Varun Beverages Reports Solid Profit Despite Unseasonal Rain

Varun Beverages Ltd, the largest PepsiCo franchise bottler, reported a 5.04% increase in net profit due to operational efficiencies and lower finance costs, despite a decline in sales volume caused by unseasonal rainfall. The company saw improved international market performance and announced a second interim dividend.

Varun Beverages Ltd, the largest franchise bottler of PepsiCo, experienced a 5.04% rise in its consolidated net profit, totaling Rs 1,325.4 crore for the second quarter ending June 2025. This growth was largely attributed to enhanced operational efficiencies and reduced finance costs, although the sales volume faced challenges during the peak summer due to unseasonal rains.

In a regulatory filing, the company revealed a slight dip in revenue from operations, falling by 2.32% to Rs 7,163.02 crore compared to the same quarter last fiscal. The sales volume also saw a 3% decline, with 389.7 million cases sold in Q2 CY2025, down from 401.6 million cases in Q2 CY2024, chiefly influenced by heavy rains in India.

Despite this, international sales volumes saw a significant 15.1% increase, helping to mitigate the domestic decline. Chairman Ravi Jaipuria noted that, despite early monsoon rains, the company maintained its net realisations per case and EBITDA margins. Further, new production facilities were inaugurated, and the Morocco subsidiary began commercial production of Cheetos. VBL's board approved a second interim dividend of Rs 0.50 per share as a sign of confidence.

(With inputs from agencies.)