PepsiCo bottler reports 4.6 times jump in quarterly net profit, announces dividend
Varun Beverages — which manufactures and bottles PepsiCo drinks — reported a 4.6 times year-on-year jump in net profit to Rs 74.7 crore for the quarter ended December 2022 aided by a sustained rise in demand for packaged beverages from the depths of the pandemic. Varun Beverages shares jumped after the earnings announcement.
Varun Beverages — which bottles PepsiCo drinks — on Monday reported a multifold increase in net profit to Rs 74.7 crore for the quarter ended December 2022, aided by a sustained rise in demand for packaged beverages from the depths of the pandemic. Varun Beverages shares jumped by as much as Rs 77 or 6.6 per cent to Rs 1,238 apiece on BSE after the earnings announcement.
The PepsiCo India bottler had reported a net profit of Rs 16.4 crore for the quarter ended December 2021.
Varun Beverages' revenue grew 27.7 per cent to Rs 2,214 crore compared with the year-ago period, according to a regulatory filing.
“We are pleased to close the year on a strong note with exceptional operational and financial performance reported throughout CY2022. The strong recovery in demand post the pandemic and our continued efforts towards expanding the distribution network across markets resulted in 41 per cent growth in consolidated sales volume," said Ravi Jaipuria, Chairman, Varun Beverages.
The company's margin — a key measure of profitability for businesses — improved by 190 basis points on a year-on-year basis to 13.9 per cent.
"We are excited to share that our energy drink, Sting, had a remarkable year, contributing significantly to both volume and realisation growth. As the product is in an expanding category, we anticipate its strong performance to sustain in the coming year,” Jaipuria added.
The company announced a dividend of Re 1 per share, taking its payout for the year ending March 2023 to Rs 3.5 per share.
Varun Beverages rewarded investors with a return of 26.7 per cent in the quarter ended December 2022, a period in which headline indices Sensex and Nifty50 rose 5.9 per cent each.
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