Varun Beverages Shares Fell ~3% After Release of FY24 Results: Revenue and PAT Surge

On February 10, 2025, Varun Beverages shares fell around 3% and touched the day low of ₹532.50 at 2:30 PM after opening at ₹558.05. The fall in Varun Beverages shares came after the release of results for the quarter and year ended December 31, 2024. Being a major player in the beverage industry, the company has unveiled its impressive financial results, showing solid growth in both revenue and profitability.

Varun Beverages Performance for CY2024

• Revenue Growth: Varun Beverages saw a notable 24.7% year-on-year (YoY) increase in revenue from operations (net of excise/GST), reaching a total of ₹200,076.5 million in CY2024. This marked a significant rise compared to ₹160,425.8 million in CY2023, reflecting the company’s strong market presence and consumer demand.
• Sales Volume Surge: Consolidated sales volume also experienced a robust increase, rising by 23.2% YoY to 1,124.4 million cases in CY2024, up from 912.9 million cases in the previous year. This volume growth played a key role in driving the overall revenue expansion.
• EBITDA and Profitability: EBITDA for CY2024 saw a remarkable 30.5% increase, reaching ₹47,110.7 million compared to ₹36,094.9 million in CY2023. Additionally, the EBITDA margin improved by 105 basis points, reaching 23.5%. The margin expansion was fueled by better gross margins, though the full potential of new capital expenditures and the integration of the South African market partially offset these gains.
• Profit After Tax (PAT): The company also reported a 25.3% rise in PAT, which reached ₹26,342.8 million in CY2024, up from ₹21,018.1 million in CY2023. This growth was largely driven by strong volume increases and improved margins across its product range.
• Shift to Healthier Product Mix: A significant trend in CY2024 was the increasing consumer preference for healthier beverage options. The share of low-sugar and no-sugar products in the company’s consolidated sales volume grew to around 53%, up from approximately 42% in CY2023, highlighting Varun Beverages’ successful alignment with shifting market trends.

Varun Beverages Strong Performance in Q4 CY2024

• Revenue and Sales Volume Expansion: For Q4 of CY2024, Varun Beverages reported a remarkable 38.3% YoY growth in revenue, reaching ₹36,887.9 million. This surge in revenue was supported by continued volume growth and robust demand for the company’s diverse beverage offerings.
• EBITDA Growth: EBITDA for Q4 2024 stood at ₹5,799.7 million, a 38.7% increase compared to ₹4,182.9 million in Q4 2023. This solid growth was driven by enhanced operational efficiency and a favourable product mix that supported profitability.
• PAT Increase: The company’s PAT for Q4 CY2024 increased by 36.1%, reaching ₹1,956.4 million, up from ₹1,437.6 million in Q4 2023. This was driven by strong volume growth and further margin improvement during the quarter.

Commenting on the performance for Q4 & CY2024 Mr Ravi Jaipuria, Chairman, Varun Beverages Limited said, “We are pleased to conclude CY2024 on a strong note through adding geographical presence into new territories of South Africa along with distribution rights in Namibia, Botswana, Mozambique and Madagascar. We also started greenfield operations in the new country of the Democratic Republic of Congo (DRC). The growth has been driven by organic volume growth and improved product mix. India volumes grew 11.4%, reflecting the strength of our distribution network and operational execution. Consolidated volumes increased by 23.2%, largely led by new territories resulting in a consolidated revenues increase of 24.7%, EBITDA growth of 30.5%, and PAT growth of 25.3% for the year.

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