Varun Beverages

** Varun Beverages VARB.NS shares rise 1.27% to 538.30 rupees

** Partners with Japan's Asahi Group 2502.T to manufacture, distribute and sell CALPIS dairy-based beverage brand in India

** CLSA ("high-conviction outperform", TP: 654 rupees) says VARB's manufacturing and distribution network should allow it to scale third-party brands efficiently

** Axis Capital ("add", TP: 585 rupees) says partnership could trigger potential re-rating, though near-term revenue contribution is likely to be modest

** Goldman Sachs ("buy") says alliance could open opportunities in adjacent categories and geographies and tap rising demand for healthier drinks

** Average rating by 25 analysts on stock is "Buy", median TP 596.50 rupees - LSEG-compiled data

** YTD stock up about 9.5%

(Reporting by Surbhi Misra in Bengaluru)

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June 18 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES - ASAHI GROUP ENTERS ALLIANCE WITH VARUN BEVERAGES FOR CALPIS BRAND IN INDIA

Source text: ID:nBSE9frPSq

Further company coverage: VARB.NS

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** Shares of Varun Beverages VARB.NS rise 2.2% to 531.20 rupees

** Pepsi India bottler extends its exclusive bottling deal with PepsiCo PEP.O for 10 years

** VARB, one of PepsiCo's largest bottlers outside the U.S., says new agreement also removes restriction from operating solely as a special purpose vehicle for PepsiCo

** Avg rating of 25 analysts on VARB at "buy"; median PT is 596.50 rupees - LSEG-compiled data

** YTD, stock up 8.4%

(Reporting by Kashish Tandon in Bengaluru)

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May 21 (Reuters) - India's Varun Beverages VARB.NS said on Thursday it has extended its exclusive bottling agreement with PepsiCo PEP.O for India by 10 years.

• Varun Beverages said the exclusive bottling appointment and trademark license agreement has been extended until April 30, 2049, from April 30, 2039.

• The company, one of PepsiCo's largest bottling partners outside the U.S., said the earlier agreement restricted it to functioning solely as a special purpose vehicle (SPV) for PepsiCo’s business. This restriction has now been removed in the revised agreement.

• The earlier agreement restricted Varun Beverages "from carrying out any activity other than to act as an SPV for PepsiCo business, now this requirement is deleted in the revised EBA," the company said.

• It did not disclose further details on the revised agreement.

• Last month, Varun Beverages reported a higher profit for the March quarter, supported by strong demand, with India sales volumes rising by over 14%.

(Reporting by Nishit Navin; Editing by Devika Syamnath)

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Corrects to say first-quarter, not fourth-quarter, in headline and bullet 2

** PepsiCo PEP.O bottler Varun Beverages' VARB.NS shares rise 2.2% to 501.25 rupees

** Co reports higher Q1 profit boosted by strong demand across domestic and international markets

** Net profit rises 20.1% to 8.72 billion rupees in the quarter ended March 31

** Revenue from operations rises 18.4% to 67.22 billion rupees, and expenses jump 9.8%

** "Demand remained encouraging during the quarter," chairman Ravi Jaipuria says

** Sales volumes in India rise 14.4%, while international markets post 21.4% growth

** Twenty-two of 25 brokerages rate the stock "buy" or higher; their median PT is 550 rupees

** VARB trades at a forward 12-months PE of 47.63 vs industry median of 47

** YTD, stock up 5.6% vs a 7.1% decline in the BSE Fast Moving Consumer Goods Index .BSESCGIP

(Reporting by Abhinav Parmar in Bengaluru)

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April 27 (Reuters) - Varun Beverages Ltd VARB.NS:

• MARCH-QUARTER CONSOL NET PROFIT 8.72 BILLION RUPEES

• MARCH-QUARTER CONSOL REVENUE FROM OPERATIONS 67.22 BILLION RUPEES

Source text: [ID:]

Further company coverage: VARB.NS

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April 15 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES - BUYS 29.99% EQUITY IN FPEL HR2 ENERGY PRIVATE LIMITED

• VARUN BEVERAGES - ACQUISITION MADE FOR 15.8 MILLION RUPEES

Source text: ID:nBSE2lQWw6

Further company coverage: VARB.NS

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March 17 (Reuters) - Varun Beverages Ltd VARB.NS:

• ACQUISITION OF 100% EQUITY STAKE OF CRICKLEY DAIRY PROPRIETARY

• BEVCO WILL ACQUIRE 100% STAKE OF CRICKLEY FOR AN ENTERPRISE VALUE OF 1.31 BILLION RUPEES

Source text: ID:nBSEw1FnS

Further company coverage: VARB.NS

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Feb 3 (Reuters) - India's Varun Beverages VARB.NS reported a higher quarterly profit on Tuesday as higher sales volumes and lower borrowing costs supported margins, sending shares up 4.9% in afternoon trade.

