Varun Beverages Q2 results: Net profit rises 26.2% YoY, revenue up 13.5%

Varun Beverages Ltd on Thursday reported a 26.2 per cent jump in its consolidated net profit to Rs 9,938.11 crore in the quarter that ended on June 30 as compared to Rs 7,874.38 crore in the same quarter last year.

As compared to Rs 4,290.72 crore in the previous quarter that ended on March 31, the profit was up 131.61 per cent.

The company's revenue from operations was up 13.5 per cent to Rs 56,997.34 crore from Rs 50,175.75 crore in the June quarter last year.

Consolidated sales volumes grew by 4.6 per cent in Q2CY2023 to 314 million cases compared to 300 million cases in Q2CY2022, led by robust growth in international markets. Sales volume growth in  India got affected due to abnormally high unseasonal rains throughout the quarter.

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Earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased by 20.8 per cent to Rs 1,511 crore from Rs 1,250.62 crore. Ebitda margins improved by 169 bps to 26.9 per cent in Q2CY2023 driven by higher gross margins and operational efficiencies.

Commenting on the performance Ravi Jaipuria, Chairman, Varun Beverages Limited said, “We have delivered a resilient performance in the quarter, despite facing a soft demand environment in India due to abnormally high unseasonal rains throughout the quarter. Our consolidated revenue grew by 13.3 per cent during the quarter, with our international territories showing strong momentum. Furthermore, sales volume growth and improvement in realisation per case, contributed to a 20.8 per cent and 25.4 per cent improvement in our Ebitda and PAT performance during Q1, respectively.