Varun Beverages Ltd Sept qtr profit up 22% to Rs 629 cr

New Delhi: Varun Beverages Ltd (VBL), PepsiCo's largest franchise bottler, on Tuesday reported 22.33 per cent rise in consolidated net profit at Rs 628.82 crore for September quarter driven by volume growth and improved margins.

The company, which follows calendar year as its financial year, had posted a net profit of Rs 514.05 crore during July-September period a year ago, according to a regulatory filing from VBL.

Revenue from operations was up 25.25 per cent 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 per cent 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 September quarter, VBL’s gross margins increased by 22 basis points to 55.5 per cent and EBITDA margin improved by 117 bps to 24 per cent, driven by operational efficiencies.

Total expenses were up 26.37 per cent to Rs 4,156.08 crore in September quarter. Total income was Rs 4,956.31 crore, up 25.28 per cent.

Consolidated sales volume grew 21.9 per cent 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 grow in mid-single digit ( 5.7 per cent), and international volume grew by 7.9 per cent 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 per cent 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 per cent from the previous close.