INDIA – Varun Beverages Limited (VBL), one of the largest franchisees of PepsiCo outside the USA, has reported a remarkable 26.04% increase in consolidated net profit for the second quarter of 2024, reaching Rs 1,252.60 crore (US$149.6M).  

This surge was primarily driven by substantial volume growth and improved profit margins. 

During the second quarter, VBL’s revenue from operations (excluding excise duty) rose 28.25 percent year-over-year (YoY) to Rs 7,196.86 crore (US$859.7M).  

Profit before tax also climbed 26.85 percent to Rs 1,663.07 crore (US$198.7M), compared to Rs 1,311.09 crore (US$156.6M) recorded in the same quarter last year. 

Consolidated sales volume for the quarter saw a significant increase of 28.1 percent, rising to 401.6 million cases from 313.5 million cases in the previous year.  

This performance led to a 31.8 percent growth in EBITDA, which amounted to Rs 1,991.22 crore (US$237.87M), up from Rs 1,511.02 crore (US$180.5M) in the corresponding quarter last year. Consequently, the EBITDA margin improved by 74 basis points to 27.7 percent. 

On a half-year basis, VBL’s consolidated net profit grew 25.79 percent to Rs 1,789.87 crore (US$213.8M), with a 21.15 percent increase in revenue from operations to Rs 11,514.18 crore (US$1.38B) in Q2 CY24 compared to Q2 CY23. 

Ravi Jaipuria, chairman of VBL, stated: “We are pleased to report robust performance for the second quarter of CY2024, achieving a consolidated sales volume growth of 28.1%, which includes volumes from BevCo.  

The impressive volume growth of 22.9 percent in India primarily contributed to this outstanding performance, supported by our expanded capacities, enhanced distribution network, and a strong summer season.” 

Earlier this month, VBL announced an exclusive agreement with PepsiCo Inc. to manufacture, distribute, and sell ‘Simba Munchies’ in Zambia and Zimbabwe.  

This deal is expected to take effect on October 1, 2025, in Zimbabwe and April 1, 2026, in Zambia, following the construction of a production facility.  

The initial investment for the manufacturing facility is Rs 60 crore (US$7 million), which is expected to produce around 5,000 tons of Simba Munchies in various SKUs in both countries. 

Following the Q2 results, VBL’s board approved an interim dividend of Rs 1.25 per share for the financial year 2024, with August 9 fixed as the record date.  

Additionally, the board approved a sub-division of existing equity shares from one equity share with a face value of Rs 5 each into a number of equity shares with a face value of Rs 2 each, subject to shareholder approval. 

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