Revenue from operations (excluding excise duty) surged 28.94% YoY to Rs 5,566.93 crore in the first quarter of 2025.

During the quarter, profit before tax climbed 36.61% to Rs 977.81 crore from Rs 715.75 crore recorded in the same quarter last year. Gross margins stood at 54.6%, a decline of 171 basis points as compared to Q1 CY2024

For Q1 CY25, EBITDA grew 27.8% to Rs 1,263.96 crore from Rs 988.76 crore posted in the corresponding quarter last year. The EBITDA margin marginally declined at the consolidated level by 20 bps because of the lower profitability in the South African market (14.4%) and its higher mix in Q1 CY2025.

Consolidated sales volume rose 30% to 312.4 million cases in Q1 CY25 from 240.2 million cases in Q1 CY24. This was driven by organic volume growth of 15.5% in India and inorganic volume contributions from South Africa and the Democratic Republic of Congo.

Net realizations per case increased by 1.8% in India and remained flat in the international market, excluding South Africa. On a consolidated basis, net realization per case fell 0.9% from last year due to lower realization in own brands in the South African market.

Ravi Jaipuria, chairman of Varun Beverages, said, 'We are pleased to report a strong operational and financial performance in the first quarter of CY2025. Consolidated sales volumes grew by 30.1% YoY, driven by healthy organic volume growth of 15.5% in India. The integration of the SA territory has progressed well, with focused efforts on strengthening on-ground infrastructure, streamlining operations, and enhancing execution across the market.

We achieved 141 million cases in SA over the trailing four quarters, marking a growth of approximately 13% over the same period last year. Historically, net realizations in SA are lower due to a higher mix of own brands; however, we are actively working to scale PepsiCo's portfolio, which is expected to support improvements in realizations and margins going forward.

We recently commenced operations at our new greenfield production facilities in Kangra (Himachal Pradesh) and Prayagraj (Uttar Pradesh), significantly enhancing capacity concurrently with the peak summer season. The implementation of the other two greenfield production facilities scheduled for the 2025 season in Bihar and Meghalaya is on track and shall commence commercial production very soon. Additionally, we have established backward integration facilities at Prayagraj and DRC, further strengthening our operational backbone and supply chain efficiency.

Building on our nascent presence in the snack food segment, we have initiated the distribution and sale of PepsiCo's snack products in Zimbabwe and Zambia. These markets present a significant growth opportunity within the packaged foods category, supporting our focus on portfolio expansion across high-potential regions.

Looking ahead, we see immense headroom for growth in India's beverage market, supported by rising per capita incomes, accelerating urbanization, expanding electrification, and improving cold-chain infrastructure. With adequate capacities in place, a diversified product portfolio, and a strengthened distribution network, we remain well-positioned to capitalize on these opportunities and deliver sustainable value to all stakeholders.'

Meanwhile, the company's board has announced an interim dividend of Rs 0.50 per share for the financial year 2025, and the interim dividend will be paid on and from Friday, 9 May 2025, to those shareholders whose names appear in the Register of Members of the Company or in the list of beneficial owners maintained by the Depositories as of Wednesday, 7 May 2025.

Varun Beverages is a key player in the beverage industry and one of the largest franchisees of PepsiCo in the world (outside the USA). As of this 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 shed 0.19% to currently trade at Rs 527.95 on the BSE.

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