with higher renewable energy usage and rPET recycling initiatives.<\/li>\n<li><strong>Expansion: <\/strong>Continued Growth in India &amp; International Markets through deepening market penetration and expanding distribution &amp; manufacturing capacity.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>\u00a0<\/strong><strong>Analyst Crossfire:<\/strong><\/p>\n<ul>\n<li><strong>India Business Growth &amp; Seasonality, Competition from Campa &amp; Market Expansion (Vivek Maheshwari &#8211; Jefferies)? <\/strong>Despite mid-single-digit growth in H2, double-digit annual growth remains on track, as short-term fluctuations are driven by seasonality. Regional brands hold a 20% market share, but VBL\u2019s expansion into 400,000-500,000 new outlets annually supports long-term growth. Market size is far from saturation, and more players will expand the category rather than threaten VBL<strong> (Ravi Jaipuria &#8211; Chairman).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Capacity Expansion in 2025 &amp; South Africa Growth Ambitions (Aditya Soman \u2013 CLSA, Percy Panthaki &#8211; IIFL)? <\/strong>Capacity will increase by another 20-25% in 2025, following a 45% expansion over the last two years, with new plants operational by March. Targeting higher than 30% growth in South Africa over the next 3-5 years, with aggressive expansion in general trade &amp; backward integration<strong> (Ravi Jaipuria &#8211; Chairman).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Snack Foods Expansion in 2025 (Devanshu Bansal &#8211; Emkay Global)? <\/strong>Morocco; Expected to reach $25-30 million revenue in 2025. Zimbabwe &amp; Zambia; New plants operational in Q3 2025, currently relying on imports from South Africa. Jeera Drink Launch; VBL is working with PepsiCo to introduce a Jeera-based beverage, targeted for launch in the upcoming season<strong> (Ravi Jaipuria &#8211; Chairman)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Margin Sustainability &amp; International Growth, Competitive Landscape &amp; Market Growth (Latika Chopra &#8211; JP Morgan)? <\/strong>Domestic 21%+ margin is sustainable, while international margins will improve through backward integration and market expansion. New entrants haven&#8217;t impacted VBL\u2019s growth. The market is underpenetrated, and more players will expand rather than shrink the category<strong> (Ravi Jaipuria &#8211; Chairman)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Pricing Decisions Amid Competition &amp; New Product Launches (Amit Purohit &#8211; Elara Capital)? <\/strong>VBL makes pricing decisions in consultation with PepsiCo but sees no need for price cuts, as lower-priced brands will help grow the overall market. VBL will launch Sting Gold (new energy drink flavor) and other products before the season<strong> (Ravi Jaipuria &#8211; Chairman)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Recycled PET (rPET) Project Update &amp; Capacity Utilization for Peak Season (Nitesh Dutt &#8211; Burman Capital, Devanshu Bansal &#8211; Emkay)? <\/strong>The Indorama JV for rPET is on track, with production starting in early Q3 2025, covering nearly 100% of VBL\u2019s PET requirements. VBL has sufficient capacity for expected summer demand, targeting 90-95% utilization if demand peaks<strong> (Ravi Jaipuria &#8211; Chairman)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Varun Beverages Ltd., PepsiCo&#8217;s largest franchise bottler outside the US, in its Q4 earnings call discussed the company being confident of maintaining double-digit growth in India, with plans to expand from 4 million to 12 million outlets, while its current product mix consists of 59% CSD, 15% energy drinks, 8% juice, and 18% water. In [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":162998,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,6351,392],"tags":[14126,10169,11886],"class_list":["post-166995","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-consumer-stocks","category-earnings","tag-consumer-food","tag-earnings","tag-soft-drinks"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":168091,"url":"https:\/\/alphastreet.com\/india\/hindunilvr-q4-call-highlights-quick-commerce-growth-ozivas-impact-and-market-momentum\/","url_meta":{"origin":166995,"position":0},"title":"HINDUNILVR Q4 Call Highlights: Quick Commerce Growth, OZiva&#8217;s Impact and Market Momentum!","author":"Praveen","date":"April 25, 2025","format":false,"excerpt":"Hindustan Unilever Ltd, an Indian fast-moving consumer goods company, in its Q4 earnings call highlighted a growth-first