The company, one of PepsiCo's PEP.O biggest bottling partners outside the United States, said net profit rose 36% to 2.52 billion rupees ($27.87 million) in the quarter ended December 31.

Consolidated sales volumes rose 10.2% in the reported quarter, helped by improved performance in India during the festive season and continued growth in international markets.

Revenue from operations rose 13.5% year-on-year to 43.35 billion rupees in the quarter. Sales volumes in India grew 10.5%, while international markets posted 10% growth, led by Africa.

The company said profit growth was also supported by lower finance costs and higher other income, including interest income on deposits and favourable currency movements in international markets.

Varun Beverages packages and distributes beverages under Pepsi and Tropicana labels, among others. It also sells beverages under its own brands such as "Jive" and "Cream Bell".

($1 = 90.4280 Indian rupees)

(Reporting by Surbhi Misra in Bengaluru; Editing by Nivedita Bhattacharjee)

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** Shares of Varun Beverages VARB.NS sink 9% over two sessions, their biggest such decline since late February

** Pespi India bottler's stock dips 3.7% on Friday; it fell 5.7% on Thursday after effective tax on sugary carbonated drinks was unchanged at 40%

** Still, Nomura said it does not see any impact for carbonated beverage companies

** 22 analysts covering VARB have a "buy" rating on avg; median PT is 595 rupees - data compiled by LSEG

** YTD, stock down 27%, the biggest loser on FMCG index .NIFTYFMCG

(Reporting by Urvi Dugar)

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Corrects headline and second bullet point to clarify taxes on fizzy drinks were maintained, not raised

** Pepsi India bottler Varun Beverages VARB.NS falls 2% to 494 rupees

** India maintained an effective tax rate of 40% on carbonated drinks

** Stock rated "buy" on avg; median PT is 595 rupees, per data compiled by LSEG

** YTD, VARB falls 22.2%

(Reporting by Aleef Jahan in Bengaluru)

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** India's consumer goods stocks climb 3.2%, the only major sub-index set to close higher this week

** Nifty FMCG .NIFTYFMCG index set for its best week in nearly four months

** Varun Beverages VARB.NS gains most, jumping 8.1% for the week

** Index heavyweights Hindustan Unilever HLL.NS and Britannia BRIT.NS climb 5.6% and 4.3%

** Q1 earnings for VARB and HLL topped estimates, fuelling hopes of a gradual demand recovery

** Dabur DABU.NS forecast higher full-year sales growth, rises 5.5% this week

** Top-weight ITC up 2% this week, due to report results after market close on Friday

** Ten stocks on index rated "buy" or higher, rest "hold" - data compiled by LSEG

** Nifty FMCG index pares YTD losses to 0.9%, but trails blue-chip Nifty 50's .NSEI 4.3% rise this year

(Reporting by Nandan Mandayam in Bengaluru)

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** Varun Beverages VARB.NS extends gains for second day post Q2 results on Tuesday; rises 2.9% to 526 rupees

** Pepsi India bottler's Q2 consol net profit rises 5% y/y, beating analysts' estimate

** Analysts say rise was on stronger margins, good performance in international markets

** Antique, which maintains "buy", sees growth in energy drinks and dairy products categories, as well as capacity expansion supporting volume and margin expansion

** Jefferies, which also has "buy", says competition isn’t a major concern for co; raises EPS estimates by 3% and hikes TP to 600 rupees from 560 rupees

** Stock rated "buy" on avg; median PT is 600 rupees - data compiled by LSEG

** YTD, VARB down 19.8%

($1 = 87.1900 Indian rupees)

(Reporting by Yagnoseni Das in Bengaluru)

