Varun Beverages posts 84% jump in Q2 net profit

Varun Beverages, a bottling partner of PepsiCo India, has reported 83.73% increase in consolidated net profit at Rs 81.12 crore for the quarter ended September 30, 2019. The company had posted a profit of Rs 44.15 crore in the year-ago period.

Varun Beverages’ revenue from operations during the quarter stood at Rs 1,776.85 crore as compared to Rs 1,204.47 crore in July-September 2018. Its earnings before interest, tax, depreciation and amortization (EBITDA) rose by 54.2% to Rs 325.66 crore from Rs 211.24 crore.

The company is following the January-December financial year.

Ravi Jaipuria, Chairman of Varun Beverages, said, “Our India business has delivered organic volume growth of 17.5 per cent and our international territories have registered a 27 per cent growth led by exceptional performance in under-penetrated territories acquired in 2017 and early 2018.”

“Moreover, our key markets like Morocco, Zimbabwe, Nepal and Sri Lanka also reported double-digit growth in the current quarter,” he added.

The company has been associated with PepsiCo for more than 27 years, accounting for 80% of the US firm's beverage sales volume in India.