INDIA – Varun Beverages, the leading bottling partner for PepsiCo, has announced a 25.2 percent year-on-year increase in net profit to Rs 537.3 crore (US$64.33M) for the quarter ended March 31. 

The company’s revenue from operations for the quarter reached Rs 4,398 crore (US$526,576.98), marking an 11.2 percent year-on-year growth over the corresponding quarter of the previous financial year, where it reported Rs 3,952.60 crore (US$473235.71). 

Varun Beverages’ EBITDA for the quarter stood at Rs 988.7 crore (US$118.38M), marking a substantial increase of 23.9 percent from Rs 798 crore (US$94.47M) in Q4 FY 2022-23. Additionally, the EBITDA margins for this quarter improved by 240 basis points to 22.5 percent. 

Despite a delayed seasonality cycle due to a 17-day delay in the Holi festival, Varun Beverages achieved impressive results.  

The total sales volume grew by 7.2 percent to 24 crore cases in Q1 CY2024 from 22.41 crore cases in Q1 CY2023. The company expanded its presence in the Indian territory by 4.4 percent and international markets by 21.9 percent. 

The company’s profit before interest, depreciation, and tax rose 23.5 percent to Rs 997 crore from the year-ago period.  

“In spite of a delay in the Holi festival by 17 days resulting in a delayed seasonality cycle, we are pleased to report a reasonably strong overall operational and financial performance in the first quarter of the year,” said Ravi Jaipuria, chairman, Varun Beverages. 

According to the company’s statement, 46 percent of its consolidated sales volumes came from low-sugar or no-sugar products.  

Varun Beverages is actively working to reduce the sugar content in beverages like Mirinda, 7UP, and Pepsi in India. Additionally, the company has introduced a new formulation for zero-calorie, zero-sugar Gatorade from PepsiCo. 

In addition to its strong financial performance, Varun Beverages announced the commencement of operations at three Greenfield facilities in Supa, Maharashtra; Gorakhpur, Uttar Pradesh; and Khordha, Odisha.  

This expansion aims to meet the rising beverage demand in India and support the company’s long-term growth trajectory. 

Varun Beverages, one of PepsiCo’s largest franchisees outside the USA, produces and distributes a wide range of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs).  

During the quarter, the company completed the strategic acquisition of the South Africa-based Beverage Company (BevCo), which operates five plants in the country. 

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