The revenue from operations for the reported quarter stood at Rs 4,398 crore which was up by 11.2% YoY over Rs 3952.60 crore reported by the company in the corresponding quarter of the last financial year.
The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) for the quarter under review rose 24% YoY to Rs 989 crore.
Total sales volume grew by 7.2% to 24 crore cases in Q1 CY2024 from 22.41 crore cases in Q1 CY2023 and the company managed to grow its presence in the India territory by 4.4% and international markets by 21.9% in the reported quarter despite delay in the Holi festival by 17 days resulting in delayed seasonality cycle, the company filing said.
EBITDA margin improved by 240 bps to 22.9% in Q1 CY2024, led by higher gross margins and increased realization. This improvement is despite the rise in fixed costs associated with the acquisition of new territories and commissioning of new greenfield plants for the season, the company filing said.The company’s gross margins improved by 385 bps to 56.3% Q1 CY2024 from 52.4% in Q1CY2023 primarily due to reduced PET prices as well as the focus on reducing sugar content and light-weighting of packaging. Approximately 46% of our consolidated sales volumes come from low sugar/No sugar products.Net realisation per case increased by 3.5% in Q1 CY2024 to Rs 179.7 on account of improving product mix in India and higher contribution of international markets which have higher realisation per case. The earnings were announced during market hours and the stock was trading down by Rs 5.15 or 0.35% on the NSE at Rs 1,458.15 around 12:40 pm.
Varun Beverages own one of the largest franchisees of PepsiCo in the world outside USA and produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo.