Varun Beverages reported a 20.5% YoY sales increase to Rs 2,667.70 crore in the quarter, up from Rs 2,214.24 crore in the corresponding quarter last year. The growth is attributed to increased volumes in both the Indian and international markets.
On Monday, Varun Beverages Ltd announced a 76% year-on-year (YoY) surge in net profit, reaching Rs 143.76 crore for the December quarter. The increase is attributed to revenue growth and enhanced profit margins.
There was a 20.5% year-on-year increase in revenue from operations, reaching Rs 2,667.70 crore for the quarter, compared to Rs 2,214.24 crore in the corresponding quarter last year. This growth is attributed to the expansion of volumes in both the Indian and international markets.
Ebitda for the quarter rose by 36% YoY to Rs 418.29 crore, driven by higher realization, increased gross margins, and enhanced operational efficiencies.
Chairman Ravi Jaipuria stated that despite unusually high unseasonal rains during the peak season, his company concluded 2023 on a strong note. Jaipuria highlighted a healthy double-digit volume growth in both the Indian and international markets.
He added, "In 2023, our consolidated sales volume increased by 13.9%, and the net realization per case increased by 7%. These factors contributed to our notable revenue growth of 21.8% and an impressive PAT growth of 35.6%. Aligning with our strategic objectives, we successfully commissioned multiple greenfield and brownfield facilities across key geographies during the year. This expansion not only strengthened our manufacturing capabilities but also extended our market reach."
Our distribution network and cooling infrastructure have experienced significant growth, reinforcing our market presence. In a notable milestone for our expansion, we are pleased to announce the pending acquisition of The Beverage Company (BevCo), pending regulatory approvals. BevCo holds franchise rights for PepsiCo beverage products in South Africa, Lesotho, and Eswatini, with distribution rights in Namibia and Botswana. This acquisition aligns seamlessly with our strategic objectives, presenting a valuable opportunity to expand our footprint in the African market, known for high demand for soft drinks and favorable demographics. The integration of BevCo into VBL's operations is anticipated to generate substantial synergies in the future.
Moving forward, our strategy is focused on maintaining our robust growth momentum. We will persist in strengthening our market position, both domestically and internationally, and prioritize product categories in line with evolving consumer preferences. Our achievements in CY2023 have established a strong foundation for ongoing success, and we remain confident in our ability to deliver sustainable growth and value for all stakeholders in the years ahead.
