Pepsi India bottler Varun Beverages Q3 profit beats view on strong sales volume

Varun Beverages

06/11/2023 07:13

BENGALURU, Nov 6 (Reuters) - Pepsi India bottler Varun
Beverages  VARB.NS  on Monday reported a better-than-expected
third-quarter profit, aided by higher sales volume and steady
demand.
    Consolidated net profit jumped 31.5% to 5.01 billion rupees
($60.20 million) for the three months ended Sept. 30, compared
with 3.81 billion rupees a year earlier.
    Analysts, on average, had expected a profit of 4.51 billion
rupees, according to LSEG data.
    The Gurugram-based company, with operations across six
countries, is one of PepsiCo's  PEP.O  largest franchisee
outside the U.S., and packages and distributes beverages under
Pepsi, Mirinda and Tropicana labels.
    Varun Beverages reported a 21.2% surge in revenue from
operations to 39.38 billion rupees in the quarter.
    Consolidated sales volume grew by 15.4% to 220 million cases
in the quarter from 190 million cases year ago, led by double-
digit growth in both Indian and international markets, the
company said in a statement. 
    Earnings before interest, taxes, depreciation and
amortisation rose by 26.2% to 8.82 billion rupees in the quarter
helped by higher gross margins, it added.
    However, cost of materials consumed during the quarter rose
11.8% to 16.35 billion rupees.
    Shares of the company, which also sells Aquafina packaged
bottled water, was down 0.4% after the results. The stock has
risen 43.1% so far this year. 
    


($1 = 83.2200 Indian rupees)

 (Reporting by Meenakshi Maidas in Bengaluru; Editing by Rashmi
Aich)
 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))