Varun Beverages Ltd. reported revenue of ₹4,398 crore during the January to March quarter, which on a year-on-year basis, was a growth of 11%.
The company follows a January-December calendar year format.The management said that the overall operational and financial performance during the quarter was strong despite a delay in the festival of Holi by 17 days, which resulted in a delayed seasonality cycle.Net profit for the period increased by 25% to ₹537.2 crore.
The company will also foray into the Democratic Republic of Congo where PepsiCo is not present.Varun Beverages, the largest franchise of PepsiCo in the world, outside the US, has also approved the incorporation of Varun Foods (Zimbabwe) Pvt.
Ltd. to carry out the business of food products.Shares of Varun Beverages are trading 1% lower post the results announcement at ₹1,449.8.
The stock is up 17% so far in 2024.
Varun Beverages Ltd. reported revenue of ₹4,398 crore during the January to March quarter, which on a year-on-year basis, was a growth of 11%. The company follows a January-December calendar year format.The management said that the overall operational and financial performance during the quarter was strong despite a delay in the festival of Holi by 17 days, which resulted in a delayed seasonality cycle.Net profit for the period increased by 25% to ₹537.2 crore. Earnings Before Interest, Tax, Depreciation and Amortisation increased by 24% to ₹990 crore, while EBITDA margin expanded by 230 basis points to 22.5% from 20.2% last year.The company's realisation per case increased by 3.5% during the quarter, when compared to the year-ago period, which reflected an improved product mix in India and higher contributions from the international markets, the company's press release said.Varun Beverages said that it is focusing on reducing sugar content in its products. Nearly 46% of the consolidated sales volume of the company came from no sugar or low sugar products.Removal of corrugated pads in packaging and use of light-weight packaging material, is another focus area for the company, which has improved the company's gross margin by 385 basis points to 56.3% from 52.4%.For the core Indian market, Varun Beverages has commenced three new greenfield facilities in Maharashtra, Uttar Pradesh and Odisha, with a capex outlay of ₹1,000 crore, ₹1,100 crore and ₹700 crore respectively, to meet the rising beverage demand and support its long-term growth trajectory.During the quarter, Varun Beverages also completed the strategic acquisition of The Beverage Company (BevCo) in South Africa.Varun Beverages Morocco SA, a wholly-owned subsidiary, has entered into an exclusive snacks appointment agreement to manufacture and package Cheetos in Morocco by May 2025.The three growth engines highlighted by Varun Beverages for its international business include the combined territory of South Africa, including Lesotho, Eswatini, Namibia, Botswana, Mozambique and Madagascar. The company will also foray into the Democratic Republic of Congo where PepsiCo is not present.Varun Beverages, the largest franchise of PepsiCo in the world, outside the US, has also approved the incorporation of Varun Foods (Zimbabwe) Pvt. Ltd. to carry out the business of food products.Shares of Varun Beverages are trading 1% lower post the results announcement at ₹1,449.8. The stock is up 17% so far in 2024.
