The company stated that the increase in profit after tax was driven by growth in revenue from operations and improvement in margins.

Profit before stood at Rs 666.92 crore in the September 2023 quarter, up 30.47% as against from Rs 511.18 crore posted in the same quarter last year.

Net realization increased by 5.6% to Rs 176.3 per case driven by an increase in realization per case primarily in International markets during the period under review.

During Q3 CY23, total sales volumes grew by 15.4% to 220 million cases from 190 million cases in Q3 CY22, led by double-digit growth in both Indian & International markets.

Gross margins improved by 163 bps to 55.3% from 53.7% in Q2 CY24, primarily owing to softening of PET chips prices.

EBITDA stood at Rs 8,821.4 crore, recording a growth of 26.2% on YoY basis while EBITDA margin improved by 79 bps to 22.8% in Q3 CY24, driven by higher gross margins and operational efficiencies.

Ravi Jaipuria, chairman of Varun Beverages said, “We are pleased to report a robust quarter, achieving a top-line growth of 22% and a PAT growth of 30% YoY. Demonstrating remarkable resilience, our consolidated sales volumes registered a solid growth of 15% making a strong comeback following the unseasonal rains in Q2 CY2023 in India. Both our Indian and international markets contributed to this achievement with a healthy double-digit growth.

We have achieved notable progress on the operational front by making significant investments to develop both greenfield and brownfield manufacturing facilities throughout India. In addition, our greenfield facility in DRC is progressing well and is slated to be commissioned in the upcoming months. As part of our commitment to diversifying and enhancing our portfolio, we are also enhancing our capacity for juices and value-added dairy beverages to align with evolving consumer demands.

As we intensify our foothold in India and expand our reach in Africa, our strategic initiatives are aimed towards strengthening our position in the global beverage industry.”

Meanwhile, the board approved to incorporate a subsidiary company VBL Mozambique to carry on the business of distribution of beverages. It will help company to expand its business operations in Mozambique. The acquisition is expected to be completed on or before 30 November 2023.

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.

Shares of Varun Beverages shed 0.57% to currently trade at Rs 946.30 on the BSE.