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Shares of Varun Beverages pop 4% on strong quarterly profit
Varun Beverages, the company behind Pepsi bottling in India and beyond, saw its shares climb over 4% on Wednesday.
The buzz? An 81.2% sequential jump in quarterly profit, even though revenue dipped by 2.3% and domestic sales volume slid 7.1%.
Margins held steady despite dip in domestic sales
Despite selling less at home, Varun Beverages kept its margins strong—gross margin held steady at 54.5%, and EBITDA margin even improved to 28.5%.
The company declared a 25% interim dividend for shareholders.
Strong international demand, debt-free status boost stock
Global demand saved the day: international sales volumes jumped over 15%, with South Africa leading the charge.
Plus, Varun ended the quarter debt-free and sitting on ₹514 crore in free cash—showing solid financial health despite investing in new plants still ramping up.