Varun Beverages Q4CY24 Results: Net profit rises 36% YoY to ₹195 cr, revenue jumps 38%

Varun Beverages, one of the largest franchisees of PepsiCo in the world (outside the USA), announced its December quarter and full-year results today, February 10, reporting a 36% year-on-year (YoY) surge in consolidated net profit to ₹195 crore in Q4CY24, compared with ₹143 crore profit in the same period last year.

The consolidated revenue from operations stood at ₹3,688 crore in Q4, up from ₹2,667 crore in the corresponding quarter of the previous fiscal year, reflecting a 38.3% growth. On the operating front, the company reported EBITDA of ₹579 crore, a 38.7% YoY increase, while EBITDA margins remained flat at 15.72%.

On the volume front, India’s volumes grew by 11.4% in CY24, while consolidated volumes increased by 23.2%, largely driven by new territories.

Ravi Jaipuria, Chairman of Varun Beverages Limited, said, "We are progressing well in South Africa, achieving a 12.5% growth in sales volumes in our first year of operations. We are consciously reducing our reliance on the modern trade channel and expanding our distribution network in general trade. To support this, we have placed more visi-coolers in the South African market in a single year than all previous operators combined. We are also working on plans for backward integration in the region."

"Additionally, we have entered into a share purchase agreement to acquire PepsiCo’s business in Tanzania and Ghana, pending regulatory and other approvals. The integration of these acquisitions, along with our operations in South Africa, will strengthen our presence in key international markets. This, coupled with the commissioning of new greenfield facilities in India and the Democratic Republic of the Congo (DRC), will enhance our manufacturing and distribution capabilities, ensuring we are well-positioned to meet growing consumer demand. Furthermore, our entry into the snacks business with PepsiCo in Morocco, Zimbabwe, and Zambia marks an important step in diversifying our portfolio and leveraging synergies with our existing infrastructure," Jaipuria added.

For the full fiscal year, its net revenue from operations grew 24.7% YoY to ₹20,007.65 crore, up from ₹16,042.58 crore in CY2023. Net realisation per case increased by 1.3% to ₹177.9 in CY2024.

EBITDA jumped 30.5% YoY to ₹4,711.07 crore, while the EBITDA margin improved by 105 basis points (bps) to 23.5% in CY2024, driven by higher gross margins.

The company said that this improvement in EBITDA margin came despite the consolidation of the South African market, which has lower margins due to an 80% mix of own brands, and the fixed costs associated with new capex, which have yet to be fully utilised.

Announces final dividend

The company's Board of Directors, in their meeting held on February 10, 2025, approved a final dividend payment of Re 0.50 (Fifty paise only) per equity share of ₹2 face value, subject to approval by equity shareholders at the upcoming Annual General Meeting.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.