Hindustan Coca-Cola Beverages FY23 net profit doubles to Rs 809 crore

Hindustan Coca-Cola Beverages (HCCB) Ltd, the bottling arm of beverage major Coca-Cola in India, net profit jumped two-fold to Rs 809.32 crore for FY23, according to data accessed by business intelligence platform Tofler.

The company, which operates 16 factories spread across India, recorded a 41.51 per cent rise in its revenue from operation to Rs 12,735.12 crore for FY23, it said in a filing to the Registrar of Companies.

In the preceding financial year (FY22), HCCB's net profit was Rs 377.14 crore, while its revenue from operations stood at Rs 8,999.30 crore. However, other income of HCCB in FY23 fell 29.48 per cent to Rs 105.27 crore.

Its total income for FY23 was Rs 12,840.39 crore, up 40.35 per cent. Its total income was Rs 9,148.59 crore in FY22. HCCB's operating expenses rose 39.79 per cent to Rs 11,191.26 crore for the financial year ended March 2023.

"After two consecutive years of Covid-related disruptions and business impact, your company has delivered an impressive performance for the Financial Year 2022-23," said HCCB. The company kept focus "laser-sharp" on execution, expanding market reach and protecting our business model, it added.

HCCB manufactures and sells 60 different products across 7 categories. Its products include beverages products like Coca-Cola, Thums Up, Sprite, Minute Maid, Maaza, SmartWater, Kinley, Limca, and Fanta.

"Your company strongly believes in the long-term prospects of the category, and hence, has continued to invest and accordingly has made an additional investment of Rs 1304.64 crore in property plant and equipment to build HCCB into a Total Beverage Company," it said.

The Indian economy faced multi-dimensional challenges in the short term, it remains one of the most dynamic major economies in the world with immense headroom for growth.

A favourable demographic profile, rapid urbanisation and increasing affluence represent some of the key structural drivers of growth of the Indian economy, it said.

It "responded with agility and speed, adapting to the emergent consumer needs. To expand consumers into entry pack segments like 150 ml Tetra, 200 ml RGB as well as 250 ml PET, it expanded footprints by strategic investments in this segment through new lines, glass bottles as well as market execution," said HCCB.

Over the future outlook, it said the long-term outlook for Beverage Business in India is very positive.

The structural drivers of long-term growth like rising disposable incomes and consumer awareness, low levels of penetration of consumer goods, favourable demographics, increasing urbanisation and growing preference for trusted brands are firmly in place.

HCCB "will continue to focus on the new opportunities like E-Commerce, Grocery, Pharmacy etc. To grow organically and inorganically in line with its vision and mission".

The company will also continue to invest in capabilities in line with market demand and innovation for scaling up the manufacturing capacities and expansion of chilling equipment capacity.

Catch the latest stock market updates here. For all other news related to business, politics, tech, sports, and auto, visit Zeebiz.com.