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** Varun Beverages VARB.NS gains 4% to 506.5 rupees

** Pepsi India bottler's Q2 consol net profit rises to 13.17 bln rupees ($151.7 mln), ahead of analysts' estimate of 11.30 bln rupees, per data compiled by LSEG

** Co beats estimates as cost control measures helped offset damp bottled beverage sales exacerbated by early monsoon rains

** Stock set to rise most in a session since May 23

** More than 17.5 mln shares traded, 2.2x the 30-day moving avg

** Stock rated "buy" on avg; median PT is 600 rupees, per data compiled by LSEG

** YTD, VARB falls ~21%

($1 = 86.8110 Indian rupees)

(Reporting by Anuran Sadhu in Bengaluru)

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May 29 (Reuters) - Varun Beverages Ltd VARB.NS:

• STARTS COMMERCIAL PRODUCTION AT MEGHALAYA FACILITY

Source text: ID:nBSE2Dlxbz

Further company coverage: VARB.NS

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** Goldman Sachs initiates coverage on Varun Beverages VARB.NS with "buy" and PT of 600 rupees

** Pepsi's PEP.O India bottler has multiple drivers to outperform the country's fast-growing ready-to-drink beverages market, says Goldman Sachs

** VARB's execution has led to Pepsi's market share in India growing to 38% in 2024, from 28% in 2015, making India one of Pepsi's top-performing markets worldwide - GS

** Stock trading 0.3% lower on the day

** Brokerage expects VARB to continue to gain market share in fast-growing segments like energy drinks and hydration

** Adds, entry of Reliance Consumer's 'Campa Cola' brand indicates no "disruptive" impact to VARB

** Average rating of 22 analysts on VARB is "buy"; median PT is 615 rupees - data compiled by LSEG

(Reporting by Kashish Tandon in Bengaluru)

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May 1 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES LTD - STARTS COMMERCIAL PRODUCTION AT BUXAR FACILITY

Source text: ID:nBSE9BjK9G

Further company coverage: VARB.NS

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April 22 (Reuters) - Varun Beverages Ltd VARB.NS:

• STARTS COMMERCIAL PRODUCTION AT PRAYAGRAJ FACILITY

Source text: ID:nBSE61bZCB

Further company coverage: VARB.NS

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March 24 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES LTD - STARTS COMMERCIAL PRODUCTION AT KANGRA FACILITY

Source text: ID:nBSE7t5pmG

Further company coverage: VARB.NS

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** Pepsi's India bottler Varun Beverages VARB.NS rise as much as 5.7% to 536 rupees

** DAM Capital says market concerns over Campa Cola's aggressive re-entry, broader weak market sentiments "overstated"

** Adds VARB, with distribution network across more than 4 mln outlets in India, minimizes any material risk from Campa Cola's resurgence by Reliance Consumer Products

** Says VARB has more than 36 manufacturing facilities, 2,800+ distributors, 1.15 million visi-coolers nationwide, which will be capital-intensive and time-consuming for Campa Cola to match

** Projects ~19% CAGR sales growth, supported by ~16% volume growth; EPS expected to grow at ~26% CAGR over CY24-26

** Rates stock "buy", with TP of 670 rupees

(Reporting by Ashish Chandra in Bengaluru)

(([email protected] (+91 7982114624))

** India's Varun Beverages VARB.NS climbs 1.8% to 465.25 rupees

** Brokerage CLSA upgrades Pepsi's India bottler to "high-conviction outperform" from "outperform"

** Says investor concerns over competition with Reliance's Campa are "overdone"; profitablity and growth outlook for VARB remain strong

** CLSA cuts PT to 770 rupees from 802 rupees to factor heightened competition and potential price cuts by VARB

** Analysts covering the stock rate it "buy" on avg; median PT is 677.50 rupees - data compiled by LSEG

** Stock trims YTD losses to 27%

(Reporting by Kashish Tandon in Bengaluru)

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** Shares of Varun Beverages VARB.NS fall as much as 7.7% to 439.9 rupees to lowest level since mid-December 2023

** Stock top loser on Nifty FMCG index .NIFTYFMCG, which is down 0.95%

** The Pepsi bottler says it has extended date of planned acquisition of SBC Beverages Ghana from Ghana Bottling Co to March 31 from February 28

