Latest news with #VarunBeveragesLtd
Business Standard
23-05-2025
- Business
- Business Standard
Quick Wrap: Nifty FMCG Index gains 1.63%
Nifty FMCG index ended up 1.63% at 56502.05 today. The index has slipped 2.00% over last one month. Among the constituents, Varun Beverages Ltd rose 4.09%, ITC Ltd added 2.39% and Nestle India Ltd jumped 2.23%. The Nifty FMCG index has soared 1.00% over last one year compared to the 8.21% increase in benchmark Nifty 50 index. In other indices, Nifty India Consumption index gained 1.11% and Nifty Private Bank index increased 1.08% on the day. In broad markets, the Nifty 50 increased 0.99% to close at 24853.15 while the SENSEX increased 0.95% to close at 81721.08 by Capital Market - Live News
Business Standard
23-05-2025
- Business
- Business Standard
Honasa Consumer Ltd Spikes 9.22%
Honasa Consumer Ltd has added 27.59% over last one month compared to 1.98% fall in BSE Fast Moving Consumer Goods index and 0.97% rise in the SENSEX Honasa Consumer Ltd rose 9.22% today to trade at Rs 300.85. The BSE Fast Moving Consumer Goods index is up 0.57% to quote at 20471.59. The index is down 1.98 % over last one month. Among the other constituents of the index, Varun Beverages Ltd increased 2.69% and Dwarikesh Sugar Industries Ltd added 1.89% on the day. The BSE Fast Moving Consumer Goods index went up 1.86 % over last one year compared to the 7.26% surge in benchmark SENSEX. Honasa Consumer Ltd has added 27.59% over last one month compared to 1.98% fall in BSE Fast Moving Consumer Goods index and 0.97% rise in the SENSEX. On the BSE, 46015 shares were traded in the counter so far compared with average daily volumes of 37632 shares in the past one month. The stock hit a record high of Rs 546.5 on 10 Sep 2024. The stock hit a 52-week low of Rs 190 on 07 Apr 2025.
Business Standard
22-05-2025
- Business
- Business Standard
Quick Wrap: Nifty FMCG Index falls 1.44%
Nifty FMCG index ended down 1.44% at 55598.05 today. The index has slipped 3.00% over last one month. Among the constituents, Colgate-Palmolive (India) Ltd shed 6.48%, Varun Beverages Ltd slipped 2.00% and United Breweries Ltd dropped 1.78%. The Nifty FMCG index has fallen 0.00% over last one year compared to the 8.90% increase in benchmark Nifty 50 index. In other indices, Nifty IT index has dropped 1.31% and Nifty Media index added 1.11% on the day. In broad markets, the Nifty 50 is down 0.82% to close at 24609.7 while the SENSEX has dropped 0.79% to close at 80951.99 today.
Mint
01-05-2025
- Business
- Mint
PepsiCo bottler Varun Beverages opts to expand reach as competitors in soft-drinks market engage in price war
Varun Beverages Ltd (VBL) has chosen to fight the war of reach instead of pricing as competition stiffens in India's soft drinks market. The PepsiCo bottler clocked a 30% year-on-year volume growth in the March quarter (Q1CY25), led by 15.5% organic growth in India and a deepening presence in overseas markets including South Africa and Zimbabwe. The company follows a January-to-December financial year. 'Strong double-digit volume growth in India with margin expansion should allay investor concerns around Reliance's Campa, a key positive in Q1," analysts at Jefferies India said in a report on 30 April, referring to the competitor's disruptive pricing. 'Although Q2CY25 is quite important from a seasonality perspective." India Ebitda margin rose 111 basis points (bps) due to operational efficiencies aided by volume growth. VBL's consolidated revenue increased 29% in Q1CY25, encouraging it to guide for a double-digit growth for CY25. This despite rivals splurging on campaigns in the ongoing Indian Premier League cricket tournament and sweetening trade margins. Nuvama Institutional Equities noted that Tata Consumer has re-indexed retailer margins in its NourishCo business to match the competition. Coca-Cola highlighted double-digit volume growth in Q1CY25, led by strong performances from Coca-Cola and Thums Up, although it reported a drop in non-alcoholic ready-to-drink beverages. 'Coca-Cola saw over 180 million servings during the Maha Kumbh Mela festival, which in our view would have helped the industry growth rate," Nuvama's analysts said. Reliance Consumer has announced new plants in Bihar and Assam to ramp up its manufacturing and distribution footprint. Against this backdrop, VBL coped by doubling down on expanding its outlet coverage and cold-chain infrastructure. Its mantra: deepen market penetration and sharpen the product mix. It believes rising competition is expanding the overall category, reiterating that with only 4 million of India's 12 million FMCG outlets covered, distribution remains a key growth lever. VBL's energy and hydration categories grew over 100% in Q1CY25. Value-added dairy, a new engine, also grew at 100%+, albeit on