Varun Beverages Ltd's Q3FY25 Quarterly Results

Result Summary

• Varun Beverages Ltd reported a 22.7% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 39.5%.
• Its expenses for the quarter were down by 13.7% QoQ and up 39.8% YoY.
• The net profit decreased 68.9% QoQ and increased 36.1% YoY.
• The earnings per share (EPS) of Varun Beverages Ltd stood at 0.6 during Q3FY25.

Financial Statments for Q3FY25

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Varun Beverages Ltd is one of the largest franchisees of PepsiCo in the world outside the United States. The company is primarily engaged in the production, bottling, and distribution of carbonated soft drinks and non-carbonated beverages, including those under the PepsiCo brand. Varun Beverages operates extensively in India, representing PepsiCo's products across multiple states and regions. In addition to its operations in India, the company has a significant presence in international markets such as Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe. Recent developments for Varun Beverages may include expansions into new markets, innovations in product offerings, or enhancements in operational efficiencies. However, specific recent developments are not provided in the current data.

Revenue

In the third quarter of FY25, Varun Beverages Ltd reported a total income of ₹3733.43 crores. This reflects a quarter-over-quarter (QoQ) decrease of 22.7% from the ₹4828.93 crores recorded in the second quarter of FY25. However, there is a substantial year-over-year (YoY) increase of 39.5% compared to the total income of ₹2676.80 crores in the third quarter of FY24. The company's revenue growth on a YoY basis is notable, suggesting a significant increase in income over the past year. The QoQ decline, however, indicates a reduction in revenue when compared to the previous quarter.

Profitability

Varun Beverages Ltd's profitability in Q3FY25 was marked by a profit before tax (PBT) of ₹254.82 crores, a significant decline of 68.2% QoQ from ₹800.23 crores in Q2FY25. On a YoY basis, PBT increased by 35.7% from ₹187.77 crores in Q3FY24. The tax expense in Q3FY25 was ₹58.49 crores, down 65.9% from ₹171.31 crores in the previous quarter, but up 32.3% YoY from ₹44.22 crores a year prior. Profit after tax (PAT) for Q3FY25 stood at ₹195.65 crores, which is a decrease of 68.9% compared to ₹628.82 crores in Q2FY25, yet an increase of 36.1% from ₹143.76 crores in Q3FY24. Earnings per share (EPS) declined by 68.4% QoQ to ₹0.60 from ₹1.90, and by 40.0% YoY from ₹1.00 in Q3FY24.

Operating Metrics

The financial data highlights a decrease in total expenses by 13.7% QoQ to ₹3478.60 crores in Q3FY25 from ₹4028.71 crores in Q2FY25. Despite this reduction, there was a YoY increase of 39.8% from ₹2489.03 crores in Q3FY24. This change in expenses correlates with the trends in income and profitability, with a notable increase in total expenses over the year, parallel to the increase in income. The decrease in expenses from the previous quarter is significant, although it did not offset the QoQ decline in revenues and profits. The company’s ability to manage its expenses effectively will be crucial for maintaining its financial health and operational efficiency.