Varun Beverages Reports 36% YoY Profit Growth and 39.78% Revenue Surge in Q3
Business and Industry Overview
Varun Beverages Limited is an Indian multinational company that manufactures, bottles, and distributes beverages. It is the largest bottling company of PepsiCo’s beverages in the world outside the United States. The Company manufactures, distributes, and sells a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo.
Pepsi, Pepsi Black, Mountain Dew, Sting, Seven-Up, Mirinda Orange, Seven-Up Nimbooz Masala Soda, and Evervess are PepsiCo products that is produced and sold by VBL. It has been granted franchisees for various PepsiCo products across 27 States and 7 Union Territories in India (responsible for ~90% beverage sales volume of PepsiCo India). Beginning with its incorporation and early expansion, PepsiCo acquired a 26% stake in 1998. In 2004, Devyani Beverages merged with VBL, further strengthening its operations.VBL has also been granted the franchise for the territories of Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe. Currently, our operations span six countries across the Indian sub-continent and Africa, collectively serving over 1.4 billion customers.
The beverage industry is a very vast industry with various major players in the industry and Pepsi is one of the largest players with 33 % of the total market share. Varun Beverages Limited (VBL) accounts for about 90% of PepsiCo’s beverage sales in India. Revenue in the Beverages Market is projected to reach US$1,389.00m in 2025. The revenue in this industry is expected to show an annual growth rate (CAGR 2025-2029) of 11.90%, resulting in a projected market volume of US$2,178.00m by 2029.
Latest Stock News
Varun Beverages Ltd reported a 36 percent rise in consolidated net profit at ₹195.64 crore for the December quarter of 2024 driven by volume growth and improved margins. The company, which follows the calendar year as its financial year, had posted a net profit of ₹143.76 crore during the October-December period a year ago, according to a regulatory filing from VBL. Revenue from operations was higher at ₹3,817.61 crore during the fourth quarter as against ₹2,730.98 crore in the corresponding period last fiscal. The EBITDA increased by 38.7 percent to ₹579.97 crore from ₹418.29 crore.
Segmental information
It has 3 main business segments in India:
Carbonated soft drinks: It is a major distributor partner of Pepsi products in India which includes products like Pepsi, Pepsi Black, Mountain Dew, Sting, Seven-Up, Mirinda Orange, Seven-Up Nimbooz Masala Soda, and Evervess.
Non-carbonated drinks: Apart from carbonate drinks it also manages the production and distribution of Tropicana Slice but only distributes other Tropicana products like Tropicana 100% and Tropicana Delight in India.
Dairy-based beverages: VBL’s parent company, RJ Corp, has a strong presence in the dairy industry through its subsidiary Devyani Agro Industries, which produces and sells dairy products under the brand Cream Bell in India.
Subsidiary Information
Varun Beverages (Nepal) Private Limited:
• Varun Beverages Lanka (Private) Limited
– Ole Springs Bottlers (Private) Limited (step-down subsidiary)
• Varun Beverages Morocco SA
• Varun Beverages (Zambia) Limited
• Varun Beverages (Zimbabwe) (Private) Limited
• Varun Beverages RDC SAS
• Varun Beverages International DMCC
• Varun Beverages South Africa (Pty) Ltd.:
• VBL Mozambique, SA
• Lunarmech Technologies Private Limited
Associates
• Clean Max Tav Private Limited
• Huoban Energy 7 Private Limited
Joint Venture
• IDVB Recycling Operations Private Limited
Q3 Highlights
- Revenue Growth has increased by 39.78% to ₹ 3,817.61 crore compared to the latest December quarter (from ₹ 2,730.98 crore a year ago).
- EBITDA rose 39% to ₹ 580 crore compared to ₹ 418 crore in the same period last year.
- The board declared a ₹0.50 dividend, subject to shareholder approval in the upcoming AGM, and the record date is yet not decided.
Financial Summary
| Amount in ₹ Cr | Q4 FY23 | Q3 FY24 | FY23 | FY24 |
| Revenue | 2,730.980 | 3,817.61 | 16,043 | 20,008 |
| Expenses | 2,249 | 3,110 | 12,326 | 15,298 |
| EBITDA | 418 | 580 | 3,075.00 | 4,830.00 |
| OPM | 16% | 16% | 23% | 24% |
| Other Income | 9 | 45 | -5 | 121 |
| Net Profit | 144.00 | 196.00 | 2,102 | 2,634 |
| NPM | 5.40 | 5.31 | 13.10 | 13.16 |
| EPS | 0.41 | 0.55 | 6.33 | 7.67 |