Varun Beverages ready to bottle in gains on robust volume growth

Pepsico bottler Varun Beverages (VBL) reported top-line growth of 29 per cent and volume growth of 30 per cent on a year-on-year (Y-o-Y) basis in Q1CY25.

- DEVANGSHU DATTA

Pepsico bottler Varun Beverages (VBL) reported top-line growth of 29 per cent and volume growth of 30 per cent on a year-on-year (Y-o-Y) basis in Q1CY25. However, there was a decline in consolidated realisation due to lower realisation in brands in South Africa.

The company's revenue touched ₹5,680 crore, while gross profit stood at ₹3,151 crore, up 25.5 per cent Y-o-Y with a gross margin of 55.5 per cent, down 161 basis points Y-o-Y. The earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin also dropped by 20 bps on a Y-o-Y basis while Ebitda surged to ₹1,264 crore, up 28 per cent Y-o-Y.

The organic volume growth was 15.5 per cent Y-o-Y apart from the consolidation of South Africa & DRC (Democratic Republic of Congo).

The realisation remained flat Y-o-Y at ₹178 per case. The volume growth was seen across domestic market and international markets. The carbonated soft drinks, juices, water volumes grew 38 per cent, 22 per cent, and 6 per cent respectively Y-o-Y to 234 million cases, 22 million cases, and 56 million cases, respectively.