ICICI Securities: Varun Beverages’ Faster-Than-Expected Revenue Recovery
Bottles of Pepsi Max travel along the production line at the Britvic Plc factory and warehouse in Leeds, U.K. (Photographer Chris Ratcliffe/Bloomberg)

ICICI Securities: Varun Beverages’ Faster-Than-Expected Revenue Recovery

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Varun Beverages Ltd.’s sales volumes in Q3 CY20 are around 96% of volumes in Q3 CY19 and there was double digit volume growth in September 2020 indicating faster-than-expected recovery in revenues.

Two positives:

  1. There is increase in in-home consumption of carbonated soft drinks. We believe when the business activity returns to normalcy, some consumers will continue with in-home consumption. This opens up new window of beverage consumption.

  2. The company has initiated multiple cost saving programs and some of the savings will be structural in nature. It will boost margins/return ratios when the consumption returns to normalcy.

Click on the attachment to read the full report:

ICICI Securities Varun Beverages Q3CY20 Results Update.pdf


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