India's Varun Beverages quarterly profit rises on volume growth; packaging costs weigh on margins
India's Varun Beverages quarterly profit rises on volume growth; packaging costs weigh on margins Oct 30 (Reuters) - Varun Beverages VARB.NS reported a 13.8% rise in third-quarter profit on Friday, as higher sales volumes in India and international markets helped offset increased packaging costs.
PepsiCo's PEP.O biggest bottling partner in India reported a consolidated net profit of 8.28 billion rupees ($86.98 million) for the quarter ended September 30, compared to 7.28 billion rupees a year ago.
Here are some key details:
Overall revenue rose 33.3% to 68.16 billion rupees in the third quarter, outpaced by total expenses, which jumped nearly 36%
Gross margin declined by 334 bps to 53.1% during the quarter due to higher packaging material costs, the company said in its earnings statement
Consolidated sales volume grew by 28.7%, driven by volume growth of 22.5% in India and 39.9% in international territories
Varun Beverages is facing intensifying competition in India's ready-to-drink market as established rivals and new entrants expand aggressively across soft drinks, juices and packaged water
Shares fell as much as 4.4% to 396.6 rupees after the results
($1 = 95.1900 Indian rupees)
(Reporting by Mridula Kumar in Bengaluru; Editing by Jochelle Mendonca)
((mridula.kumar@thomsonreuters.com))
Recent news on PepsiCo
See all newsHedge fund Elliott gains less than 2% through September, WSJ reports
India's Varun Beverages quarterly profit rises on volume growth; packaging costs weigh on margins
Food and household brands warn of more price hikes as Iran war costs bite
Food and household brands warn of more price hikes as Iran war costs bite
Coca-Cola lifts profit forecast on international soda demand, flags higher costs (updated)