Varun Beverages appears set for volume growth as consumer firms struggle

Gains expected on the back of rising out-of-home consumption after two years of sluggish performance

As most consumer majors struggle to improve volumes in the March quarter due to price, PepsiCo franchise Varun Beverages (Varun) seems an outlier.

Varun’s volume growth in Q4FY22 at 10 per cent—the sector growth is in lower single digits--is the highest in the consumer space. Its revenue growth of just under 14 per cent is the second highest (sector average at 7.9 per cent), according to IIFL Securities. Three- year compounded annual growth rate of revenues at 22 per cent is also the highest across the FMCG universe, believe analysts.

The volume gains are expected on the back of rising