Varun Beverages' March quarter profit up y-o-y by 24.9%

13 May 2024 , 12:55 PM

Varun Beverages reported a consolidated net profit of ₹547.9 Crore for the March quarter, marking a 24.9% growth from the same period last fiscal year. The company’s revenue stood at ₹4,397.9 Crore, representing an 11.2% increase, as disclosed in a regulatory filing.

Operating on a January-December financial year cycle, Varun Beverages is a prominent player in the beverage industry and holds a significant position as one of PepsiCo’s largest franchisees globally.

Net realization per case witnessed a 3.5% rise in Q1 CY2024 to ₹179.7, attributed to an improved product mix in India and a higher contribution from international markets with superior realization per case.

EBITDA surged by 23.9% to ₹988.7 Crore Year-on-Year (YoY), with EBITDA margin expanding by 240 basis points to 22.9% in Q1 CY2024. This growth was propelled by increased gross margins and realization, notwithstanding elevated fixed costs associated with territorial acquisitions and the establishment of new greenfield plants.

The company inaugurated three new greenfield facilities in Supa, Maharashtra; Gorakhpur, Uttar Pradesh; and Khordha, Odisha, reinforcing its commitment to growth in the Indian market.

Ravi Jaipuria, Chairman of Varun Beverages Limited, emphasized the strategic expansion to meet escalating beverage demand in India and bolster long-term growth.

The company anticipates the commencement of operations at its new factory in the Democratic Republic of the Congo in the upcoming quarter. Notable achievements include the acquisition of The Beverage Company in South Africa, fortifying its presence in multiple African markets. Additionally, a deal was signed in Morocco to produce and package Cheetos, expanding the company’s snack offerings alongside existing PepsiCo products.

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