ECONOMY

Varun Beverages Q1 Review – Strong Volume Growth On Demand Recovery: Motilal Oswal

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Varun Beverages Ltd. reported a strong operating performance on the back of higher volume growth across the carbonated soft drinks and non-carbonated beverages segments.

Volumes increased 32% year-on-year to 151 million unit-cases.

This was primarily led by an increase in out-of-home consumption, coupled with strong demand for newly launched products in the NCB segment.

Q1 CY21 revenue/Ebitda numbers were marginally better than our estimates.

However, we decrease our revenue/earnings estimate for CY21 by 4%/16%, primarily due to the partial lockdowns imposed across several states – which is expected to affect volumes during the peak season over April–June 2021 and delay expansion plans in the south and west regions.

Click on the attachment to read the full report:

Motilal Oswal Varun Beverages Q1CY21 Result Update.pdf

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