Varun Beverages Q4 results: Net profit rises over 40% to Rs 185 crore

Pepsi India bottler Varun Beverages reported fourth-quarter profit below analysts' estimates on Monday, as higher raw material costs overshadowed volumes growth driven by its expansion in Africa.

Shares of the company, which is one of PepsiCo's largest franchisees outside the United States, fell about 1.8 per cent.

Net profit rose more than 40 per cent from a year earlier to Rs 185 crore ($21.12 million) in the quarter ended December 31. However, that missed analysts' average estimate of Rs 211 crore, according to data compiled by LSEG.

Revenue from operations rose 39.8 per cent to nearly Rs 3,818 crore, while expenses jumped 41.3 per cent due to an increase in the costs of raw materials such as sugar, flavourings, glass bottles, and packaging, and higher value-added taxes.  READ: NYKAA Q3 Results: Net profit rises 61% to Rs 26 crore, revenue up 27%

Varun Beverages, which packages and distributes beverages under Pepsi, Mirinda and Tropicana labels, is expanding its presence in several African countries, including South Africa, Ghana and Tanzania, citing robust demand potential.

"Consolidated volumes increased by 23.2 per cent, largely led by new territories," Chairman Ravi Jaipuria said in a presentation to investors.

The Gurugram-based company said its domestic volumes increased 11.4 per cent during the quarter.