Varun Beverages Q1 Results: PAT rises 35.2% YoY to ₹726.4 crore; revenue up 29%

Varun Beverages Q1 Results: Varun Beverages Ltd reported a consolidated net profit of ₹726.4 crore during the January to March quarter, which on a year-on-year basis, was a growth of 35.2%. The company follows a January-December calendar year format. The same stood at ₹537.2 crore in the corresponding period of the last financial year and the same has increased by 29%.

The company's consolidated revenue from operations grew by 29.2% YoY to Rs. 5,680 crore in Q1 CY2025 as compared to ₹4398 crore in Q1 CY2024.

The company announced a consolidated sales volume increase of 30.1% compared to the previous year’s quarter, reaching 312.4 million cases. This growth was fueled by an organic volume increase of 15.5% in India, along with additional volume contributions from South Africa and the Democratic Republic of Congo, said the company in an exchange filing.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 27.8% compared to the same period last year, reaching ₹1,264 crore, although margins contracted by 20 basis points to 22.7%.

The company experienced a 3.5% increase in revenue per case during the quarter compared to the same period last year, attributed to a better product mix in India and greater contributions from international markets, according to the company’s press release.

Varun Beverages announced it is making efforts to lower the sugar content in its offerings. Almost 46% of the company’s total sales volume consists of no sugar or low sugar products.

Q1 Company Updates

Varun Beverages has initiated the establishment of three new greenfield plants in Maharashtra, Uttar Pradesh, and Odisha, with capital expenditures of ₹1,000 crore, ₹1,100 crore, and ₹700 crore respectively, to cater to the increasing demand for beverages and to bolster its long-term growth plans.

In the latest quarter, Varun Beverages successfully finalized the strategic acquisition of The Beverage Company (BevCo) located in South Africa.

Varun Beverages Morocco SA, a fully-owned subsidiary, has signed an exclusive agreement for snacks to produce and package Cheetos in Morocco by May 2025.

Interim Dividend

The company's board declared an interim dividend of ₹0.50 per share and set the record date for this dividend on May 9, 2025.

“The payment of interim dividend of ^0.50 (Fifty Paisa only) per Equity Share for the Financial Year 2025 on the total issued, subscribed and paid-up 338,18,65,692 Equity Shares of the nominal value of <2/- each. The interim dividend will be paid on and from Friday, May 9, 2025,” said the company.

Varun Beverages share price today

Varun Beverages share price post Q1 results was trading 0.18% lower at ₹528 apiece on the BSE. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, amidst the result announcement Varun Beverages share prices have seen volatile move in today's session, Overall the stock is trading in a range, with 500 acting as support and 550 acting as resistance, the next directional move would be seen only on a range breakout beyond the mentioned levels.

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