Consolidated revenue, net of excise duty, grew nearly 22% year-on-year to Rs 3,871 crore, driven by healthy growth in volumes and realizations.
Despite strong profit growth, the stock erased gains and fell 0.7% to Rs 946.10 due to profit booking. Before the earnings, the stock had touched a one-month high of Rs 965.70.
Consolidated sales volumes increased 15.4% in the third quarter of the calendar year to 220 million cases, driven by double-digit growth in Indian and international markets, the company said.
Varun Beverages, which is PepsiCo’s second franchisee outside the US, tracks the calendar year.
Net realization increased by 5.6% to Rs 176.3 per case, driven by an increase in realization per case mainly in international markets.
Operating profit, calculated as earnings before interest, tax, depreciation and amortization (EBITDA), rose 26% year-on-year to Rs 882 crore. Gross margins improved 163 basis points to 55.3% during the quarter, mainly due to softening PET. chip prices. Thanks to higher gross margins and higher operational efficiencies, EBITDA margin improved by 79 basis points to 22.8%.
“We have made significant progress operationally by making significant investments to develop both new and industrial manufacturing facilities across India,” said Ravi Jaipuria, Chairman, Varun Beverages.
As part of its commitment to diversify and enhance its portfolio, the company is also enhancing its value-added juice and dairy beverage capacity to align with evolving consumer demand, Jaipuria said.
“As we intensify our presence in India and expand our reach in Africa, our strategic initiatives aim to strengthen our position in the global beverage industry,” he added.
For the nine months ended September, net revenue increased 22% year-on-year to Rs 13,375 crore, EBITDA increased 29% to Rs 3,191 crore and net profit increased by more than 33% to reach Rs 1,958 crore.
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