Varun Beverages Q4 Results: Revenue Jumps 38%, Margin Steady at 15.7%
Varun Beverages Ltd., a key bottling partner of PepsiCo Ltd., has released its December quarter results, showcasing substantial revenue growth and consistent profitability. The company follows a calendar year format for reporting earnings.
Key Highlights of Q4 2024 Results
- Revenue: Increased by 38% year-on-year to ₹3,689 crore.
- Net Profit: Surged by 40% to ₹185 crore.
- EBITDA: Rose by 39% to ₹580 crore.
- EBITDA Margin: Remained flat at 15.7%.
Dividend Announcement
Varun Beverages has recommended a final dividend of ₹0.50 per equity share for the financial year ended December 31, 2024. The record date for the dividend will be determined by the company's Board of Directors in due course.
Volume Growth
The company experienced strong volume growth, with:
- India Volumes: Growing by 11.4%.
- Consolidated Volumes: Rising by 23.2%, primarily driven by expansion into new territories.
Strategic Expansion and Acquisitions
Varun Beverages has been actively expanding its geographical presence and product portfolio:
- New Territories: Entered South Africa and secured distribution rights in Namibia, Botswana, Mozambique, and Madagascar.
- New Country: Commenced greenfield operations in the Democratic Republic of Congo (DRC).
- Acquisitions: Entered into a share purchase agreement to acquire PepsiCo’s business in Tanzania and Ghana, pending regulatory approvals.
- Snacks Business: Forayed into the snacks business with PepsiCo in Morocco, Zimbabwe, and Zambia.
Management Commentary
"We are pleased to conclude CY2024 on a strong note through adding geographical presence into new territories...The growth has been driven by organic volume growth and improved product mix," said Ravi Jaipuria, Chairman – Varun Beverages.
Capital Raising
During the quarter, Varun Beverages successfully raised ₹7,500 crore through a Qualified Institutional Placement (QIP).
Market Reaction
Following the earnings announcement, shares of Varun Beverages Ltd. are trading nearly 2% lower at ₹543.75. The stock is down 16% so far in 2025.
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