Pepsi India bottler Varun Beverages tops Q3 profit view on healthy international demand

Varun Beverages

22/10/2024 09:25

Oct 22 (Reuters) - Pepsi India bottler Varun Beverages'
 VARB.NS  third-quarter profit exceeded analysts' expectations
on Tuesday as healthy demand for soda in its international
markets helped outweigh a monsoon-hit domestic market.
    The company's net profit rose nearly 24% to 6.20 billion
rupees ($73.8 million), beating analysts' expectation of 5.76
billion rupees, per LSEG data.
    Higher-than-normal rains throughout the quarter, which
analysts said affected out-of-home beverage consumption in the
country, hurt the firm's domestic volume growth.
    During the three months ending Sept. 30, its India volume
growth came in at 5.7%, as compared to a "double-digit"
percentage jump last year.
    Despite the domestic softness, Varun Beverages said healthy
international demand helped the company post a near 22% rise in
sales volume at 267.5 million cases during the quarter.
    "Our global operations, particularly in Africa, are
positioned to drive further growth as we capitalize on emerging
demand trends and enhance our operational capabilities,"
Chairman Ravi Jaipuria said in a statement.
    The company's revenue from operations rose 25% to nearly 50
billion rupees, which included contributions from South
Africa-based BevCo that Varun Beverages had acquired in the
first half of the year. 
    Varun Beverages also reported a 26.4% rise in expenses, due
to increased spending on raw materials, including sugar,
flavourings, glass bottles, and packaging during the quarter.
    The company's shares reversed course after the results and
climbed 1.5%. Varun Beverages is the top-performing stock in the
broader Nifty FMCG index  .NIFTYFMCG , which is down 0.3%. 

($1 = 84.0730 Indian rupees)

 (Reporting by Yagnoseni Das in Bengaluru; Editing by Eileen
Soreng)
 ((Yagnoseni.Das@thomsonreuters.com;))