Varun Beverages logs 76% rise in net profit to Rs 143.8 cr in Q3

New Delhi: Varun Beverages Ltd, PepsiCo's largest franchise bottler, on Monday reported a 76.35 per cent increase in consolidated net profit to Rs 143.76 crore for the December quarter, driven by growth in revenue from operations and improved profit margins.

The company, which follows the calendar year as its financial year, posted a net profit of Rs 81.52 crore during the October-December period a year ago, according to a regulatory filing from VBL.

Its revenue from operations was up 21 per cent to Rs 2,730.98 crore during the quarter under review. It stood at Rs 2,257.20 in the corresponding quarter last fiscal.

Revenue from operations was "driven by volume growth in both India and international markets," said VBL in an earnings statement.

Similarly, its PAT increase was also "driven by growth in revenue from operations and improved profit margins," it added.

Total expenses of VBL were up 17.24 per cent to Rs 2,552.32 crore in the December quarter.

VBL's total income in the December quarter was at Rs 2,740.09 crore, up 20.89 per cent.

For the year 2023, VBL's net profit was up 35.6 per cent to Rs 2,101.81 crore and its revenue from operations was up 21.9 per cent to Rs 16,321.06 crore.

In 2023, the consolidated sales volume of VBL "grew 13.9 per cent to 912.9 million cases" led by a double-digit growth in both Indian (13 per cent growth) and international (18 per cent growth) markets, it added.

Commenting on the results, VBL Chairman Ravi Jaipuria said, "Despite the abnormally high unseasonal rains in the peak season, we are pleased to conclude CY2023 on a strong note. We witnessed a healthy double-digit volume growth in both Indian and international markets." On the outlook, he said VBL's strategy is geared towards sustaining healthy growth momentum.

"We will continue to focus on strengthening our market position, both in India and internationally, and place emphasis on product categories that are aligned with evolving consumer preferences," Jaipuria said.

VBL accounts for 90 per cent of PepsiCo's beverage sales volume in India.

Meanwhile, VBL in a separate filing said its board has approved recommendation of final dividend of Rs 1.25 per equity share of the nominal value of Rs 5 each for the year ended December 31.

It has also approved the re-appointment of Varun Jaipuria, Raj Gandhi, Rajinder Jeet Singh Bagga, and Naresh Trehan on the board for the next five years.

Shares of Varun Beverages Ltd on Monday settled at Rs 1,302.15 on the BSE, up 1.28 per cent from its previous close.