Varun Beverages reports 36 pc jump in Q2 revenue, PAT up 32 pc to Rs 405 crore

Varun Beverages Limited (VBL), a key player in beverage industry and one of the largest franchisee of PepsiCo worldwide, said on Thursday its revenue from operations grew 36.5 per cent year-on-year to Rs 2,810 crore in second quarter of 2019 (April to June).

The company follows calendar year (January to December) for reporting results.

While profit after tax increased by 32 per cent to Rs 405 crore from Rs 307 crore, earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 37 per cent to Rs 788 crore in Q2 2019 from Rs 575 crore in Q2 2018. EBITDA margins expanded 12 basis points during the quarter.

Total sales volumes were up 43.3 per cent year-on-year at 195.5 million cases in Q2 CY19 as compared to 136.4 million unit cases in Q2 CY18. India business recorded strong organic volume growth trend of 18.5 per cent in Q2 CY19.

"We have made rapid progress with the consolidation of the recently acquired territories in south and west regions, and also those acquired last year," said Varun Beverages Chairman Ravi Jaipuria. "This demonstrates our strong execution capabilities, efficiency of our operations and operating leverage."

During first half (January to June) of calendar 2019, revenue from operations net of excise and GST grew 32 per cent year-on-year to Rs 4,170 crore as compared to Rs 3,136 crore in H1 of 2018.

While profit after tax increased by 36 per cent to Rs 445 crore from Rs 327 crore, EBITDA increased by 35 per cent to Rs 1,006 crore from Rs 748 crore.

In line with the guidelines of dividend policy, the board of directors recommended an interim dividend of Rs 2.50 per share on enhanced equity capital base.

The company produces and distributes a wide range of carbonated soft drinks as well as a large selection of non-carbonated beverages including packaged drinking water sold under trademarks owned by PepsiCo.

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