Varun Beverages, one of the largest bottling partners of PepsiCo, on Tuesday reported a profit growth of 23.7 per cent for the third quarter of CY2024 at Rs 619.61 crore in comparison to Rs 501.07 crore recorded during the corresponding quarter of last year. It posted revenue from operations at Rs 4932.06 crore, up 25.3 per cent as against Rs 3937.76 crore during the same period of previous year. The company EBITDA increased by 30.5 per cent to Rs 1151.12 crore. This is the third quarter for Varun Beverages as the company reports earnings in a calendar year format.
Net realization per case increased by 1.9 per cent to Rs 179.6 in Q3CY2024. The company recorded sales volume growth by 21.9 per cent to 267.5 million cases in Q3 CY2024 from 219.5 million cases in Q3 CY2023. This includes around 34 million cases from BevCo and DRC during the current quarter. The company said that heavy rains throughout the quarter led to India volumes growing in mid-single digits i.e. 5.7 per cent and international volumes grew by 7.9 per cent organically.
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While CSD constituted 75 per cent, JBD 4 per cent, Packaged Drinking Water comprised 21 per cent in Q3 CY2024 at a consolidated level.
Ravi Jaipuria, Chairman, Varun Beverages Limited, said, “We are pleased to report another strong quarter, despite the challenges posed by excessive rainfall in India. We achieved consolidated revenue growth of 24.1%, including contributions from BevCo, driven by our expanded distribution network, increased product penetration, and favorable demand trends in key markets. Enhanced operating efficiencies led to an improvement of 117 bps in our EBITDA margins, resulting in a robust 30.5% growth in EBITDA, and a healthy 22.3% growth in PAT for the quarter.”
On the operational front, the company announced successful commissioning of its greenfield facility in the Democratic Republic of Congo (DRC). “In response to strong demand and our limited presence in the region, we have swiftly ramped up the facility to 100 per cent utilization on three shift basis. This performance has encouraged us to move forward with expansion plans including backward integration and a second facility, expected to commence operations in the next calendar year,” said Ravi Jaipuria.
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