Varun Beverages Q2 results: Net profit jumps 25% to Rs 1,005 crore - Moneycontrol

Varun Beverages Ltd on August 3 reported a consolidated net profit of Rs 1005.4 crore for the June quarter of FY24, registering a growth of 25.3 percent from Rs 802 crore in the same quarter of the previous financial year.

Total revenue for the second quarter came in at Rs 5,699.7 crore, up 13.5 percent from Rs 5,017.57 crore in the year-ago period, driven by an increase in net realisation, the company said in a regulatory filing.

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.

“We have delivered a resilient performance in the quarter, despite facing a soft demand environment in India due to abnormally high unseasonal rains throughout the quarter," chairman Ravi Jaipuria said in an investor presentation.

Earnings before interest, tax, depreciation and amortization (EBITDA) were at Rs 1,511 crore, growing 20.8 percent year on year. The EBITDA margin improved 169 basis points to 26.9 percent, driven by higher gross margins and operational efficiencies, the company said.

One basis point is one-hundredth of a percentage point.

The board approved an interim dividend of Rs 1.25 a share. The total cash outflow would be around Rs 1,62.4 crore.

During the quarter, the company incorporated a new subsidiary, Varun Beverages South Africa (PTY) LTD, in Johannesburg, to explore the business of manufacturing and distribution of beverages.

It also commissioned a new facility in Rajasthan's Bundi and Jabalpur in Madhya Pradesh as well as expanded capacity at six existing locations.

The company also recently introduced 100 percent recycled plastic bottles for Pepsi Black in certain sub-territories.

At 11.51 am, Varun Beverages was trading 2.49 percent higher at Rs 828.25 as on NSE.

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