PepsiCo bottler Varun Beverages on Tuesday posted a 26% year-on-year rise in its consolidated net profit at Rs 1,253 crore in the June quarter. Bloomberg consensus estimates had pegged it at Rs 1,276 crore. The company follows a January-December accounting year.
Consolidated revenue for the second quarter came in at Rs 7,334 crore, up 28.7% y-o-y, led by India volumes which grew nearly 23% versus last year, thanks to an extended heat wave across the country. International volumes, however, were almost flat due to a portfolio transition in Zimbabwe, a key market, the company said.
Consolidated sales volume grew 28.1% y-o-y to 401.6 million cases in the June quarter, which includes 28 million cases from BevCo, a South African bottler acquired by Varun Beverages during the period.
Earnings before interest tax depreciation and amortisation (Ebitda) increased 31.8% y-o-y to Rs 1,991 crore, ahead of Bloomberg consensus estimates of Rs 1,976 crore. Ebitda margin improved by 70 basis points to 27.2% in the June quarter, led by higher gross margins (up 220 bps to 54.7% versus last year).
PepsiCo’s bottling partner also announced a stock split on Tuesday in the ratio of 2:5 along with an interim dividend of Rs 1.25 per share for its shareholders. The stock split is subject to shareholder approval.
“With a strong performance in the key June quarter, we are on track to deliver healthy double-digit growth in this calendar year. India remains a high-demand market with massive growth potential, driven by a growing consuming class and a young population,” Ravi Jaipuria, chairman, Varun Beverages, said.
The stock split, he said, was intended at a wider retail participation in the counter.
Shares of the company fell 6.38% on the BSE on Tuesday to Rs 1,576.45 apiece. The stock had rallied nearly 9% in the last four days.