Major dividend declaration from a leading beverage company creates buzz among shareholders
It has a 1-year return of -6.5 per cent, a 3-year return of 320 per cent and a PE ratio of 67.
Varun Beverages Limited has informed the exchanges about the declaration of a final dividend of Rs 0.50 per equity share for the period up to December 31, 2024. The Board of Directors has fixed April 4, 2025, as the record date to determine the entitlement of the dividend. This decision was made after the recommendation of the Board in February 2025. The dividend shall be paid to the shareholders whose names appear on the company's register or in the list of beneficial owners maintained by the depositories on the record date. The approval of this dividend is to be taken at the company's 30th Annual General Meeting to be held on April 3, 2025, and the payment is to be made from April 7, 2025. This is not a one-off announcement by Varun Beverages but is part of its ongoing efforts to reward its shareholders and is a result of the company's strong financial position.
Varun Beverages Ltd is a leading soft-beverage producer and distributor, and it is one of the biggest franchises of PepsiCo Inc. worldwide. The company supplies and markets carbonated and still beverages, as well as packaged water, all under PepsiCo trademarks. Some of the famous brands that the company deals with are Pepsi, Tropicana, and Aquafina. Varun Beverages has franchise rights in 10 countries and distribution rights in four countries; India is the biggest market, accounting for approximately 90 per cent of revenues in FY24.
The company has a strong distribution network with 36 manufacturing facilities in India and 12 abroad, two bottling plants in Nigeria, one in South Africa, one in Sri Lanka, and two in the Dominic Republic. The company has more than 130 depots and over 2,500 vehicles to support these facilities. It has also set up new production units in Maharashtra, Uttar Pradesh and Odisha, and has acquired assets in South Africa. The company is also engaged in backward integration and PET bottle recycling to increase the sustainability and effectiveness of its operations.
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As of March 25, 2025, the share price of Varun Beverages Limited is Rs. 525.65. The company's stock has a 52-week high of Rs. 670.34 and a low of Rs. 435.45. Varun Beverages Limited is a company whose stock trades on the BSE and has a market capital of over Rs 1,70,000 crore. It has a 1-year return of -6.5 per cent, a 3-year return of 320 per cent and a PE ratio of 67.
Disclaimer: The article is for informational purposes only and not investment advice.