Varun Beverages Ltd. has posted a 35% year-on-year increase in net profit for the first quarter of 2025, reflecting strong growth in its operations. The company, a leading franchisee of PepsiCo, recorded a consolidated net profit of ₹726.49 crore, compared to ₹537.27 crore in the same quarter last year.
Financial Highlights
- Revenue: ₹5,566.94 crore, marking a 29% increase from ₹4,317.31 crore in Q1 2024.
- EBITDA: ₹1,263.96 crore, up 28% from ₹989 crore.
- Margins: EBITDA margin stood at 22.7%, slightly lower than 22.9% in the previous year.
- Sales Volume: Grew 30% to 312.4 million cases, driven by organic growth in India and contributions from South Africa and the Democratic Republic of Congo.
Dividend Announcement
The board has approved an interim dividend of ₹0.50 per share, with the record date set for May 7, 2025. The dividend will be paid to eligible shareholders starting May 9, 2025.
Growth Strategy & Future Outlook
Chairman Ravi Jaipuria expressed optimism about the company’s trajectory, citing new production facilities in Himachal Pradesh and Uttar Pradesh that will enhance capacity during peak summer demand. The company is also expanding its PepsiCo snack distribution in Zimbabwe and Zambia, tapping into new growth opportunities.
With a diversified product portfolio and strengthened distribution network, Varun Beverages is well-positioned to capitalize on India’s growing beverage market.
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