Q1CY22 Result Update - Varun Beverages - ICICI Direct

Varun Beverages reported robust volume growth of 18.7%.

- Sales were up 26.2% YoY led by strong recovery in volumes

- EBITDA was at Rs. 531 crore, up 39.1% YoY, with margins at 18.8%

- Consequent PAT grew 98.2% to Rs. 271.1 crore

Key triggers for future price performance

- With normalisation of mobility, strong summer season after acquisition of South & West territories is likely to drive robust volume growth

- The company has launched several new brands in last two years i.e. String, 'Mountain Dew ICE', Milk based beverages. New products are contributing ~10% to volumes and are likely to aid revenues, going forward

- Given the capex requirement equal to depreciation, VBL would be able to completely de-leverage its balance sheet in the next three to four years with strong free cash flow. The reduction in interest cost to boost profitability

For details, click on the link below: Link to the report

Shares of Varun Beverages Limited was last trading in BSE at Rs. 1084.35 as compared to the previous close of Rs. 1059.05. The total number of shares traded during the day was 124901 in over 6970 trades.

The stock hit an intraday high of Rs. 1152.75 and intraday low of 1078.00. The net turnover during the day was Rs. 138808433.00.

Source : Equity Bulls

Keywords

VarunBeverages INE200M01013 VBL Q1CY22 ResultUpdate ICICIDirect