AI-generated · cited to primary sources · not investment advice
Varun Beverages (540180) Feb 2026 Filing Analysis
Does management do what it says?
Consolidated EBITDA margins for 9M CY2025 stood at 25.2%, significantly above the 21% long-term target. (2 exceeded across 2 tracked commitments)
“Further, we have always guided of consolidated margins at 21% and above, but we are still doing much better than that. And we believe going forward also, when the season starts, the margins should be better with stronger growth coming this year.”
The company confirmed the commencement of commercial production for PepsiCo snacks (Cheetos) at its Zimbabwe facility during the year. (2 met across 2 tracked commitments)
“The acquisition is expected to be completed on or before 30 June 2026.”
Management confirmed that Zimbabwe has recovered from the impact of the sugar tax and has returned to double-digit growth as of September. (3 met, 1 in progress, 1 exceeded across 5 tracked commitments)
“Well, we have always said that double-digit growth in India is not impossible, and we would continue to stick to that. We see no reason why we should not achieve it this year.”
Management expects the snacks business in international markets to reach approximately $100 million in revenue. — target: $100 million
“We think this is going to go close to a $100 million business, and this is not an unforeseen number that can happen with two of these three territories.”
The company will launch the Nimbooz Jeera range and more flavors/price points in the Nimbooz category during the upcoming season. — target: New Product Launch
“About March, we will be launching our Nimbooz Jeera range, this is the second product which we are launching in a big way. Nimbooz which is growing very fast for us and is doing phenomenally well, we are planning to launch more flavors and price points in that.”
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