Shares of Varun Beverages rose 8.5% on October 29 after it announced partnership with Carlsberg for beer business in Africa and net profit in September quarter rose 19%.
On October 29, the Pepsi India bottler said its net profit rose 19% to Rs 745 crore, driven by "lower finance cost and higher other income which includes interest on deposits in India and favorable currency movement in the international territories".
The company's revenue increased 2% to Rs 4,897 crore.
The company also announced incorporation of wholly-owned subsidiary in Kenya "to carry on the business of manufacturing, distribution and selling of beverages".
It also announced partnership with beer giant Carlsberg. "Certain African subsidiaries of VBL, to test market beer in their territories, have entered into an exclusive Distribution Agreement with Carlsberg Breweries A/S for their brand - Carlsberg," said the company in a stock exchange filing.
"In response to the growing popularity of Ready To Drink (RTD) and variety of Alcoholic Beverages, VBL sees an opportunity for expansion into the business of RTD & Alcoholic Beverages of any type or description, including beer, wine, liquor, brandy, whisky, gin, rum, vodka in India & abroad," the company added.
At 12:35 pm on October 29, Varun Beverages shares on NSE snapped three-day losses and were trading 8.5% higher at Rs 493 apiece, their biggest intraday gain in about a year. Over 17 million shares got traded on October 29, nearly 4x the 30-day average.
Ravi Jaipuria, Chairman, Varun Beverages Limited, said, “We have delivered a steady performance during the quarter, with consolidated sales volumes rising by 2.4%, supported by healthy traction in international markets. While domestic volumes remained subdued due to prolonged rainfall across India, international operations grew by 9%.
"Performance in international territories continued to be healthy, with South Africa delivering another quarter of strong growth. In South Africa, we see significant potential to further strengthen our market position, and we continue to put in place the building blocks to support sustained growth in the region. Our ongoing backward integration initiatives across key locations are driving higher efficiency and operational resilience.
"Further, in line with our growth strategy, we are incorporating a wholly-owned subsidiary in Kenya under Varun Beverages Limited to carry on the business of manufacturing, distribution and selling of beverages. We are also diversifying our product offerings and certain African subsidiaries of VBL shall test market beer in their territories through an exclusive Distribution Agreement with Carlsberg Breweries A/S for their Carlsberg brand. These developments collectively reflect our continued commitment to broadening our product base and strengthening our presence across key growth markets."
EBITDA remained flat while EBITDA margins declined slightly by 53 bps to 23.4% in Q3 CY2025 compared to 24.0% in Q3 CY2024.
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