Varun Beverages' Q1 profit soars 35% to Rs 726 crore

Varun Beverages witnessed a significant surge in profitability for the first quarter of calendar year 2025, reporting a consolidated net profit of ₹726 crore. This marks a substantial 35 percent increase compared to the ₹537 crore profit recorded during the same January-March period in 2024.

The company's revenue from operations also demonstrated robust growth, reaching ₹5,567 crore, a 29 percent rise from the ₹4,317 crore reported in the first quarter of the previous year.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed to ₹1,264 crore, reflecting a 27.8 percent increase from ₹989 crore in the corresponding period of 2024. However, the EBITDA margin slightly decreased to 22.70 percent from 22.90 percent. Total expenses for the quarter amounted to ₹4,730 crore, up from ₹3,690 crore in the prior year.

Commenting on the performance for Q1 CY2025 Ravi Jaipuria, Chairman, Varun Beverages Limited, said, "We are pleased to report a strong operational and financial performance in the first quarter of CY2025. Consolidated sales volumes grew by 30.1% YoY, driven by healthy organic volume growth of 15.5% in India. The integration of the SA territory has progressed well, with focused efforts on strengthening on-ground infrastructure, streamlining operations, and enhancing execution across the market. We achieved 141 million cases in SA over the trailing four quarters, marking a growth of ~13% over the same period last year."

"Historically, net realizations in SA are lower due to a higher mix of own brands; however, we are actively working to scale PepsiCo’s portfolio, which is expected to support improvements in realizations and margins going forward. We recently commenced operations at our new greenfield production facilities in Kangra (Himachal Pradesh) and Prayagraj (Uttar Pradesh), significantly enhancing capacity concurrently with the peak summer season. The implementation of other two greenfield production facilities scheduled for 2025 season in Bihar and Meghalaya is on track and shall commence the commercial production very soon. Additionally, we have established backward integration facilities at Prayagraj and DRC, further strengthening our operational backbone and supply chain efficiency."

"Building on our nascent presence in the snack food segment, we have initiated the distribution and sale of PepsiCo’s snack products in Zimbabwe and Zambia. These markets present a significant growth opportunity within the packaged foods category, supporting our focus on portfolio expansion across high-potential regions."