The company’s net profit rose to Rs 731.36 crore in the January to March quarter (Q1CY25) from Rs 547.98 crore in Q1CY24
Varun Beverages, a PepsiCo franchisee, has marked a healthy improvement in its performance as it registered a 33.46 per cent increase in its profit after tax (net profit) in the first quarter ended 31 March 2025 (Q1CY25). Led by volume growth and lower finance cost, the net profit rose to Rs 731.36 crore in Q1CY25 from Rs 547.98 crore in Q1CY24.
The company’s financial results revealed a 28.9 per cent YoY increase in its revenue from operations (net of excise/gst) as it rose to Rs 5,566.94 crore in Q1CY25 from Rs 4,317.31 crore in the corresponding period of the previous year.
Driven by strong organic volume growth of 15.5 per cent in India and inorganic volume contributions from South Africa and DRC, the consolidated sales volume grew by 30.1 per cent to 312.4 million cases in Q1CY25 from 240.2 million cases in Q1CY24. Net realisation per case increased by 1.8 per cent in India.
“We recently commenced operations at our new greenfield production facilities in Kangra (Himachal Pradesh) and Prayagraj (Uttar Pradesh), significantly enhancing capacity concurrently with the peak summer season. The implementation of the other two greenfield production facilities scheduled for the 2025 season in Bihar and Meghalaya is on track and shall commence commercial production very soon,” highlighted Ravi Jaipuria, Chairman, Varun Beverages.
Due to the higher mix of carbonated soft drinks (CSD) in India and relatively lower margin profile of owned brands in the South African market, gross margins stood at 54.6 per cent, a decline of 171 basis points as compared to Q1CY24. The earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 27.8 per cent in Q1CY25 to Rs 12,639.6 million from Rs 9,887.6 million in Q1CY24.
In line with its dividend policy, the Board of Directors has approved an interim dividend of 25 per cent of face value (Rs 0.50 per share), resulting in a total cash outflow of approximately Rs 169.1 crore. The company highlighted that it sees headroom for growth in India’s beverage market, supported by rising per capita incomes, accelerating urbanisation, expanding electrification, and improving cold-chain infrastructure.
