Total expenses added up to Rs 3,478.61 crore, up 39.8% YoY. This was primarily on account of higher raw material costs (up 41.1% YoY), higher employee costs and higher other expenses (up 40% YoY).
EBITDA improved by 38.7% to Rs 579.97 crore in Q3 FY25 from Rs 418.29 crore in Q3 FY24. EBITDA margin remained unchanged at 15.7%.
Profit before tax in Q3 FY25 stood at Rs 254.14 crore, up by 35.2% from Rs 187.98 crore in Q3 FY24. Tax expenses for the period under review was Rs 58.49 crore (up 32.3% YoY).
The company’s PAT in CY2024 increased by 25.3% to Rs. 2,634.28 crore from Rs 2,101.81 crore in CY2023, led by volume growth & improved margins.
Revenue from operations (net of excise / GST) grew by 24.7% YoY to Rs 20,007.65 crore in CY2024. Consolidated sales volume grew by 23.2% to 1,124.4 million cases in CY2024 from 912.9million cases in CY2023.
Ravi Jaipuria, chairman, Varun Beverages, 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 into a new country of 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 consolidated revenues increase by 24.7%, EBITDA growth of 30.5%, and PAT growth of 25.3% for the year.
We are progressing well in South Africa as we grew the sales volumes by 12.5% in the very first year of operations. We are consciously reducing our reliance on modern trade channel and enhancing our distribution network in general trade.
As an enabler, we have placed more visi-coolers in the SA market in a single year than what was cumulatively placed till date by previous operators. We are working on plans for backward integration in the territory.
We also entered into share purchase agreement to acquire PepsiCo’s business in Tanzania and Ghana, pending regulatory and other approvals. Integration of these acquisitions, along with our operations in South Africa, shall strengthen our presence in key international markets.
This, coupled with the commissioning of new greenfield facilities in India and DRC, shall enhance our manufacturing and distribution capabilities, ensuring we are well-positioned to cater to growing consumer demand.
Additionally, our foray into the snacks business with PepsiCo in Morocco, Zimbabwe and Zambia marks an important step in enriching our portfolio and leveraging synergies with our existing infrastructure."
Varun Beverages is a key player in beverage industry and one of the largest franchisees of PepsiCo in the world (outside USA). As on date, VBL has been granted franchises for various PepsiCo products across 27 States and 7 Union Territories in India. VBL has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe.
The scrip fell 2.10% to currently trade at Rs 542.35 on the BSE.