Updated April 30th 2025, 14:06 IST
Varun Beverages Q4 Results 2025: PepsiCo Bottler, Varun Beverages Limited, has reported strong financial performance for the first quarter ended March 31, 2025, with a notable 28.9% year-on-year growth in revenue from operations, which reached Rs 5,566.9 crore, up from Rs 4,317.3 crore in Q1 CY2024.
The company reported a consolidated net profit of Rs 731.30 crore, marking a 33.45% YoY increase.
The payment of an interim dividend of Rs 0.50 (Fifty Paisa only) per equity share for the financial year 2025 on the total issued, subscribed and paid-up 338,18,65,692 equity shares of the nominal value of Rs 2 each.
The company's sales volume surged by 30.1%, totalling 312.4 million cases compared to 240.2 million cases in the same period last year, driven by strong organic growth in India (up 15.5%) and inorganic contributions from South Africa and the Democratic Republic of Congo (DRC).
Net realisation per case saw a 1.8% increase in India, while remaining flat in international markets. However, at the consolidated level, net realisation declined by 0.9% due to lower prices for owned brands in South Africa.
Gross margins stood at 54.6%, down 171 basis points, mainly due to the relatively lower margin profile of owned brands in South Africa and a higher mix of carbonated soft drinks (CSD) in India.
The company's EBITDA grew by 27.8%, reaching Rs 1,263.9 crore, up from Rs 988.8 crore in Q1 CY2024, with India’s EBITDA margins improving by 111 basis points due to operational efficiencies.
However, at the consolidated level, EBITDA margins decreased slightly by 20 basis points due to the lower profitability in South Africa, where margins stood at 14.4%. Profit After Tax (PAT) saw a significant rise of 33.5%, reaching Rs 731.4 crore, compared to Rs 547.9 crore in the same quarter last year, driven by strong volume growth and lower finance costs.
Depreciation increased by 45.3% due to the commissioning of new plants in Supa, Gorakhpur, and Khordha, as well as the consolidation of South Africa and DRC.
The company also benefited from negligible finance costs in India following the repayment of debt using QIP proceeds and earned interest income of Rs 10.8 crore.
In international markets, the finance cost was mainly attributed to South Africa, which also included lease rentals of Rs 8.6 crore as per Ind AS 116, reflecting the leased manufacturing facilities.
Published April 30th 2025, 14:06 IST