Varun Beverages Share Price Rose 2.14%; Reports 24.1% Revenue Growth in Q3 CY2024 and Announces QIP

Varun Beverages Limited announced its financial results for the third quarter and nine months ended September 30, 2024. 

Financial Performance in Q3 CY2024

For Q3 CY2024, Varun Beverages reported a 24.1% year-on-year increase in revenue from operations, totalling ₹48,046.8 million, compared to ₹38,705.2 million in Q3 CY2023. Additionally, the net realisation per case improved by 1.9%, reaching ₹179.6 in Q3 CY2024.

The company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) also saw significant growth, rising by 30.5% to ₹11,511.2 million from ₹8,821.4 million in the same quarter last year. Profit After Tax (PAT) increased by 22.3% to ₹6,288.3 million in Q3 CY2024, up from ₹5,140.6 million in Q3 CY2023. 

Financial Performance in 9M CY2024

In the nine months ended September 30, 2024, Varun Beverages continued its upward trajectory, reporting a 22.0% year-on-year growth in revenue from operations (net of excise/GST), amounting to ₹163,188.6 million compared to ₹133,748.9 million in 9M CY2023. The company’s EBITDA for this period increased by 29.5%, reaching ₹41,311.0 million, up from ₹31,912.0 million in the corresponding period last year. Furthermore, PAT surged by 24.5% to ₹24,386.4 million in 9M CY2024, compared to ₹19,580.5 million in 9M CY2023.

Commenting on the performance for Q3 and 9M CY2024, the Chairman of Varun Beverages

Limited, Mr Ravi Jaipuria, added, “On the operational front, we are excited to share the successful commissioning of our greenfield facility in the Democratic Republic of Congo (DRC). In response to strong demand and our limited presence in the region, we have swiftly ramped up the facility to 100% utilisation on a three-shift basis. This performance has encouraged us to move forward with expansion plans including backward integration and a second facility, expected to commence operations in the next calendar year.” 

He also stated, “Furthermore, we are making significant progress on new facilities across India, which are on track to be commissioned before the key season next year. These developments reflect our commitment to capturing high-growth opportunities and enhancing both our domestic and global footprint.”

The company further added that the Board of Directors approved a proposal to raise funds through the issuance of equity shares for an aggregate amount not exceeding ₹7,500 crore via Qualified Institutional Placement (QIP). This capital will bolster the company’s efforts in expanding into new territories, pursuing strategic acquisitions, and further strengthening its balance sheet. 

On October 22, 2024, Varun Beverages share price opened at ₹584.20, up from its previous close of ₹578.45. At 12:28 PM, the share price of Varun Beverages was trading at ₹590.80, up by 2.14%.

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