Varun Beverages Ltd. is an Indian MNC that manufactures bottles and distributes beverages, It is also the second largest bottling company of PepsiCo’s beverages in the world outside the United States. The company has reported its Q4 FY 2023-24 earnings today.
The PepsiCo bottler has reported a surge of 25% in net profits to Rs.547.9 crores for Q4 FY 2023-24 as compared to Rs.438.5 crores in Q4 FY 2022-23. The company reported its revenue surging to 11.2% at Rs.4,397.9 crores in this quarter against Rs.3,952.5 crores in Q4 FY 2022-23.
EBITDA for this quarter stood at Rs.988.7 crore increased by 23.9% from Rs.798 crore in Q4 FY 2022-23. Adding to this the EBITDA margins for this quarter have improved by 240 Bps to 22.5%.
| Parameters | Q4 FY 2023-24 | Q4 FY 2022-23 | Change |
| Revenue | Rs.4,397.9 crores | Rs.3,952.5 crores | +11.2% |
| EBITDA | Rs.988.7 crore | Rs.798 crores | +23.9% |
| EBITDA Margins | 22.5% | 20.1% | +240 Bps |
| Net Profits | Rs.547.9 crores | Rs.438.5 crores | +25% |
Varun Beverages has said that it is focusing on reducing the sugar content in its products. Around 45% of the reported consolidated sales volume has come from products which contain no sugar or low sugar.
On Capex plans, Varun Beverages has initiated the establishment of three new greenfield facilities in Maharashtra, Uttar Pradesh, and Odisha for the core Indian market, investing Rs.1,000 crores, Rs.1,100 crores, and Rs.700 crores respectively. These investments are aimed at meeting the increasing demand for beverages and bolstering the company’s long-term growth prospects.
After reporting its Q4 FY 2023-24 results, the stock of Varun Beverages Ltd. is currently trading down by 2.15% at Rs.1432 a piece, The stock has given returns of more than 80% over the past year.
Conclusion: The company has seen improvement in its Q4 earnings on both a topline and bottom-line basis, margins have also improved this quarter. However, the stock has fallen by 2% after reporting its earnings in the live market, The stock currently trades at Rs.1432.90 a piece.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: May 13, 2024, 1:59 PM IST
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