Varun Beverages Q1 Review - Sustained Volume Growth: ICICI Securities
Bottles of Pepsi Max travel along the production line.  (Photographer Chris Ratcliffe/Bloomberg).

Varun Beverages Q1 Review - Sustained Volume Growth: ICICI Securities

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

Organic volume growth of 25% year-on-year (two-year compound annual growth rate of 12%) in Q1 CY21 looks impressive.

Recovery in economy, normalisation of consumption and sustained higher in-home consumption were key reasons for strong volumes in Q1 CY21.

Three pointers:

  1. We believe when the business activity returns to normalcy, some consumers will still continue with higher in-home consumption. This opens up new window of beverage consumption.

  2. The company has initiated multiple cost saving programmes and some of the savings are likely to be structural in nature.

  3. Rural is still outperforming the urban and is likely to continue to do so as the impact of lockdown is still minimal in rural.

Click on the attachment to read the full report:

ICICI Securities Varun Beverages Q1CY21 Results Update.pdf

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