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    Varun Beverages Q3 results: Net profit soars 150% YoY; Re 1/share dividend declared

    Synopsis

    The company's revenue from operations grew by 27.7% YoY to Rs 2,214 crore in the December quarter of CY22. Meanwhile, the EBITDA increased by 48.1% to Rs 3,07.5 crore in Q4CY22 from Rs 207.6 crore in Q4CY21.Its sales volumes grew by 17.8% in the December quarter of the calendar year 2022 to 13.2 crore cases

    Varun Beverages Q3 results: Net profit soars 150% YoY; Re 1/share dividend declaredReuters
    One of the largest franchisees of PepsiCo Varun Beverages on Monday reported a 150% year-on-year (YoY) increase in its consolidated profit after tax at Rs 81.5 crore for the quarter ended December 31, 2022. The company had reported a net profit of Rs 32.5 crore in the same quarter of the previous fiscal year.

    The company's revenue from operations grew by 27.7% YoY to Rs 2,214 crore in the December quarter of CY22. Meanwhile, the EBITDA increased by 48.1% to Rs 3,07.5 crore in Q4CY22 from Rs 207.6 crore in Q4CY21.

    Its sales volumes grew by 17.8% in the December quarter of the calendar year 2022 to 13.2 crore cases.

    Meanwhile, the company's board has recommended a final dividend of Re 1/share for the financial year ending 31 December 2022.

    "The strong recovery in demand post the pandemic and our continued efforts towards expanding the distribution network across markets resulted in a 41% growth in consolidated sales volume. Additionally, we achieved growth in realization per unit through strategic measures such as selective price hikes, rationalized discounts and incentives, and improved product mix. This allowed us to deliver revenue growth of 49% and PAT growth of 108% YoY on a consolidated basis in CY 2022," Ravi Jaipuria, Chairman of Varun Beverages said.

    "Our recent launches in the value-added Dairy segment have also been well-received by consumers, and we are confident that these products will continue to drive growth in the future," he added.

    On a yearly basis, its revenue from operations grew 49.30% YoY to Rs 13,173.1 crore in CY2022 as compared to Rs 8,823.2 million in CY2021. its sales volume grew by 40.9% in CY2022 to 80.2 crore cases supported by strong performance in India as well as International territories.

    Whereas, EBITDA, on a yearly basis, increased by 68.5% to Rs 2788.1 crore in CY2022 from Rs 1,654.6 CY2021. Also, the EBITDA margin improved by 241 bps to 21.2%, led by higher realizations and operating leverage from increased sales volume.

    The PAT of the company increased by 107.8% to Rs 1,550.1 crore in CY2022 from Rs 746.1 crore in CY2021, driven by high growth in revenue from operations, improvement in margins, and transition to a lower tax rate in India.

    At 1.56 pm, Varun Beverages stock was trading 6% higher at Rs 1,230.35 on BSE



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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