Varun Beverages on February 5, reported a consolidated net profit of Rs 132 crore for the December quarter of FY24, registering a growth of 77 percent from Rs 75 crore in the year-ago period.
Total revenue for the third quarter came in at Rs 2,731 crore, up 21 percent from Rs 2,257 crore in the year-ago period. The net realization per case rose by 7.0% in the calendar year 2023, reaching Rs. 175.7. This increase was propelled by the sustained enhancement in the mix of smaller SKUs (250ml) within the Indian markets and a higher realization per case in international markets.
Varun Beverages, which is a key player in the beverage industry and one of the largest franchisees of PepsiCo in the world outside the US, follows the January-December financial year.
Earnings before interest, tax, depreciation and amortization (EBIDTA) for the quarter was at Rs 419 crore growing by 37 percent. EBIDTA margin was at 15.3 percent compared to 13.6 percent in the year ago period. This was led by led by increased realization and higher gross margins.
"We will continue to focus on strengthening our market position, both in India and internationally, and place emphasis on product categories that are aligned with evolving consumer preferences. Our journey through CY2023 has set a solid foundation for continued success, and we remain confident in our ability to deliver sustainable growth and value for all our stakeholders in the years to come." said Ravi Jaipuria, Chairman.
The company has agreed to acquire a 100 percent stake in The Beverage Company (Proprietary) Limited, South Africa, and its subsidiaries, with the option for minority co-investment. BevCo, primarily engaged in manufacturing and distributing licensed/non-alcoholic beverages, holds franchise and distribution rights from PepsiCo Inc. in South Africa and neighboring countries. The enterprise-level transaction is valued at approximately ZAR 3 billion (~INR 13.20 billion). BevCo achieved a net revenue of ZAR 3,615 million (~INR 15.90 billion) in FY23.
The Board of Directors has sanctioned a final dividend payment of Rs. 1.25 per equity share with a face value of Rs. 5, pending approval from equity shareholders at the upcoming annual general meeting. Consequently, the total dividend declared for the fiscal year ending December 31, 2023, amounts to Rs. 2.50 per equity share with a face value of Rs. 5 each.
Shares of Varun Beverages is trading 1.35 percent higher at Rs 1303 on BSE at 12:53 pm.
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