Varun Beverages Q3 Results Review - Strong Volume-Led Growth Continues; Maintain Buy : Axis Securities

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.Varun Beverages Ltd.’s robust all-around performance was led by volume growth of 18% YoY (~14% in CY23), driven by strong double-digit volume growth in the Indian and international markets. The realization in CY23 grew by 7% at Rs 176/case, led by an improved product mix of smaller stock keeping units. (205 ml-smaller stock keeping units have higher realization), increased salience of the sting portfolio in the domestic market, and improved realisation in international markets. Gross and Ebitda margin expanded by 34 basis points/179 basis point YoY to 56.6%/15.7% on account of lower polyethylene terephthalate prices, higher realization, and operational efficiencies. It continues to maintain its growth momentum guidance for CY24, supported by scaling up the dairy/juices portfolio, increasing distribution reach, robust on-ground execution, expanding manufacturing capacities, and ramping up Africa (BevCo) business post completion of final approvals by Feb-24.We believe Varun Beverages is expected to continue its strong growth momentum, which will be led by Normalised operations along with market share gains in newly-acquired territories (post Covid-19 disruptions), The management’s continued focus on the efficient go-to-market execution in acquired and underpenetrated territories, Expansion in its distribution reach mainly in rural with total outlets at 3.5 million outlets in CY23, adding 4-5 lakhs outlets per year, Focus on expanding high-margin Sting energy drink across outlets coupled with increased focus on expansion of Value-Added Dairy, sports drink (Gatorade), and Juice segment, and,Robust growth in the International geographies, led by focused execution and scaling up BevCo in CY24..Click on the attachment to read the full report:.Varun Beverages Q4 Results Review - Strong Volume Growth Drives Sales: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Varun Beverages Q3 Results Review - Strong Volume-Led Growth Continues; Maintain Buy : Axis Securities

Robust growth in the International geographies, led by focused execution and scaling up BevCo in CY24

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Varun Beverages Q3 Results Review - Strong Volume-Led Growth Continues; Maintain Buy : Axis Securities

Robust growth in the International geographies, led by focused execution and scaling up BevCo in CY24

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