“Always take the high road, it’s far less crowded.” - Charlie Munger
In the words of Mr. Warren Buffett, "a business is a moving picture and not a static one." We have to bet on the future probabilities in a business and it's important to stay abreast of the developments taking place. A few months ago we analysed Varun Beverages Ltd. in detail. However, this business like any other business, is a moving picture we should keep ourselves updated about. The results this time are really important and could turn out to be a leading indicator of the future course the business might take.
The energy drinks market is growing at blitzscale and Sting, an energy drink from the stable of Pepsi is manufactured, marketed & distributed in India by Varun Beverages, is growing ahead of the industry. In 2017, the sales from this newly launched product was ₹0 and fast forward today its contribution to Varun Beverages sales is ~₹850 Cr. This is a high margin product for the company. Further, there are some very interesting business updates you shouldn’t miss.
We hope you’ll like this brief update on the business & its earnings.
