Varun Beverages Q3 Results Review - Strong 14% Volume Growth In A Difficult CY23: Systematix

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..Systematix Report.Varun Beverages Ltd.'s delivered another strong quarter beating consensus estimates with volume/revenue/Ebitda/profit after tax growth of 18%/21%/36%/77% respectively. Both India and international markets witnessed strong distribution-led traction, superior mix driving realizations and lower input costs driving better profitability.A 14% volume growth in year where volumes were impacted by unseasonal rains in the peak season raises hopes of an even stronger growth performance in CY24, especially as new capacities are getting commissioned for the upcoming season with ~45% increase. Juices and value-added dairy are also set for strong growth in CY24 with the capacities being tripled, with one plant in West and one in East India getting completed.There is enough room for further distribution expansion to drive growth in India, especially in energy drinks while the international addressable market is getting expanded with the South African acquisition and upcoming entry into the congo market. While the management has retained its 21-22% margin guidance, we see a high probability of the company outperforming that given the current margin levels of 23% and further premiumization potential.We do not see the increase in debt levels due to aggressive capacity expansion and the South African acquisition as a concern as the rising scale of operations should help manage that..Click on the attachment to read the full report:.Sun Pharma Q3 Results Review - Inline Operational Performance: Nirmal Bang.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 14% Volume Growth In A Difficult CY23: Systematix

New capacities to drive higher growth in CY24.

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