Hindustan Coca-Cola Beverages Ltd (HCCBL), the bottling arm of Coca-Cola in India, has reported a significant three-fold increase in net profit to INR 2,808.31 crore for the fiscal year ending March 2024.
HCCB income stands at INR 14,236 Cr, expenses at INR 13,044 Cr
This growth was accompanied by a 10.10% rise in revenue, reaching INR 14,021.54 crore.
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Notably, the company’s total income for FY24 rose 10.77% to INR 14,236.18 crore, while total expenses increased 10.48% to INR 13,044.50 crore. HCCBL’s profit before tax climbed three-fold to INR 3,718.38 crore. However, tax expenses surged to INR 910.07 crore, compared to INR 204.32 crore in FY23.
HCCBL operates 16 factories across India and manufactures over 60 products, including popular brands like Coca-Cola, Thums Up, Sprite, Minute Maid, Maaza, and Fanta. The company’s advertising and sales promotion expenses in FY24 jumped 69.21% to INR 108.11 crore, and inventory losses rose by 25.4% to INR 94.07 crore.
Coca-Cola India registers 42% decline in profit
In contrast, Coca-Cola India Pvt Ltd, the entity managing brand operations, experienced a decline in net profit by 41.82% to INR 420.29 crore, down from INR 722.44 crore in FY23. Revenue increased by 4.24% to INR 4,713.38 crore. Total income reached INR 4,801.84 crore, and total expenses rose by 16.27% to INR 4,210.11 crore.
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Meanwhile, HCCBL has also adopted an asset-light strategy, divesting certain business undertakings through Business Transfer Agreements (BTA) and Asset Transfer Agreements (ATA). This move aligns with Coca-Cola’s broader strategic focus, which includes franchising operations in key Indian territories.
“Our focus on operational efficiency, innovation, and strategic partnerships has driven our growth,” said an HCCBL spokesperson. “We will continue to invest in our brands, people, and infrastructure to drive sustainable growth and profitability.”
Further, India remains Coca-Cola’s fifth-largest market, with varied financial performances within its brand and bottling segments. The company’s growth is attributed to its diversified product portfolio and expanding presence in the Indian market.
