Varun Beverages Q4 earnings: Net profit rises 40%, board announces dividend

Pepsico bottler Varun Beverages reported a 40.3% rise in net profit for the December 2024 quarter. Net profit climbed to Rs 185.1 crore in Q4 against Rs 131.9 crore in the December 2023 quarter. Revenue from operations in Q4 rose 40.3% to Rs 3818 crore against Rs 2731 crore in the corresponding period of the previous fiscal. EBITDA rose 38.7% in Q4 to Rs 580 crore from Rs 418 crore in the Q4 of previous fiscal. The board also cleared a final dividend of Rs 0./50 per share.   

In the current session, Varun Beverages stock slipped 2.45% to Rs 540.05 on BSE. A total of 3.02 lakh shares of the firm changed hands, amounting to a turnover of Rs 16.42 crore. Market cap of the firm fell to Rs 1.82 lakh crore.

"Final dividend of Rs 0.50 (Fifty Paisa only) per Equity Share of the nominal value of Rs 2/- (Rupees Two only) each for the Financial Year ended December 31, 2024 to the Equity Shareholders of the Company on a Record Date to be fixed by the Board of Directors of the Company," said Varun Beverages.  

Ravi Jaipuria, Chairman – Varun Beverages said, "India volumes grew 11.4%, reflecting the strength of our distribution network and operational execution. Consolidated volumes increased by 23.2%, largely led by new territories resulting in consolidated revenues increase by 24.7%, EBITDA growth of 30.5%, and PAT growth of 25.3% for the year. We are progressing well in South Africa as we grew the sales volumes by 12.5% in the very first year of operations. We are consciously reducing our reliance on modern trade channel and enhancing our distribution network in general trade. As an enabler, we have placed more visi-coolers in the SA market in a single year than what was cumulatively placed till date by previous operators. We are working on plans for backward integration in the territory."

Total expenses climbed 39.8% to Rs 3478.6 crore in Q4 against Rs 2,489 crore in the corresponding quarter of the previous fiscal. The company has become net debt free through prepayment of debts by using the proceeds from the QIP issue, said Varun Beverages. 

Varun Beverages is a beverage company. It operates franchisee of PepsiCo. The company produces and distributes a 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.