Pepsi India bottler Varun Beverages misses Q2 view on higher expenses

Varun Beverages

30/07/2024 08:14

BENGALURU, July 30 (Reuters) - Pepsi India bottler Varun
Beverages  VARB.NS  just missed analyst expectations for second
quarter profit on Tuesday, dragged by higher raw material
expenses despite healthy sales.
    Shares of Varun Beverages, which produces and bottles
popular beverages such as Mirinda, Mountain Dew and Slice, were
down 5.4% at 1595 rupees as of 6:40 a.m. GMT, and is top loser
in the fast-moving consumer goods index  .NIFTYFMCG .
    The company, one of PepsiCo's  PEP.O  largest franchisees
outside the United States, said its consolidated net profit rose
about 26% to 12.53 billion rupees ($149.65 million) in the June
quarter, marginally missing analysts' estimate of 12.59 billion
rupees, according to LSEG data. 
    The company's expenses surged nearly 29%, primarily due to
higher costs of ingredients like sugar, flavorings, carbonated
water, packaging materials and other manufacturing inputs.
    Gurugram-based Varun Beverages, which operates in six
countries, said its revenue from operations rose nearly 29% to
73.34 billion rupees in the second quarter.
    India sweltered under unprecedented summer heat that
extended into June, lifting demand for cold beverages including
soft drinks and lassi.
        Varun Beverages also approved an interim dividend of
1.25 rupees per share and recommended split of existing equity
shares.
    
  


($1 = 83.7300 Indian rupees)

 (Reporting by Yagnoseni Das in Bengaluru; Editing by Subhranshu
Sahu)
 ((Yagnoseni.Das@thomsonreuters.com; +91 6001289066;))