On Monday, Varun Beverages, the bottler for Pepsi in India, announced a third-quarter profit that exceeded expectations, thanks to increased sales volume and consistent demand.
The consolidated net profit surged by 31.5% to 5.01 billion rupees ($60.20 million) for the three-month period ending on September 30, in comparison to 3.81 billion rupees from the previous year.
According to data from LSEG, the average analyst expectation was a profit of 4.51 billion rupees.
Based in Gurugram and operating in six countries, this company is one of PepsiCo’s largest franchisees outside the United States. It is responsible for packaging and distributing beverages bearing the Pepsi, Mirinda, and Tropicana labels.
In the quarter, Varun Beverages recorded a substantial 21.2% increase in revenue from its operations, totaling 39.38 billion rupees.
According to a company statement, consolidated sales volume in the quarter increased by 15.4%, reaching 220 million cases compared to 190 million cases the previous year. This growth was driven by double-digit expansion in both Indian and international markets.
The company stated that Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 26.2% to 8.82 billion rupees in the quarter, supported by improved gross margins.
Nonetheless, the cost of materials used in the quarter increased by 11.8% to 16.35 billion rupees.
The company’s shares, which include sales of Aquafina packaged bottled water, experienced a 0.4% decline following the release of the results. Nonetheless, the stock has seen a 43.1% increase year-to-date.
