Varun Beverages Ltd, the second-largest franchisee of PepsiCo, released its third quarter earnings with profit at Rs 501.07 crore, up 31.5 per cent in comparison to Rs 381.04 crore during the same period last year. It posted revenue from operations for the quarter ended September 2023 at Rs 3937.76 crore, up 21.2 per cent as against Rs 3248.31 crore during the corresponding quarter of last year, driven by an increase in realization per case primarily in international markets. The company EBITDA stood at Rs 883 crore, up 48 per cent on-year. The company stated that the PAT increase during Q3 CY2023 was driven by growth in revenue from operations and improvement in margins.
The company’s consolidated sales volume grew by 15.4 per cent to 220 million cases in Q3 CY2023 from 190 million cases in Q3 CY2022 led by double digit growth in both Indian (14.8 per cent growth) and International (17.5 per cent growth) markets. Volume growth in India bounced back strongly after the unseasonal rains in Q2 CY2023, it said.
Net realization per case, meanwhile, increased by 5.6 per cent to Rs 176.3 driven by an increase in realization per case primarily in International markets.
“Demonstrating remarkable resilience, our consolidated sales volumes registered a solid growth of 15 per cent making a strong comeback following the unseasonal rains in Q2 CY2023 in India. Both our Indian and international markets contributed to this achievement with a healthy double-digit growth. We have achieved notable progress on the operational front by making significant investments to develop both greenfield and brownfield manufacturing facilities throughout India,” said Ravi Jaipuria, Chairman, Varun Beverages Limited.
“In addition, our greenfield facility in DRC is progressing well and is slated to be commissioned in the upcoming months. These strategic efforts are tailored to meet the rising consumption and to capture untapped market opportunities. As part of our commitment to diversifying and enhancing our portfolio, we are also enhancing our capacity for juices and value-added dairy beverages to align with evolving consumer demands,” he added.
As part of its long-term vision and in line with PepsiCo’s global PEP+ objectives, Varun Beverages remain committed to sustainability and environmental stewardship. “We are making investments that emphasize using green energy as well as reuse of PET which will be instrumental in mitigating environmental impact. These endeavors are aligned with our pledge to the environment and reflect our ambition to nurture a greener future,” said Ravi Jaipuria.
The Company, on 16 October 2023, acquired 5.03 per cent shareholding in Lunarmech Technologies Private Limited for a purchase consideration of Rs 100 million. Post acquisition, the Company is holding 60.07 per cent of the effective equity share capital of Lunarmech Technologies Private Limited.
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 soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. PepsiCo CSD brands produced and sold by VBL include Pepsi, Pepsi Black, Mountain Dew, Sting, Seven-Up, Mirinda, Seven-Up Nimbooz Masala Soda and Evervess. PepsiCo NCB brands produced and sold by the company include Slice, Tropicana Juices (100% and Delight), Seven-Up Nimbooz, Gatorade as well as packaged drinking water under the brand Aquafina.