Varun Beverages Continued Gaining Streak for Second Straight Session

On March 4, 2025, Varun Beverages shares continued their gaining streak for the second consecutive trading session, reaching a day high of ₹468.00 at 10:20 AM, after opening at ₹456.15. In the past 2 trading sessions, Varun Beverages shares have gained over 7% after falling ~14% in the past week. Currently, the shares of Varun Beverages are trading near its 52-week low of ₹419.40.

Varun Beverages Business Developments

• In March 2024, Varun Beverages Limited (VBL) began the acquisition of The Beverage Company (Proprietary) Limited, South Africa, along with its wholly-owned subsidiaries (“BevCo”), making BevCo a subsidiary. This acquisition strengthened our presence in franchised territories across South Africa, Lesotho, and Eswatini, as well as in regions with distribution rights, including Namibia, Botswana, Mozambique, and Madagascar.
• In November 2024, VBL entered into a share purchase agreement with Tanzania Bottling Company SA and SBC Beverages Ghana Limited to acquire 100% of the share capital, subject to regulatory approvals, including from PepsiCo Inc. The equity value of the transaction is approximately USD 154.50 million for Tanzania and USD 15.06 million for Ghana. The acquisition is expected to be finalised on or before 28 February 2025 for Ghana and 31 March 2025 for Tanzania.
• For the 2024 calendar year, the company commissioned three new greenfield production facilities in India with backward integration: in Supa, Maharashtra; Gorakhpur, Uttar Pradesh; and Khordha, Odisha.

Varun Beverages CY24 Performance Highlights

In CY2024, Varun Beverages Limited achieved a notable performance, with revenue from operations (net of excise/GST) growing by 24.7% year-on-year, reaching ₹200,076.5 million compared to ₹160,425.8 million in CY2023. This growth was supported by a 23.2% increase in consolidated sales volume, which rose to 1,124.4 million cases in CY2024, up from 912.9 million cases in CY2023.

EBITDA for CY2024 saw a significant increase of 30.5%, rising to ₹47,110.7 million from ₹36,094.9 million in the previous year. The EBITDA margin also improved by 105 basis points to 23.5% in CY2024, driven by stronger gross margins. However, this was partially offset by the consolidation of the South African market and the fixed costs associated with new capital expenditures that have yet to reach their full utilisation potential.

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