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What is the story about?
PepsiCo's second-largest bottling partner, Varun Beverages Ltd. reported its December quarter results on Tuesday, February 3, which were higher on a year-on-year basis, barring operating margins.
Net profit for the period grew by 36% from the same quarter last year to ₹251.7 crore from ₹185 crore earlier. Revenue for the period stood at ₹4,334.7 crore from ₹3,817.6 crore last year, implying a growth of 13.5%.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter grew by 10.2% to ₹639 crore from ₹580 crore earlier, while margins narrowed by 150 basis points to 14.7% from 15.2% year-on-year.
In its investor presentation, Varun Beverages Chairman Ravi Jaipuria said that domestic volumes grew by 10.5% year-on-year during the fourth quarter, due to the wide distribution network and a strong brand portfolio. Full-year sales volume growth stood at 8%, impacted by unprecedented heavy rainfall.
"The greenfield plants and backward integration facilities commissioned during the year are progressively stabilizing and are expected to support higher volumes and operating leverage in the upcoming season," Jaipuria said, adding that the company has three manufacturing facilities including backward integration which will significantly enhance its manufacturing footprint and route-to-market capabilities in Africa’s largest soft drinks market, while offering meaningful synergies with our existing operations.
Varun Beverages' board has also approved a final dividend of ₹0.5 per share.
Shares of Varun Beverages have cooled off from the day's high, currently trading 2.8% higher at ₹479.3. The stock is down 19% over the last 12 months.
Net profit for the period grew by 36% from the same quarter last year to ₹251.7 crore from ₹185 crore earlier. Revenue for the period stood at ₹4,334.7 crore from ₹3,817.6 crore last year, implying a growth of 13.5%.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter grew by 10.2% to ₹639 crore from ₹580 crore earlier, while margins narrowed by 150 basis points to 14.7% from 15.2% year-on-year.
In its investor presentation, Varun Beverages Chairman Ravi Jaipuria said that domestic volumes grew by 10.5% year-on-year during the fourth quarter, due to the wide distribution network and a strong brand portfolio. Full-year sales volume growth stood at 8%, impacted by unprecedented heavy rainfall.
"The greenfield plants and backward integration facilities commissioned during the year are progressively stabilizing and are expected to support higher volumes and operating leverage in the upcoming season," Jaipuria said, adding that the company has three manufacturing facilities including backward integration which will significantly enhance its manufacturing footprint and route-to-market capabilities in Africa’s largest soft drinks market, while offering meaningful synergies with our existing operations.
Varun Beverages' board has also approved a final dividend of ₹0.5 per share.
Shares of Varun Beverages have cooled off from the day's high, currently trading 2.8% higher at ₹479.3. The stock is down 19% over the last 12 months.
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