640 Per Cent Returns: Multibagger Beverages Bottler Posts 40 Per Cent PAT Growth, Sales Up 40 Per Cent
The company’s consolidated net profit surged 40.2 per cent YoY, reaching Rs 185.14 crore in Q4 CY24, compared to Rs 131.97 crore in the same period last year.
Varun Beverages Ltd (VBL), one of the world’s largest franchisees of PepsiCo, reported robust financial performance for the quarter ended December 31, 2024, driven by strong volume growth and expansion across international markets.
Financial Performance
The company’s consolidated net profit surged 40.2 per cent YoY, reaching Rs 185.14 crore in Q4 CY24, compared to Rs 131.97 crore in the same period last year.
Revenue from operations saw an impressive 39.78 per cent growth, climbing to Rs 3,817.61 crore, compared to Rs 2,730.98 crore in the corresponding quarter of CY23.
The EBITDA rose 39 per cent YoY to Rs 580 crore, up from Rs 418 crore in the same period last year, while the EBITDA margin remained stable at 15.7 per cent.
The Board of Directors declared a dividend of Rs 0.50 per share, subject to shareholder approval in the upcoming Annual General Meeting (AGM). The record date for the dividend has yet to be finalized.
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Key Business Highlights
- Volume Growth: India volumes increased by 11.4 per cent, while consolidated volumes grew 23.2 per cent.
- International Expansion: Sales in South Africa grew 12.5 per cent in the company's first year of operations.
- Acquisitions: The company signed a share purchase agreement to acquire PepsiCo’s businesses in Tanzania and Ghana.
- Capex Initiatives: VBL commissioned three new greenfield production plants in Maharashtra (Supa), Uttar Pradesh (Gorakhpur), and Odisha (Khordha) during CY24.
- Backward Integration Expansion: New integration facilities were set up at Guwahati in India and at Morocco, Zambia, and Zimbabwe in the international market.
- Fundraising: The company raised Rs 7,500 crore via a Qualified Institutional Placement (QIP) during the quarter.
Stock Price Performance
Varun Beverages' stock declined 0.71 per cent over the past year, underperforming the Nifty 50, which gained 7.69 per cent in the same period. However, over the past five years, the stock has delivered 638 per cent multibagger returns.
VBL currently has a market capitalization of Rs 1,87,336 crore.
About the Company
Varun Beverages Ltd is one of the largest PepsiCo franchisees globally (outside the USA). The company is engaged in the production and distribution of a wide range of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including packaged drinking water, under PepsiCo-owned trademarks.
Disclaimer: This article is for informational purposes only and not investment advice.