Varun Beverages Q4 net profit rises 36% to Rs 196 crore, firm declares dividend

Varun Beverages Q4 net profit rises 36% to Rs 196 crore, firm declares dividend

Pepsi India bottler Varun Beverages on February 10 reported 36% jump in net profit at Rs 196 crore for the quarter ended December 31, 2024, driven by volume growth and improved margins. It reported net profit of Rs 144 crore in the year-ago period.

Varun Beverages' revenue from operations rose 40% to Rs 3,818 crore in Q4FY25 as against Rs 2,730 crore in Q4FY24.

The firm has declared a dividend of Rs 0.5 per equity shares.

At 12:25 pm, Varun Beverages shares were trading 1.6% lower at Rs 545 apiece.

Varun Beverages, which packages and distributes beverages under Pepsi, Mirinda and Tropicana labels, is expanding its presence in several African countries, including South Africa, Ghana and Tanzania, citing robust demand potential.

The Gurugram-based company said its domestic volumes increased 11.4% during the quarter.

“We are pleased to conclude CY2024 on a strong note through adding geographical presence into new territories of South Africa along with distribution rights in Namibia, Botswana, Mozambique and Madagascar. We also started greenfield operations into a new country of Democratic Republic of Congo (DRC). The growth has been driven by organic volume growth and improved product mix. India volumes grew 11.4%, reflecting the strength of our distribution network and operational execution. Consolidated volumes increased by 23.2%, largely led by new territories resulting in consolidated revenues increase by 24.7%, EBITDA growth of 30.5%, and PAT growth of 25.3% for the year.

"We are progressing well in South Africa as we grew the sales volumes by 12.5% in the very first year of operations. We are consciously reducing our reliance on modern trade channel and enhancing our distribution network in general trade. As an enabler, we have placed more visi-coolers in the SA market in a single year than what was cumulatively placed till date by previous operators. We are working on plans for backward integration in the territory," said Ravi Jaipuria, Chairman – Varun Beverages.

EBITDA increased by 39% to Rs 580 crore in Q4FY25 from Rs 418 crore in the year-ago period.