Varun Beverages Shares Broke Losing Streak: Gained ~2% After 5 Trading Sessions

On February 12, 2025, Varun Beverages share price broke its 5-day losing streak, and gained ~2%, reaching a day high of ₹529.45 at 11:30 AM, after opening at ₹522.05. In the past five trading sessions, Varun Beverages shares have fallen around 12% and touched a low of ₹553.00 from a high of ₹593.00 on February 5, 2025, on BSE.

Varun Beverages CY 2024 Performance

Varun Beverages reported a YoY increase of 24.7% in revenue from operations (net of excise/GST) reaching ₹2,00,076.5 million in CY2024, up from ₹160,425.8 million in CY2023. The consolidated sales volume grew by 23.2%, totalling 1,124.4 million cases in CY2024 compared to 912.9 million cases in the previous year.

EBITDA rose by 30.5%, reaching ₹47,110.7 million in CY2024 from ₹36,094.9 million in CY2023, with the EBITDA margin improving by 105 basis points to 23.5%. This margin improvement was primarily driven by better gross margins, although it was partially offset by the consolidation of the South African market and fixed costs from new capital expenditure yet to reach its full potential.

Profit After Tax (PAT) grew by 25.3%, increasing to ₹26,342.8 million in CY2024 from ₹21,018.1 million in CY2023, driven by volume growth and improved margins. Additionally, the share of low-sugar and no-sugar products in the company’s consolidated sales volume increased to around 53% in CY2024, up from approximately 42% in CY2023.

Acquisition Led Strategy

Varun Beverages has entered into a share purchase agreement to acquire PepsiCo’s business in Tanzania and Ghana, subject to regulatory and other approvals. The integration of these acquisitions, along with its operations in South Africa, will strengthen the company’s foothold in key international markets.

Additionally, the commissioning of new greenfield facilities in India and the DRC will bolster its manufacturing and distribution capabilities, positioning the company to better meet growing consumer demand. Moreover, Varun Beverages’ expansion into the snacks business with PepsiCo in Morocco, Zimbabwe, and Zambia is a significant move to diversify its portfolio and leverage synergies with its existing infrastructure.

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