Varun Beverages posts 33% rise in Q1CY25 PAT, announces dividend; details

During Q1CY25, Varun Beverages' net profit zoomed 33.5 per cent Year-on-Year (Y-o-Y) to ₹731.35 crore from ₹547.98 crore reported in the corresponding quarter of the previous year

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Varun Beverages share price: Shares of Varun Beverages rose 1.56 per cent to ₹537.25 on the BSE during intra-day trading on Wednesday, April 30, 2025, on the back of the company's announcement of its financial results for the first quarter of calendar year 2025 (CY25). Alongside the earnings report, Varun Beverages also declared a dividend for its shareholders.

Varun Beverages Q1CY25 results

During Q1CY25, Varun Beverages' consolidated net profit after tax zoomed 33.5 per cent Year-on-Year (Y-o-Y) to ₹731.35 crore from ₹547.98 crore reported in the corresponding quarter of the previous year. The company's revenue from operations climbed 29.2 per cent Y-o-Y to ₹5,680 crore in Q1CY25 from ₹4,397.98 crore reported in Q1CY24. The company's total expenses also grew 27.9 per cent Y-o-Y to ₹4,616.60 crore from ₹3,609.75 crore.

 

During Q1CY25, the company's Earnings before interest, taxes, depreciation, and amortisation (Ebitda) stood at ₹1,263.96 crore, up 27.8 per cent Y-o-Y from ₹988.76 crore.

 

The company’s consolidated sales volume grew by 30.1 per cent to 312.4 million cases in Q1 CY2025 from 240.2 million cases in Q1 CY2024, driven by strong organic volume growth of 15.5 per cent in India and inorganic volume contributions from South Africa and DRC.

 

Realisation per case increased by 1.8 per cent in India and remained flat in international markets (ex. South Africa). There was a decline of 0.9 per cent in net realisation per case at the consolidated level because of lower realisation in own brands in the South Africa market.

 

Due to the relatively lower margin profile of owned brands in the South African market and the higher mix of CSD in India, gross margins stood at 54.6 per cent, a decline of 171 basis points as compared to Q1 CY2024. In Q1 CY2025, the mix of low sugar / no sugar products has increased to ~59 per cent of our consolidated sales volumes.  ALSO READ | Tata group stock trades lower for 6th straight day; slips 15% in 3 days

Management commentary

Commenting on the performance for Q1 CY2025, Ravi Jaipuria, Chairman, Varun Beverages, said, "We are pleased to report a strong operational and financial performance in the first quarter of CY2025. The integration of the SA territory has progressed well, with focused efforts on strengthening on-ground infrastructure, streamlining operations, and enhancing execution across the market. We achieved 141 million cases in SA over the trailing four quarters, marking a growth of 13 per cent over the same period last year. Historically, net realisations in SA are lower due to a higher mix of own brands; however, we are actively working to scale PepsiCo’s portfolio, which is expected to support improvements in realisations and margins going forward.”

 

"Looking ahead, we see immense headroom for growth in India’s beverage market, supported by rising per capita incomes, accelerating urbanisation, expanding electrification, and improving cold-chain infrastructure. With adequate capacities in place, a diversified product portfolio, and a strengthened distribution network, we remain well-positioned to capitalise on these opportunities and deliver sustainable value to all stakeholders.”

Varun Beverages dividend announcement

Varun Beverages, in an exchange filing, has said that its board has approved the payment of an interim dividend of ₹0.50 per equity share for the Financial Year 2025 on the total issued, subscribed and paid-up 3,38,18,65,692 equity shares of the nominal value of ₹2 each.

 

The company has fixed Wednesday, May 7, 2025, as the record date for the purpose of determining the entitlement of equity shareholders for receipt of the interim dividend.

 

The interim dividend, Varun Beverages said, will be paid on and from Friday, May 9, 2025, to those shareholders whose names appear in the Register of Members of the Company or in the list of beneficial owners maintained by the Depositories as on Wednesday, May 7, 2025.  ALSO READ | Why did investors dump Bajaj Finance shares post Q4 results? Stock tanks 6%

 

About Varun Beverages

Varun Beverages is a producer and distributor of carbonated soft drinks and non-carbonated beverages in India and several international markets. The company operates 48 manufacturing facilities across India and other countries, serving a wide range of PepsiCo brands. Varun Beverages has a strong distribution network, with over 2,600 owned vehicles and 2,800+ primary distributors across its territories.

 

The company has a market capitalisation of ₹1,78,917.60 crore on the BSE, as of April 30, 2025.

 

Varun Beverages shares have posted a decline of nearly 19 per cent year-to-date. In contrast, the benchmark Nifty50 has advanced 2 per cent during the same period.

 

The company's shares have a 52-week range of ₹682.84 – ₹419.40 on the BSE.

 

At 1:28 PM on Wednesday, Varun Beverages shares were quoted trading at ₹529.05 per share, up marginally 0.02 per cent from its previous close of ₹528.95 on the BSE.