Varun Beverages Ltd. reported higher consolidated revenue and net profit for the quarter ended June, beating Bloomberg estimates on both counts, while operating margin fell short of expectations.
Consolidated net profit rose 15.5% year-on-year to Rs 1,521 crore in the second quarter from Rs 1,317 crore a year earlier, according to its notification to the exchanges. The bottom line was ahead of the Bloomberg consensus estimate of Rs 1,440 crore. Revenue increased 20.4% to Rs 8,451 crore from Rs 7,019 crore, exceeding the estimate of Rs 8,231 crore.
Varun Beverages (Q2, Consolidated YoY)
Revenue up 20.4% to Rs 8,451 crore versus Rs 7,019 crore. (Bloomberg Estimate: Rs 8,231 crore)
Ebitda up 17.2% to Rs 2,343 crore versus Rs 1,999 crore. (Estimate: Rs 2,430 crore)
Margin at 27.7% versus 28.5%. (Estimate: 29.5%)
Net profit up 15.5% to Rs 1,521 crore versus Rs 1,317 crore. (Estimate: Rs 1,440 crore)
Chairman Ravi Jaipuria said consolidated sales volumes increased 19.8% during the quarter, supported by improved realisations that lifted net revenue from operations by 20.4%.
"We are pleased to report a strong performance during this quarter across our markets. Consolidated sales volumes grew by 19.8% and, together with improved realizations, translated into a 20.4% increase in net revenue from operations," Jaipuria said in a separate media statement to the exchanges.
He said India recorded volume growth in the "twenties" from March onwards, except in April, resulting in overall volume growth of 14.4% for the quarter.
"Our expanded manufacturing footprint, extensive distribution network and continued investments in chilling infrastructure continued to drive growth," Jaipuria said.
Jaipuria said the company's international business maintained strong momentum, helped by Twizza in South Africa, which strengthened manufacturing capacity and route-to-market capabilities. He added that the company had also signed an agreement to acquire the business of Devyani Food Industries (Kenya) Ltd. to support expansion in carbonated soft drinks and energy drinks.
The board approved a second interim dividend of 50 paise per equity share for 2026. The company has fixed Aug. 1 as the record date, and the dividend will be paid from Aug. 4.
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