Varun Beverages Q3 Results: Cons PAT rises 32% YoY on strong sales, EBITDA growth
Varun Beverages on Monday reported robust earnings for the quarter ended September, with the consolidated net profit rising nearly 32% year-on-year (YoY) to Rs 501 crore, on the back of strong topline and operational performance.
Consolidated revenue, net of excise duty, grew by nearly 22% YoY to Rs 3,871 crore, led by a healthy growth in volumes and realisations.
Despite the strong earnings growth, the stock wiped the gains and fell 0.7% to Rs 946.10 due to profit-booking. Ahead of the earnings, the stock had touched a one-month high of Rs 965.70.
Consolidated sales volumes grew by 15.4% in the third quarter of the calendar year to 220 million cases, led by a double-digit growth in both Indian and international markets, the company said.
Varun Beverages, which is PepsiCo’s second-largest franchisee outside the US, follows the calendar year.
Net realization increased by 5.6% to Rs 176.3 per case, driven by an increase in realization per case primarily in the international markets.
Operating profit, calculated as earnings before interest, taxes, depreciation, and amortisation (EBITDA), increased by 26% on year to Rs 882 crore.
Gross margins improved by 163 bps to 55.3% in the quarter, primarily due to the softening of PET chip prices.
