Varun Beverages Q3FY23 net profit rises by 150 percent

One of the largest franchisees of PepsiCo Varun Beverages reported a 150% year-on-year (YoY) increase in its consolidated profit after tax at INR 81.5 crore for the quarter ended December 31, 2022. The company had reported a net profit of INR 32.5 crore in the same quarter of the previous fiscal year.

The company’s revenue from operations grew by 27.7% YoY to INR 2,214 crore in the December quarter of CY22. Meanwhile, the EBITDA increased by 48.1% to INR 3,07.5 crore in Q4CY22 from INR 207.6 crore in Q4CY21. Its sales volumes grew by 17.8% in the December quarter of the calendar year 2022 to 13.2 crore cases.

Meanwhile, the company’s board has recommended a final dividend of INR 1/share for the financial year ending 31 December 2022.

“The strong recovery in demand post the pandemic and our continued efforts towards expanding the distribution network across markets resulted in a 41% growth in consolidated sales volume. Additionally, we achieved growth in realization per unit through strategic measures such as selective price hikes, rationalized discounts and incentives, and improved product mix. This allowed us to deliver revenue growth of 49% and PAT growth of 108% YoY on a consolidated basis in CY 2022,” Ravi Jaipuria, Chairman of Varun Beverages said.

“Our recent launches in the value-added Dairy segment have also been well-received by consumers, and we are confident that these products will continue to drive growth in the future,” he added.

On a yearly basis, its revenue from operations grew 49.30% YoY to INR 13,173.1 crore in CY2022 as compared to INR 8,823.2 million in CY2021. its sales volume grew by 40.9% in CY2022 to 80.2 crore cases supported by strong performance in India as well as International territories. The PAT of the company increased by 107.8% to INR 1,550.1 crore in CY2022 from INR 746.1 crore in CY2021, driven by high growth in revenue from operations, improvement in margins, and transition to a lower tax rate in India.