Varun Beverages posts quarterly profit rise on higher volumes, lower costs

Varun Beverages net profit ​rose 36 per cent to ₹252 crore ($27.87 million) in the quarter ended December 31

India's Varun Beverages reported a higher quarterly profit on Tuesday ‍as higher sales ​volumes and lower borrowing costs supported margins, sending shares up 4.9 per cent in afternoon trade.

The company, one of PepsiCo's biggest bottling partners outside the United States, said net profit ​rose 36 per cent to ₹252 crore ($27.87 million) in the quarter ended December 31.

Consolidated sales volumes rose 10.2 per cent in the reported quarter, helped by improved performance in India during the festive season and continued growth in international markets.

Revenue from operations rose 13.5 per cent year-on-year to ₹4,335 crore in the quarter. Sales volumes in India grew 10.5 per cent, while international markets posted 10 per cent growth, led ‌by Africa.

 

The company said profit growth ​was also supported by lower finance costs and higher other income, including interest income on deposits and favourable currency ‍movements in international markets.

Varun Beverages packages and distributes beverages under Pepsi and Tropicana ‍labels, among ‌others. It ​also sells beverages under ‍its own brands such as "Jive" and "Cream Bell".