** The transaction is subject to regulatory approvals, including from PepsiCo PEP.O

** More than 13.2 mln shares change hands, 1.7x its 30-day avg

** 21 analysts covering the stock on avg have a "buy" rating; median PT is 677.5 rupees - LSEG data

** Stock has shed 25% so far this year, compared to a 8.6% drop in FMCG index

(Reporting by Ashna Teresa Britto in Bengaluru)

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** Shares of Varun Beverages VARB.NS fall as much as 3.8% to 532.7 rupees after reporting Q4 profit; last down 2.9%

** Pepsi India bottler reports profit below analysts' estimates as higher raw material costs offset growth in volumes

** Trading vols at 1.9x the 30-day avg of 4.76 million shares

** VARB rated "buy" on avg, median PT is 710 rupees - LSEG data

** Stock down about 16% so far this year

(Reporting by Manvi Pant in Bengaluru)

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Jan 2 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES LTD - INVESTS 4.13 BILLION RUPEES IN UNIT

Source text: ID:nBSE4Tg6zj

Further company coverage: VARB.NS

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Dec 16 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES - ACQUIRED 39.93% OF LUNARMECH

Source text: ID:nnAPN2GG4QD

Further company coverage: VARB.NS

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Dec 3 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES - NO COMMENTS ON REPORTS OF ONE ADDITIONAL RATE SLAB

Source text: [ID:]

Further company coverage: VARB.NS

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Nov 22 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES - TO DISINVEST ENTIRE 5.25% STAKE IN ISHARAYS ENERGY TWO FOR 19.20 MILLION RUPEES

Source text: ID:nBSE3mByMd

Further company coverage: VARB.NS

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By Praveen Paramasivam, Shivangi Acharya

CHENNAI/NEW DELHI, Nov 13 - India's city dwellers are cutting spending on everything from cookies to fast food as persistently high inflation squeezes middle class budgets, threatening the country's brisk economic growth.

Slowing urban spending over the past three to four months has not only hurt the earnings of largest consumer goods firms, it has raised questions about the structural nature of India's long-term economic success.

Since the end of the pandemic, India's economic growth has been driven in large part by urban consumption, however, that now seems to be changing.

"There is a top end – the people with money are spending like that is going out of style," Nestle India Chairman Suresh Narayanan said.

"There used to be a middle segment, which used to be the segment that most of us fast moving consumer goods (FMCG) firms used to operate in, which is the middle class of the country, that seems to be shrinking."

Nestle India, which makes Kit Kats and other well-known goods, reported its first quarterly revenue drop since the COVID-hit June quarter in 2020.

While there is no officially defined income bracket for Indian middle class households, they are broadly estimated to account for a third of India's 1.4 billion people.

They are considered a key demographic both economically and politically, with middle class frustration seen as a significant factor behind Prime Minister Narendra Modi's weaker election performance this year.

Asia's third-largest economy is expected to expand 7.2% in the financial year ending March 2025, the fastest among its major peers.

Belying those rosy projections, however, are signs of a sharp slowdown in the household sector.

Indian urban consumption hit a two-year low this month, according to an index published by Citibank that captures indicators such as airline bookings, fuel sales and wages.

"While some of the fall could be temporary, the key macro drivers remain unfavourable," Citi's chief India economist Samiran Chakraborty said.

Growth in inflation-adjusted wage costs for listed Indian firms - a proxy for earnings of urban Indians - has remained below 2% for all the three quarters of 2024, well below the 10-year average of 4.4%, data from Citi showed.

Chakraborty cites this as a key factor impacting urban consumption, along with declining savings and tighter rules for personal loans.

Headline inflation has averaged 5% over the past 12 months, but food inflation has held above 8% as weather shocks elevated prices of vegetables, cereals and other essential foods. In October, retail inflation hit a 14-month high of 6.2% while food prices jumped to 10.9%.

Anecdotal data suggests retail sales rose close to 15% year-on-year during the 2024 festive season, which runs from August to November, Nomura said in a note last week, about half last year's pace.

"During this festival season, we have not spent at all," said Rajwanti Dahiya, 60, who survives on her husband's monthly pension of 30,000 Indian rupees ($356.76).

