Varun Beverages Management Guidance Tracker

The greenfield plant in DRC is expected to start commercial production in the next quarter (Q2 CY24).

Varun Beverages Morocco will start manufacturing, marketing, and packaging Cheetos in Morocco by May 2025.

Current DRC capacity of ~35M cases will be more than doubled with expansion at existing plant and a new facility, expected to commission in early 2025 and mid-2025.

Snack plants in Zimbabwe, Zambia, and Morocco are expected to start commercial production in 2025, with potential revenue of ~$100M at full capacity.

Management is actively looking for acquisitions and expansion in international markets, with capex focused on South Africa, DRC, Morocco, and Zimbabwe.

The snacks plant in Zimbabwe is expected to commence production in October-November 2025, following the Morocco plant which started in June 2025.

Exclusive distribution agreement with Carlsberg for Southern Africa; initial test marketing via imports.

The acquisition of Twizza in South Africa is expected to be margin accretive for BevCo, with owned assets and solar power reducing costs.

The company plans to add approximately 500,000 new outlets this year, expanding distribution reach from a base of ~4 million.

Management plans to add approximately half a million new outlets this year, up from the current base of ~4 million.

Management expects to amortize the majority of incremental debt taken for BevCo acquisition and CapEx in the next couple of months.

First rPET plant under construction will produce enough preforms to meet government mandate of 30% rPET usage.

Launched in four cities at a medium price point of INR 60, targeting the energy drink segment.

Despite gross margin expansion, management maintains the same long-term margin guidance, citing one-off factors.

Margins in South Africa will improve as backward integration and general trade expansion take effect over the next 1-2 years.

Management maintains that India EBITDA margins will be at least 21%, with potential improvement from backward integration and new plants.

Management aims to maintain South Africa EBITDA margins at around 14% for the full year, up from 10.8% at acquisition.

Management aims to maintain India EBITDA margins close to the CY2025 level of ~26%, though formal guidance remains 22-23%.

Management expects continued double-digit volume growth in India and consolidated for the second half of the calendar year.

Management expects to sustain double-digit volume growth in India, supported by outlet expansion and market penetration.

Management expects to continue double-digit volume growth for the full year, supported by capacity expansion and market penetration.

Current capacity utilization is around 70%, giving enough room for growth without significant new capacity additions in India for the next two years.

Management expects double-digit growth in India as weather normalizes, citing October double-digit recovery.

Management expects international revenue growth to return to 13-15% from next quarter, driven by recovery in Zimbabwe and DRC.

Management expects double-digit volume growth in India for CY2026, assuming normal weather, after a weather-impacted CY2025.

Management expects the Indian market to continue growing at double digits for the next 5-10 years, supported by favorable demographics and rising consumption.

Management expressed confidence in sustained double-digit volume growth in India over the next 5-10 years, driven by favorable demographics and market expansion.

Net capitalization CapEx for 2024 remains at ₹3,600 crore, primarily for greenfield and brownfield expansions.

Planned capitalization of ₹2,500-2,600 crore for the 2025 season, mainly for greenfield facilities in India and snack food manufacturing in Africa.

Funds will be used to reduce net debt (~INR 6,000 crore), support expansion, and create a war chest for strategic acquisitions.

Production capacity will increase by about 25% in 2025, with new plants commissioned before the season.

Total capex for the year is guided at INR 3,100 crore, with INR 900 crore yet to be spent.

Management indicated that major capex in India will be minimal for the next 1-2 years, with only INR 600-700 crore planned, primarily for maintenance and solar energy.

No major CapEx planned in India; international CapEx limited to brownfield in South Africa and a greenfield brewery for Carlsberg in Africa.

Capital expenditure for the year is expected to be low, under INR 500-600 crore, as existing capacity is sufficient.

Management guided capex of less than ₹500-600 crore for the year, as existing capacity is sufficient to support 50% volume growth.

Management expects snack food business in Zimbabwe, Zambia, and Morocco to generate close to $100 million in revenue within the next couple of years.

Snack business in Morocco expected to generate $25-30 million in CY25, with plant commissioning in June.