Varun Beverage net profit doubles to Rs. 40 crore

Varun Beverage reported consolidated net sales of Rs. 1,359.2 crore for the March quarter, up by nearly 24.1 per cent from the corresponding quarter of the previous year. This was mainly on account of increase in overall sales volumes to 90 million-unit cases from 80 in Q1CY18.

Sales mix for the quarter, CSD constituted 71 per cent, Juice 6 per cent and Packaged Drinking water 23 per cent of total sales volumes in Q1 2019.

EBITDA for the quarter surged nearly 26.5 per cent yoy to Rs. 218.4 crore. EBITDA margin for the quarter stood at 16 per cent as against 15.8 per cent in the corresponding quarter of the previous year. The margin improvement was led by benefits realised from the consolidation of sub-territories acquired in 2018.

Notably, the company managed to double its net profit to Rs. 40 crore from Rs. 19.7 crore in Q1CY18.

Varun Beverages Limited is one of the largest franchisees of PepsiCo in the world, outside the US. The company produces and distributes a wide 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.