Varun Beverages Q2 Results: PAT jumps 26% YoY to Rs 1,262 crore, revenue up 28%
Varun Beverages reported a 26% year-on-year (YoY) increase in its Q2 CY24 profit after tax (PAT), reaching Rs 1,262 crore. Revenue from operations stood at Rs 7,197 crore, up 28% YoY.
In the corresponding quarter of the previous year, the company's revenue was Rs 5,611.4 crore. For the half-year ending June 2024, revenue showed a 21% YoY growth.
The company’s EBITDA came in higher by 32% at Rs 1,991 crore for the second quarter of the calendar year 2024.
Varun Beverages' consolidated sales volume grew by 28.1% to 40.16 crore cases in Q2 CY2024 from 31.35 crore cases in Q2 CY2023, including 2.8 crore cases from BevCo during the quarter.
About 46% of the company’s consolidated sales volumes came from low-sugar or no-sugar products.
The gross margins also improved by 222 bps to 54.7% from 52.5% during Q2 CY2024 primarily due to timely procurement and storage of PET chips to avail pricing benefits as well as the focus on reducing sugar content and lightweight packaging.
“We are excited to announce further expansion in our partnership with PepsiCo, having entered into an Exclusive Snacks Franchising Appointment to manufacture, distribute, and sell «Simba Munchiez» in Zimbabwe by October 2025 and in Zambia by April 2026. This follows our recent announcement to manufacture and package Cheetos in Morocco by May 2025. These agreements complement our existing distribution of PepsiCo’s portfolio, marking another significant step forward in our strong, symbiotic partnership,” said Ravi Jaipuria, Chairman, Varun Beverages
