Coca-Cola India's Strategic Divestments Lead to Profit Decline in FY 2024-25

Hindustan Coca-Cola Beverages Ltd reported a 73% drop in net profit for FY 2024-25, attributed to the divestment of bottling operations in various Indian regions. Revenue declined 9%, while tax expenses decreased 72%. Coca-Cola's refranchising strategy continues with significant global acquisitions to focus on growth.

In fiscal year 2024-25, Hindustan Coca-Cola Beverages Ltd (HCCBL), the bottling division of Coca-Cola in India, experienced a significant 73% decrease in net profit, amounting to Rs 756.64 crore. The decline is largely attributed to strategic divestments aimed at refranchising its operations.

The company's revenue from operations fell 9% to Rs 12,751.29 crore. This decrease is linked to its newly implemented business strategy, which involved divesting its bottling operations in regions such as Rajasthan, Bihar, and the North-East.

During an earnings call, Coca-Cola's CEO James Quincey highlighted these moves as part of a broader plan to unlock growth opportunities in India and beyond, while focusing on brand innovation and building stronger bottling partnerships.

(With inputs from agencies.)