Varun Beverages Q2 Results: Reports marginal profit growth as domestic volumes slip; second interim dividend declared

Varun Beverages, one of the largest franchisees of PepsiCo globally (outside the USA), announced its June quarter results on July 29, reporting a 3% decline in consolidated sales volumes to 389.7 million cases in Q2 CY25, down from 401.6 million cases a year earlier, impacted by the unusually early onset of monsoon rains during the peak summer months in India.

Indian volumes fell 7.1%, while international volumes grew 15.1%, led by a 16.1% increase in South Africa, partially offsetting the overall decline. Net realization per case at the consolidated level improved 0.5%, driven by a 6.6% improvement in international markets.

Revenue from operations decreased 2.5% YoY to ₹7,017 crore in Q2 CY25, compared to ₹7,196 crore in Q2 CY24. At the operating level, EBITDA rose 0.4% YoY to ₹1,998.8 crore, compared to ₹1,991.2 crore in the same quarter last year.

EBITDA margins expanded by 82 basis points to 28.5%, despite an increase in fixed overheads from newly commissioned capacities at four greenfield plants in India, which are yet to contribute incremental volumes.

At the bottom line, the decline in volumes weighed on profitability. However, operational efficiencies and lower finance costs helped the company post a 5% YoY increase in net profit to ₹1,325 crore in Q2 CY25, compared to ₹1,261 crore in the same period last year.

Commenting on the performance, Mr. Ravi Jaipuria, Chairman of Varun Beverages Limited, said, "Although unseasonal rains have impacted performance during the quarter, we have successfully navigated such challenges in the past and emerged stronger. We continue to strengthen our on-ground execution by adding more visi-coolers and ensuring wider product availability across retail touchpoints."

"With robust capacities now operational, an expanding product portfolio, and a sharply focused distribution network, we are well-positioned to capture emerging opportunities and drive sustainable, long-term value creation for all stakeholders," he further added," he further added.

Announces second interim dividend

The Board of Directors has approved a second interim dividend of 25% of the face value of ₹2, amounting to ₹0.50 per share, resulting in a total cash outflow of approximately ₹169 crore. The company has fixed August 2, 2025, as the record date for determining the entitlement of equity shareholders to receive the second interim dividend.

The company stated that the interim dividend will be paid on or after August 5, 2025, to shareholders whose names appear in the Register of Members or in the list of beneficial owners maintained by the depositories as of August 2, 2025.

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