Varun Beverages Delivers 33.5% PAT Growth in Q1 CY2025 on Strong Volume Surge

Varun Beverages reported strong financial results for Q1 CY2025, with revenue increasing by 28.9% year-on-year (YoY) to ₹55,669.4 million, up from ₹43,173.1 million in Q1 CY2024. The company also saw its consolidated sales volume grow by 30.1%, reaching 312.4 million cases in Q1 CY2025, compared to 240.2 million cases in the same period last year. This growth was driven by a 15.5% increase in volume from India and additional volume contributions from South Africa and the Democratic Republic of Congo (DRC).

Profit and Margins

Net profit for the quarter grew by 33.5% YoY, reaching ₹7,313.6 million, up from ₹5,479.8 million in Q1 CY2024. The increase was attributed to strong volume growth and lower finance costs. EBITDA also rose by 27.8%, reaching ₹12,639.6 million. However, gross margins declined by 171 basis points to 54.6%, largely due to the lower-margin products in South Africa and a higher mix of carbonated soft drinks (CSD) in India.

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Product Mix and Expansion

In Q1 CY2025, the share of low-sugar/no-sugar products in consolidated sales volume increased to 59%. The company also started operations at new greenfield production facilities in Kangra (Himachal Pradesh) and Prayagraj (Uttar Pradesh). Additionally, Varun Beverages expanded its presence in the snack food sector by beginning the distribution and sale of PepsiCo’s snack products in Zimbabwe and Zambia.

Interim Dividend

The Board of Directors declared an interim dividend of ₹0.50 per share (25% of face value). The total cash outflow from this dividend is expected to be around ₹1,691 million.

Key Developments

• New production facilities were commissioned in Kangra and Prayagraj, while backward integration facilities were set up at both locations and in DRC.

• Varun Beverages began distributing PepsiCo’s snack products in Zimbabwe and Zambia starting from February 2025.

• The company’s credit rating was upgraded by CRISIL from AA+/Stable to AAA/Stable.

About Varun Beverages Limited

Varun Beverages Limited is a multinational company based in India that produces, bottles, and distributes beverages. It is the largest bottler of PepsiCo products globally, outside the U.S.

As of April 30, 12:52 PM IST, Varun Beverages share price (NSE: VBL) was trading at ₹528.35, down 0.15%. The stock opened at ₹529.00, touched a high of ₹537.00 and a low of ₹507.10 during the session. The company has a market capitalisation of ₹1.79 lakh crore, a price-to-earnings (P/E) ratio of 66.50, and offers a dividend yield of 0.19%. Its 52-week high is ₹681.12, while the 52-week low stands at ₹419.55.

Conclusion

Varun Beverages delivered strong financial results in Q1 CY2025, with impressive revenue and profit growth. The company’s continued expansion in both India and international markets, along with a strong product portfolio, positions it well for future growth.

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