Varun Beverages reported a 2.4% increase in consolidated sales volumes for Q3 CY2025, driven by strong performance in international markets, which grew by 9%. Domestic volumes were impacted by prolonged rainfall across India. EBITDA stood at ₹11,474 million and PAT reached ₹7,451.92 million. The company is expanding its international presence and diversifying its product offerings.
Financial Performance Overview
Varun Beverages Limited (VBL) announced its Q3 and 9M CY2025 results, demonstrating steady performance amidst challenging conditions. Key highlights include:
- Consolidated Sales Volume Growth: A 2.4% increase in sales volume to 273.8 million cases for Q3 CY2025, compared to 267.5 million cases in Q3 CY2024.
- International Market Strength: International volumes experienced robust growth of 9.0%, primarily driven by South Africa.
- Net Revenue: Net revenue from operations increased by 1.9% to ₹48,966.5 million in Q3 CY2025.
- EBITDA: ₹11,474 million in Q3 CY2025.
- PAT: Profit After Tax increased by 18.5% to ₹7,451.92 million.
Key Strategic Developments
VBL is undertaking several strategic initiatives to expand its business and enhance its operational efficiency:
- Kenyan Subsidiary: Incorporation of a wholly-owned subsidiary in Kenya to focus on manufacturing, distribution, and sales of beverages.
- Carlsberg Partnership: Exclusive distribution agreement with Carlsberg Breweries A/S for African markets to test market beer.
- Product Diversification: Addition of alcoholic beverage business to the company’s objectives.
- Visi-Cooler Manufacturing: Formation of a joint venture, White Peak Refrigeration Private Limited, for manufacturing visi-coolers.
Sustainability Initiatives
VBL is committed to sustainability and has implemented various initiatives to reduce its environmental footprint:
- Water Positive: Focus on being water positive through initiatives like increasing ground water levels and reducing water usage in production. The company maintained over 190 water bodies.
- Reduced Water Usage: Water consumption per liter of beverage produced has reduced to 1.56* in 2024 and aims for 1.40 by 2030.
- Renewable Energy: Increasing the mix of renewable energy sources.
- Circular Economy: Focus on plastic waste recycling and reduction. Target of 50% rPET mix in packaging by 2030.
Source: BSE