Net revenue growth was supported by robust volume growth and increase in net realization. Net realization increased by 10.4% to Rs 173.7 primarily due to price hike in selected SKUs taken towards the end of base quarter last year and continued improvement in mix of smaller SKUs (250ml).

During Q1 CY23, total sales volumes grew by 24.7% to 224.1 million cases from 179.7 million cases in Q1 CY22, driven by strong demand across regions in India. Domestic volumes grew by 28.0%.

Gross margins improved by 89 bps to 52.4% from 51.5% in Q1 CY23, primarily driven by marginal savings in raw material prices and improved product mix.

EBITDA stood at Rs 798.04 crore, recording a growth of 50.3% on year on year basis while EBITDA margins improved by 172 bps to 20.5% in Q1 CY23, driven by operational efficiencies on the back of strong revenue growth.

Ravi Jaipuria, Chairman, Varun Beverages said, “Our energy drink product has achieved a significant share in our overall mix and has firmly established our leadership position in the category. Our focus now turns towards new performers like value added dairy, sports drinks, and juice segments to sustain the growth momentum.

It gives me immense pleasure to announce, as approved by shareholders in our annual general body meeting, the final dividend of Re 1 per share taking the total dividend payout for the full year to level of Rs 3.5 per share. Furthermore, the board recommended the split of existing equity shares of the company from one equity share having face value of Rs 10 each into two equity shares having face value of Rs 5 each. This is subject to the approval of equity shareholders of the company.

Overall, we are encouraged by our strong start and remain confident about delivering good performance this year. With our robust on-ground execution capabilities, expanding manufacturing capacities, and increasing distribution reach, we believe we are well-positioned to achieve sustainable growth in the medium to long term.”

Meanwhile, the board approved sub-division of existing equity shares of the company from one equity share having face value of Rs 10 each fully paid-up, into two equity shares having face value of Rs 5 each fully paid-up (1:2), subject to the approval of equity shareholders.

Varun Beverages is a key player in beverage industry and one of the largest franchisees of PepsiCo in the world (outside USA). The company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. As on date, VBL has been granted franchises for various PepsiCo products across 27 States and 7 Union Territories in India. VBL has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe.