Food & Beverage
Varun Beverages September quarter profit up 22%
TFW Bureau
Oct 23, 2024 - 2 min read
The company, which follows the calendar year as its financial year, had posted a net profit of Rs 514.05 crore during the July-September period a year ago, according to a regulatory filing from VBL.
Varun Beverages Ltd (VBL), PepsiCo’s largest franchise bottler, on Tuesday reported a 22.33% rise in consolidated net profit at Rs 628.82 crore for the September quarter driven by volume growth and improved margins. The company, which follows the calendar year as its financial year, had posted a net profit of Rs 514.05 crore during the July-September period a year ago, according to a regulatory filing from VBL.
Revenue from operations was up 25.25% to Rs 4,932.06 crore as against Rs 3,937.75 crore in the corresponding quarter last fiscal. “PAT (Profit after tax) increased 22.3% to Rs 628.8 crore in Q3 CY2024 from Rs 514 core in Q3 CY2023 driven by volume growth and improved margins,” said VBL in its earning statement. In the September quarter, VBL’s gross margins increased by 22 basis points to 55.5% and EBITDA margin improved by 117 bps to 24%, driven by operational efficiencies.
Total expenses were up 26.37% to Rs 4,156.08 crore in the September quarter. Total income was Rs 4,956.31 crore, up 25.28%. Consolidated sales volume grew 21.9% to 267.5 million cases in Q3 CY2024 from 219.5 million cases in Q3 CY2023. “ This includes ~34 million cases from BevCo (the South American bottler which it acquired in March 2024) and DRC (Democratic Republic of Congo ) during the current quarter,” said VBL.
However, heavy rains throughout the quarter led to India volumes growing in the mid-single digits ( 5.7%), and international volume grew by 7.9% organically, it said. Commenting on the outlook, VBL Chairman Ravi Jaipuria said:” Overall, our focus remains on sustaining healthy growth in both Indian and international markets. The Indian market, with its growing consumption class and evolving consumer preferences, continues to offer immense opportunities.”
“ Meanwhile, our global operations, particularly in Africa, are positioned to drive further growth as we capitalise on emerging demand trends and enhance our operational capabilities.” VBL accounts for 90% of PepsiCo’s beverage sales volume in India. Shares of Varun Beverages Ltd on Tuesday were trading at Rs 597.50 apiece on BSE, up 3.34% from the previous close.
Source: PTI
