Varun Beverages Q2 results: Net profit rises 26% to Rs 1,253 crore

Varun Beverages, the largest bottling partner for beverage company Pepsico, reported a 26 per cent uptick in net profit in the second quarter ended June 30, to Rs 1,253 crore from the year-ago period.

The company, which follows the January-December financial year, had reported a net profit of Rs 994 crore in the year-ago period.

Meanwhile, the company reported a 28.3 per cent uptick in net sales to Rs 7,197 crore from Rs 5,611 crore in the year-ago period.

“We are pleased to report robust performance for the second quarter of CY2024. The impressive volume growth in India primarily contributed to this outstanding performance, supported by our expanded capacities, enhanced distribution network, and a strong summer season. Meanwhile, our international markets remained relatively flat, moreover, it was a seasonally weak quarter for the African market,” said Ravi Jaipuria, chairman, Varun Beverages.

The company reported a robust volume growth of 22.9 per cent in India. The consolidated sales volume growth stood at 28.1 per cent, which includes volumes from South Africa-based BevCo. Carbonated soft drinks constituted 76 per cent of the total sales volume in the June quarter, followed by juice at 8 per cent and packaged drinking water at 16 per cent.

Its profit before interest, depreciation and tax (PBIDT) rose 31.1 per cent to Rs 2,035 crore from the year-ago period.

The company also announced a stock split in the ratio of 2:5, along with an interim dividend of Rs 1.25 per share.

“We are on track to deliver healthy double-digit growth in this calendar year. India remains a high-demand market with massive growth potential, driven by a growing consuming class and a young population,” Jaipuria said, while adding that the company will focus on further strengthening its infrastructure, distribution network, and product portfolio in the country.