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Varun Beverages firms up after strong Q3 results

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The company's consolidated net profit jumped 83.71% to Rs 81.1 crore on a 49.2% rise in net sales to Rs 1739.7 crore in Q3 September 2019 over Q3 September 2018.

The company reported product optimization, backward integration and innovation as key highlights of September quarter.

EBITDA jumped 54.2% to Rs 325.7 crore on YoY basis. EBITDA margins expanded 60 basis points during the quarter to 18.7% on account of operating leverage in the business. Gross margins improved by 223 bps during the quarter due to lower PET prices in India, lower sugar prices in Zimbabwe in USD terms and change in product mix.

Commenting on company's Q3 performance, Ravi Jaipuria, Chairman - Varun Beverages said, "We have reported a robust performance in Q3 2019, delivering a top line growth of 49.2% and a PAT growth of 83.7%. The results were supported by strong volume growth of 60.4%. Encouragingly, our India business has delivered an organic volume growth of 17.5% and our international territories have registered a 27% growth led by exceptional performance in underpenetrated territories acquired in 2017 and early 2018. Moreover, our key markets like Morocco, Zimbabwe, Nepal and Sri Lanka have also reported double digit growth in the current quarter."

Shares of Varun Beverages were trading 0.91% higher at Rs 626.20. The stock trades near its 52-week high of Rs 683.15 registered on 29 July 2019.

Varun Beverages is one of the largest franchisee of PepsiCo in the world (outside USA). The company produces and distributes a wide range of carbonated softdrinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold undertrade marks owned by PepsiCo.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, November 04 2019. 13:20 IST