Hindustan Coca-Cola Beverages (HCCB) Ltd, the bottling subsidiary of the prominent beverage company Coca-Cola in India, saw a remarkable twofold increase in its net profit, reaching INR 809.32 crore for the fiscal year 2023, as reported by business intelligence platform Tofler. The company, with a network of 16 factories spanning across India, disclosed a substantial 41.51 percent surge in its operational revenue, totaling INR 12,735.12 crore for FY23, according to its submission to the Registrar of Companies.
In the prior fiscal year (FY22), HCCB recorded a net profit of INR 377.14 crore, with its operational revenue amounting to INR 8,999.30 crore.
Nonetheless, HCCB’s other income for FY23 experienced a decline of 29.48 percent, reaching INR 105.27 crore.
The total income for FY23 reached INR 12,840.39 crore, marking a substantial increase of 40.35 percent compared to the total income of INR 9,148.59 crore in FY22.
HCCB witnessed a notable 39.79 percent increase in its operating expenses, which amounted to INR 11,191.26 crore for the fiscal year ending in March 2023.
“After two consecutive years of Covid-related disruptions and business impact, your company has delivered an impressive performance for the Financial Year 2022-23,” said HCCB.
The company emphasized maintaining a “laser-sharp” focus on execution, expanding its market reach, and safeguarding its business model, as stated.
HCCB produces and markets a diverse range of 60 products spanning seven distinct categories. Among its product offerings are popular beverages such as Coca-Cola, Thums Up, Sprite, Minute Maid, Maaza, SmartWater, Kinley, Limca, and Fanta.
“Your company strongly believes in the long-term prospects of the category, and hence, has continued to invest and accordingly has made an additional investment of INR 1304.64 crore in property plant and equipment to build HCCB into a Total Beverage Company,” it said.
In the short term, the Indian economy encountered a variety of challenges on multiple fronts; however, it continues to stand as one of the most dynamic major economies globally, with substantial potential for growth in the long term.
It mentioned that a favorable demographic composition, rapid urbanization, and rising prosperity serve as significant structural catalysts for India’s economic growth.
HCCB stated that it responded swiftly and flexibly by adjusting to evolving consumer demands. To broaden its reach in entry-level packaging, including 150 ml Tetra, 200 ml RGB, and 250 ml PET, the company extended its presence through strategic investments in these segments, involving new production lines and glass bottles, along with effective market execution.
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Regarding the future prospects, it expressed a highly optimistic long-term outlook for the beverage business in India.
The foundational factors supporting long-term growth, including increasing disposable incomes, heightened consumer awareness, relatively low levels of consumer goods market penetration, advantageous demographics, the ongoing urbanization trend, and a growing preference for established brands, remain steadfastly in position.
HCCB “will continue to focus on the new opportunities like E-Commerce, Grocery, Pharmacy etc. to grow organically and inorganically in line with its vision and mission”.
The company will maintain its commitment to invest in enhancing capabilities to align with market demand and foster innovation, with a focus on expanding manufacturing capacity and increasing chilling equipment capacity.