"Savings are low, barely there."

A 'SHRINKING' MIDDLE

India's central bank expects 7.2% GDP growth for the fiscal year ending March 2025 on the back of improved rural demand and a strong services sector.

Higher government investment could also support demand, said Rahul Bajoria, head of India and ASEAN economic research at Bank of America.

"If government spending kicks in, that probably does have some multiplier effects on private consumption spending as well," said Bajoria, who expects GDP growth at 6.8% in the current financial year.

Some are less optimistic with Citi and IDFC First Bank economists expecting GDP growth in the July-September quarter to miss the central bank's projected 7%, weighed by slower urban consumption.

That pessimism has hit consumer stocks with the Nifty FMCG index .NIFTYFMCG declining 13% since Oct. 1, compared with a 7.4% drop in the benchmark Nifty 50 .NSEI.

Of the FMCG index's 15 constituent firms, only one reported a pickup in sales volume growth in the September quarter.

Consumers in large cities are swapping branded items from hair oil to tea for cheaper unbranded alternatives, reflected in the first sales volume decline in 11 quarters for the foods and refreshment group at Hindustan Unilever.

"We see the growth in big city standing down, although in smaller cities and in rural the growth continues to be good," Hindustan Unilever chief executive Rohit Jawa said last month, after reporting lower than expected earnings.

Consumers are also cutting back on dining out.

Fast-food chains such as McDonald's, Burger King, Pizza Hut and KFC posted same-store sales declines, earnings showed.

While people are still coming, they are choosing cheaper meals, Rajeev Varman, CEO at Burger King operator Restaurant Brands Asia RESR.NS said after posting a 3% drop in quarterly same-store sales.

"We prefer budget-friendly stores that give good deals and discounts to manage our monthly expenditure," said 37-year old Avinash Crasto, a Mumbai marketing and sales executive who has a family of four and identifies as middle class.

($1 = 84.0640 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Shivangi Acharya in New Delhi; Editing by Sam Holmes)

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Nov 12 (Reuters) - Varun Beverages Ltd VARB.NS:

• VARUN BEVERAGES - TO ACQUIRE SBC TANZANIA FOR EQUITY VALUE OF $154.50 MILLION

• VARUN BEVERAGES - TO ACQUIRE 100% STAKE OF SBC BEVERAGES GHANA AT AN EQUITY VALUE OF $15.06 MILLION

• VARUN BEVERAGES - TO ACQUIRE 39.93% OF SHARE CAPITAL OF LUNARMECH TECHNOLOGIES FOR 2 BILLION RUPEES

Source text: ID:nBSEbYhpf4

Further company coverage: VARB.NS

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Oct 22 (Reuters) - Pepsi India bottler Varun Beverages' VARB.NS third-quarter profit exceeded analysts' expectations on Tuesday as healthy demand for soda in its international markets helped outweigh a monsoon-hit domestic market.

The company's net profit rose nearly 24% to 6.20 billion rupees ($73.8 million), beating analysts' expectation of 5.76 billion rupees, per LSEG data.

Higher-than-normal rains throughout the quarter, which analysts said affected out-of-home beverage consumption in the country, hurt the firm's domestic volume growth.

During the three months ending Sept. 30, its India volume growth came in at 5.7%, as compared to a "double-digit" percentage jump last year.

Despite the domestic softness, Varun Beverages said healthy international demand helped the company post a near 22% rise in sales volume at 267.5 million cases during the quarter.

"Our global operations, particularly in Africa, are positioned to drive further growth as we capitalize on emerging demand trends and enhance our operational capabilities," Chairman Ravi Jaipuria said in a statement.

The company's revenue from operations rose 25% to nearly 50 billion rupees, which included contributions from South Africa-based BevCo that Varun Beverages had acquired in the first half of the year.

Varun Beverages also reported a 26.4% rise in expenses, due to increased spending on raw materials, including sugar, flavourings, glass bottles, and packaging during the quarter.

The company's shares reversed course after the results and climbed 1.5%. Varun Beverages is the top-performing stock in the broader Nifty FMCG index .NIFTYFMCG, which is down 0.3%.

($1 = 84.0730 Indian rupees)

(Reporting by Yagnoseni Das in Bengaluru; Editing by Eileen Soreng)

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