Hindustan Coca-Cola Beverages (HCCB), the bottling arm of Coca-Cola in India, witnessed a significant upturn in its financial performance for the fiscal year 2023. Data accessed from the business intelligence platform Tofler revealed that HCCB’s net profit more than doubled, soaring to Rs 809.32 crore for FY23. This impressive result followed a 41.51 per cent surge in its revenue from operations, which amounted to Rs 12,735.12 crore for the same fiscal year, as reported in a filing to the Registrar of Companies.
In comparison, during FY22, HCCB had reported a net profit of Rs 377.14 crore and revenue from operations of Rs 8,999.30 crore. Despite these remarkable gains, HCCB did experience a 29.48 per cent decrease in its other income for FY23, which amounted to Rs 105.27 crore.
The company’s total income for FY23 reached Rs 12,840.39 crore, marking a notable increase of 40.35 per cent from the previous fiscal year when it was Rs 9,148.59 crore. The rising operating expenses also reflected the company’s growth, with a 39.79 per cent increase to Rs 11,191.26 crore for the fiscal year ending March 2023.
HCCB attributed its impressive performance to a laser-sharp focus on execution, expanding market reach, and protecting its business model. The company manufactures and sells a diverse range of 60 products across seven categories, including popular beverages like Coca-Cola, Thums Up, Sprite, Minute Maid, Maaza, SmartWater, Kinley, Limca and Fanta.
HCCB expressed its strong belief in the long-term prospects of the beverage category and its commitment to investing in building itself into a Total Beverage Company. They made additional investments of Rs 1,304.64 crore in property, plant, and equipment to support this vision.
Despite facing challenges due to COVID-related disruptions, HCCB displayed agility and adaptability, responding to emerging consumer needs by expanding into entry-level pack segments and making strategic investments. Looking ahead, the company sees a very positive long-term outlook for the beverage business in India, driven by factors like rising disposable incomes, low consumer goods penetration, urbanisation and the preference for trusted brands.
HCCB plans to focus on new opportunities in e-commerce, grocery, pharmacy and more to align with its vision and mission. The company also intends to invest in capabilities, manufacturing capacity and chilling equipment capacity to meet market demands and drive innovation.
