Business News/ Markets / Stock Markets/  Varun Beverages Q4FY23 Results: Net profit up 69%; stock split declared

Varun Beverages Ltd, one of PepsiCo's biggest franchisees, said on Tuesday that its consolidated profit after tax for the three months ended March 31, 2023, increased by 69% year over year (YoY) to 429 crore. In the same quarter of the prior fiscal year, the company had reported a net profit of 254 crore.

For the quarter ended March (Q4FY23), the company's revenue from operations surged 38% year-on-year to 3,952.5 crore from 2,867.4 crore in March 2022.

In the March quarter, the company's total expenses increased by about 35% to 3,389 crore, from 2,514 crore in the same quarter of the prior fiscal year.

In a filing with the exchange, the company stated that robust demand throughout India's regions was the primary factor in the sales volume increasing by 24.7% to 22.4 crore cases in Q1 calendar year 2023 from 17.97 crore cases in Q1 calendar year 2022. Domestic volumes rose by28.0%.

The marginal price reductions in raw materials and the improved product mix were primarily accountable for the 89-basis point increase in gross margins to 52.4% from 51.5% in Q1 2023.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 50.3% to 798.04 crore in the first quarter of CY2023, and EBITDA margins grew by 172 basis points to 20.5% as a result of enhanced operational efficiency.

The board has approved stock split in the ratio 1:2. The board of directors of the company, subject to the approval of equity shareholders of the company, considered and approved the sub-division/splitting of existing equity shares of the company from 1 (one) equity share having face value of 10 each fully paid-up into 2 (two) equity shares having face value of 5 each fully paid-up.

Further, a final dividend of Re 1 per equity share with a face value of 10 each has also been approved by the company for the fiscal year that concluded on December 31, 2022.

The company announced that it has boosted capacity at six existing locations in addition to opening a new production plant in Kota, Rajasthan.

Following the Q4FY23 earnings, the shares of the company gained over 1%. However, at 13:57 IST, the stock was trading 1.17% down at 1,1,428.30 per share.

Varun Beverages share price flat ahead of Q4 earnings; board likely to announce stock split


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Updated: 02 May 2023, 12:50 PM IST
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