India volumes declined by 7.1%, while international volumes grew by 15.1% (South Africa growing at 16.1%), partially offsetting the overall decline.
Revenue for the quarter rose by 2.5% from the year-ago quarter to ₹7,017.4 crore.Net profit also increased by 5% to ₹1,317 crore from ₹1,253 crore during the same period last year. PAT was driven by operational efficiencies and lower finance cost.
Varun Beverages’ Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) came flat at ₹1,999.6 crore.Margin expanded by 80 basis points to 28.5% from 27.7% during the same quarter last year, in-spite of increase in fixed overheads due to new capacity being commissioned at four greenfield plants in India, which all are yet to yield incremental volumes.
“In-spite of unusually early onset of monsoon rains in the peak summer months in India, we could keep our realizations per case and EBITDA margins intact. Due to growth in international markets supported by strong positive currency movement in Africa territories, Company ended the quarter with a positive PAT, in-spite of 3% decline in consolidated sales volumes,” said Varun Beverages Chairman Ravi Jaipuria.
Although unseasonal rains have impacted performance during the quarter, the company has successfully navigated such challenges in the past and emerged stronger, the Chairman said.
With robust capacities now operational, an expanding product portfolio, and a sharply focused distribution network, Varun Beverages is well-positioned to capture emerging opportunities and drive sustainable, long-term value creation for all stakeholders.
Shares of Varun Beverages have recovered from the lows of the day post the earnings announcement, currently trading 1.71% higher at ₹495.05.