Varun Beverages released its financial results for the third quarter (Q3) and the first nine months (9M) of the calendar year 2023.
Q3 CY2023 Financial Performance Highlights:
- Revenue Growth: Varun Beverages reported a significant 21.8% year-on-year (YoY) increase in revenue from operations, net of excise/GST, reaching Rs. 38,705.2 million. This growth was driven by consolidated sales volumes, which increased by 15.4% in Q3 CY2023, totaling 220 million cases, compared to 190 million cases in Q3 CY2022. This growth was observed in both the Indian and international markets.
- Improved Realization: The net realization per case increased by 5.6% to Rs. 176.3, mainly due to an increase in realization per case in international markets.
- EBITDA Growth: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 26.2% to Rs. 8,821.4 million in Q3 CY2023, up from Rs. 6,989.9 million in Q3 CY2022. The company achieved improved gross margins, which increased by 163 basis points (bps) to 55.3% in Q3 CY2023, primarily attributed to softer PET chips prices. EBITDA margins improved by 79 bps to 22.8% in Q3 CY2023 due to higher gross margins and operational efficiencies.
- Profit Growth: The Profit After Tax (PAT) increased by a substantial 30% to Rs. 5,140.6 million in Q3 CY2023, compared to Rs. 3,954.8 million in Q3 CY2022. This growth was driven by increased revenue from operations and improvements in margins.
9M CY2023 Financial Performance Highlights:
- Revenue Growth: Varun Beverages achieved a 22% YoY growth in revenue from operations (net of excise/GST), reaching Rs. 133,748.9 million in the first nine months of CY2023, compared to Rs. 109,589.1 million in the same period in CY2022.
- EBITDA Growth: EBITDA increased by 28.6% to Rs. 31,912.0 million in 9M CY2023, up from Rs. 24,806.0 million in 9M CY2022.
- Profit Growth: The company reported a PAT of Rs. 19,580.5 million in 9M CY2023, reflecting a 33.3% YoY increase from Rs. 14,685.9 million in 9M CY2022.
Mr. Jaipuria expressed satisfaction with the company’s Q3 and 9M CY2023 performance, with a 22% growth in revenue and a 30% increase in PAT year-on-year. He highlighted the company’s resilience, particularly in rebounding from unseasonal rains in Q2 CY2023 in India, which contributed to a solid 15% growth in consolidated sales volumes. This growth was evident in both Indian and international markets.
Mr. Jaipuria company’s significant progress on the operational front, with investments in developing greenfield and brownfield manufacturing facilities across India. Additionally, the upcoming greenfield facility in the Democratic Republic of the Congo (DRC) is progressing well and is expected to be commissioned in the near future. These strategic efforts are aimed at meeting increasing consumer demand and capturing untapped market opportunities.
The company is committed to diversifying and enhancing its portfolio, with a particular focus on increasing capacity for juices and value-added dairy beverages to align with evolving consumer preferences.
He also highlighted the significant growth potential in the Indian beverage market due to the dynamic demographic landscape and evolving consumption patterns. The company’s strategic initiatives are geared toward strengthening its position in the global beverage industry by intensifying its presence in India and expanding into Africa.
| Subscribe To Our Free Newsletter |