a smaller base. Smaller packs—though costlier to make—helped lift realisation per case, which rose 1.8% in India but stayed flat in the overseas markets. On the flipside, VBL's consolidated gross margin fell to 54.6%, down 171 basis points year-on-year. Higher volumes from South Africa hurt as a large part of sales there came from owned brands that have lower margins. Plus, overall water costs have been shifted into direct costs, while the rising share of carbonated soft drinks and smaller pack sizes pushed up the cost of goods sold. The Ebitda margin drop of 20 bps to 22.7% was much smaller in Q1CY25. VBL continues to hold firm on its India Ebitda margin floor of 21%. The management said that while inflation and product-mix shifts could pressure the margin temporarily, its backward integration, improved scale and focus on operational efficiency give it confidence in defending profitability—even in an aggressive market. VBL has a capex plan of ₹ 3,100 crore for this year. It is adding four plants, including the Bihar and Meghalaya sites set to go live in May. Meanwhile, South Africa remains a work in progress. Volumes rose 13% year-on-year over the trailing 12 months, and Pepsi's contribution improved from 15% to 20%. It is trimming loss-making SKUs. The South Africa business Ebitda margin improved from 10% at acquisition to 14% but is still much lower. VBL shares fell 2% on Wednesday after the results as investors weighed the near-term pressures. Jefferies cut its earnings per share estimates by 7-9% on moderation in its assumptions on growth in the international segment and lower margin assumptions. Even so, with the market offering enough growth potential, VBL's bet on reach may well pay off if execution is healthy.
Mint
30-04-2025
- Business
- Mint
Varun Beverages Q1 Results: PAT rises 35.2% YoY to ₹726.4 crore; revenue up 29%
Varun Beverages Q1 Results: Varun Beverages Ltd reported a consolidated net profit of ₹ 726.4 crore during the January to March quarter, which on a year-on-year basis, was a growth of 35.2%. The company follows a January-December calendar year format. The same stood at ₹ 537.2 crore in the corresponding period of the last financial year and the same has increased by 29%. The company's consolidated revenue from operations grew by 29.2% YoY to Rs. 5,680 crore in Q1 CY2025 as compared to ₹ 4398 crore in Q1 CY2024. The company announced a consolidated sales volume increase of 30.1% compared to the previous year's quarter, reaching 312.4 million cases. This growth was fueled by an organic volume increase of 15.5% in India, along with additional volume contributions from South Africa and the Democratic Republic of Congo, said the company in an exchange filing. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 27.8% compared to the same period last year, reaching ₹ 1,264 crore, although margins contracted by 20 basis points to 22.7%. The company experienced a 3.5% increase in revenue per case during the quarter compared to the same period last year, attributed to a better product mix in India and greater contributions from international markets, according to the company's press release. Varun Beverages announced it is making efforts to lower the sugar content in its offerings. Almost 46% of the company's total sales volume consists of no sugar or low sugar products. Varun Beverages has initiated the establishment of three new greenfield plants in Maharashtra, Uttar Pradesh, and Odisha, with capital expenditures of ₹ 1,000 crore, ₹ 1,100 crore, and ₹ 700 crore respectively, to cater to the increasing demand for beverages and to bolster its long-term growth plans. In the latest quarter, Varun Beverages successfully finalized the strategic acquisition of The Beverage Company (BevCo) located in South Africa. Varun Beverages Morocco SA, a fully-owned subsidiary, has signed an exclusive agreement for snacks to produce and package Cheetos in Morocco by May 2025. The company's board declared an interim dividend of ₹ 0.50 per share and set the record date for this dividend on May 9, 2025. 'The payment of interim dividend of ^0.50 (Fifty Paisa only) per Equity Share for the Financial Year 2025 on the total issued, subscribed and paid-up 338,18,65,692 Equity Shares of the nominal value of <2/- each. The interim dividend will be paid on and from Friday, May 9, 2025,' said the company. Varun Beverages share price post Q1 results was trading 0.18% lower at ₹ 528 apiece on the BSE. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, amidst the result announcement Varun Beverages share prices have seen volatile move in today's session, Overall the stock is trading in a range, with 500 acting as support and 550 acting as resistance, the next directional move would be seen only on a range breakout beyond the mentioned levels.
