Varun Beverages Ltd, a key bottling partner for PepsiCo, reported a 5% rise in net profit for the second quarter of calendar year 2025. The company’s profit reached ₹1,325 crore, up from ₹1,261 crore in the same quarter last year, despite a drop in sales volumes.
Revenue during the quarter declined by 2.5%, down to ₹7,017 crore, largely due to an early monsoon season in India, which impacted summer beverage demand. Domestic sales volumes fell by 7.1%, though international markets delivered strong results with a 15.1% volume growth, especially in South Africa.
The company sold 389.7 million cases during the quarter, marking a 3% decline year on year. However, better pricing and product mix improvements, particularly in international regions, helped maintain profitability. Net realization per case increased slightly, and EBITDA rose 0.4% to ₹1,998.8 crore, with EBITDA margins improving to 28.5%.
Chairman Ravi said the business remained resilient despite weather challenges. He emphasized ongoing investments in expanding retail reach, including increased deployment of cooling equipment and broader regional distribution.
The board also approved a second interim dividend of ₹0.50 per share, which equates to 25% of the face value. The dividend will be paid on or after August 5, 2025, with August 2 set as the record date for eligible shareholders.
Looking ahead, the company plans to leverage its expanded production capacity and growing international footprint to drive future performance. Continued cost control, improved realizations, and broader market access are expected to support profitability in upcoming quarters.
Key Points:
- Net Profit Up 5%: Varun Beverages posted ₹1,325 crore profit in Q2 CY2025, up from ₹1,261 crore last year.
- Volume Dip: Sales volumes dropped 3% due to early monsoons; domestic volumes fell 7.1%.
- Global Growth: International volume rose 15.1%, led by strong performance in South Africa.
- Revenue Down: Revenue declined 2.5% to ₹7,017 crore despite improved price realization.
- EBITDA Margin Expansion: EBITDA grew to ₹1,998.8 crore; margin improved to 28.5%.
- Retail Expansion: Company focused on distribution reach and visi cooler deployment to boost market presence.
- Dividend Announced: ₹0.50 per share interim dividend declared; record date is August 2, 2025.
- Positive Outlook: New capacity, product mix, and global expansion expected to support future growth.