strategy, adjusting EBITDA margin guidance to 22\u201323% for the next 2-3 quarters to fund increased investments across P&L lines, particularly in beauty and wellbeing, future core, and market maker segments, amid improving macro\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":168200,"url":"https:\/\/alphastreet.com\/india\/vbl-q4-call-highlights-margin-gains-volume-growth-and-international-expansion\/","url_meta":{"origin":166995,"position":1},"title":"VBL Q4 Call Highlights: Margin Gains, Volume Growth, and International Expansion!","author":"Praveen","date":"May 1, 2025","format":false,"excerpt":"Varun Beverages Ltd, PepsiCo\u2019s largest bottling partner in India, in its Q4 earnings call highlighting strong double-digit volume growth in energy drinks (Sting) and hydration products (Nimbus), with near 100% growth, while new launches like Sting Gold and lower-priced Gatorade await market feedback. India margins improved to 25% (above 21%\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":128769,"url":"https:\/\/alphastreet.com\/india\/adani-wilmar-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":166995,"position":2},"title":"Adani Wilmar Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 3, 2022","format":false,"excerpt":"https:\/\/youtu.be\/6S2tW3igJ_s Key highlights from Adani Wilmar Ltd (AWL) Q4 FY22 Earnings Concall Management Update: AWL said that for FY22-23, the growth is expected to be little higher of 3% for the overall consumption growth of edible oil. Additionally, AWL also expects the per capita consumption going up. Q&A Highlights: Abneesh\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":171956,"url":"https:\/\/alphastreet.com\/india\/varun-beverages-q2-fy26-earnings-results\/","url_meta":{"origin":166995,"position":3},"title":"Varun Beverages Q2 FY26 Earnings Results","author":"Chirag Gupta","date":"October 29, 2025","format":false,"excerpt":"Varun Beverages Ltd has been associated with PepsiCo since the 1990s and is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world. The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks and packaged water sold under trademarks\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Varun Beverages Ltd Q2 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Varun-Beverages-Ltd-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Varun-Beverages-Ltd-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Varun-Beverages-Ltd-Q2-FY26-Earnings-Results.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Varun-Beverages-Ltd-Q2-FY26-Earnings-Results.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Varun-Beverages-Ltd-Q2-FY26-Earnings-Results.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/Varun-Beverages-Ltd-Q2-FY26-Earnings-Results.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":65860,"url":"https:\/\/alphastreet.com\/india\/key-highlights-from-infosys-infy-q1-2021-earnings-results\/","url_meta":{"origin":166995,"position":4},"title":"Key highlights from Infosys (INFY) Q1 2021 earnings results","author":"Staff Correspondent","date":"July 15, 2020","format":false,"excerpt":"Infosys (NYSE: INFY) reported earnings results for the first quarter of 2021 today. Revenues declined 0.3% to $3.12 billion. Net profit after minority interest was $558 million while diluted EPS was $0.13. The company expects revenue growth in the range of 0-2% in constant currency for fiscal year 2021 while\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Infosys reports Q1 2021 earnings results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/07\/Infosys-Q1-2021-Earnings-Infographic.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/07\/Infosys-Q1-2021-Earnings-Infographic.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/07\/Infosys-Q1-2021-Earnings-Infographic.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/07\/Infosys-Q1-2021-Earnings-Infographic.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/07\/Infosys-Q1-2021-Earnings-Infographic.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":147286,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-indian-energy-exchange-limited-for-q4-fy23\/","url_meta":{"origin":166995,"position":5},"title":"Earnings Summary Of Indian Energy Exchange Limited For Q4 FY23","author":"Hardik Bhandare","date":"May 25, 2023","format":false,"excerpt":"India's leading energy exchange, Indian Energy Exchange Limited (IEX), offers a national automated trading platform for the physical delivery of electricity, renewable energy, and certificates. 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