Varun Beverages, one of the largest franchisee bottlers of PepsiCo, has reported a 69% year-on-year increase in net profit for the first quarter of the financial year 2022. The company’s net profit stood at Rs 429 crore, up from Rs 254 crore in the corresponding quarter of the previous year. The company attributed the strong performance to robust volume growth and cost efficiency measures.
Varun Beverages also announced a stock split of its shares in the ratio of 1:5. The split is aimed at improving the liquidity of the company’s shares in the market and making them more affordable for retail investors. The stock split is subject to approval from the shareholders of the company.
The company’s revenue for the quarter increased by 46% year-on-year to Rs 3,202 crore. The growth was driven by a strong performance in India, where the company reported a volume growth of 48%. The company’s international business also performed well, with a volume growth of 30% in Africa, Middle East, and Asia region.
Varun Beverages has been expanding its footprint through acquisitions and partnerships. Recently, the company acquired PepsiCo’s bottling operations in South and West regions of India. The acquisition is expected to strengthen the company’s position in the Indian beverage market.
