Varun Beverages, PepsiCo’s bottling partner, reported a 22.3% year-on-year (YoY) increase in net profit, reaching INR 628.83 crore for Q2 ending September 2024 on Tuesday, October 22.
Last year’s profit for the same period was INR 514 crore. For the 9 months ending September 2024, the profit increased by 24.5%.
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Varun Beverages sales volume rises to INR 26.75 cr
According to ET Retail, the company’s revenue grew by 24.1% YoY to INR 4,804.68 crore in Q3CY24. Consolidated sales volume increased by 21.9% to INR 26.75 crore cases in Q3CY24, compared to 21.95 crore cases previous year. This consists of 3.4 crore cases from BevCo and DRC in the current quarter.
Meanwhile, the company reported that heavy rains during the quarter resulted in a 5.7% growth in India and a 7.9% organic growth in international volumes, according to their exchange filing.
Varun Beverages EBITDA surges to 30.5% in same quarter
In addition, earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 30.5% to INR 1,151.12 crore, up from INR 882.14 crore in the same quarter last year. Due to operational efficiencies, the company’s EBITDA margin improved by 117 basis points to 24.0% in Q3CY24.
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“We are pleased to report another strong quarter, despite the challenges posed by excessive rainfall in India. We achieved consolidated revenue growth of 24.1%, including contributions from BevCo, driven by our expanded distribution network, increased product penetration, and favourable demand trends in key markets. Enhanced operating efficiencies led to an improvement of 117 bps in our EBITDA margins, resulting in a robust 30.5% growth in EBITDA, and a healthy 22.3% growth in PAT for the quarter,” commented Ravi Jaipuria, Chairman of Varun Beverages.
After announcing their Q3 results, Varun Beverages’ shares rose by 1.7% to INR 588.10 on the BSE.
