Varun Beverages Limited (VBL), a key player in the beverage industry, announced its financial results for the second quarter and half year ended June 30, 2023, the company announced through an exchange filing.
Financial Performance Highlights
Performance Review for Q2 CY2023 Versus Q2 CY2022
i) Revenue from operations (net of excise / GST) grew by 13.3 percent YoY to Rs 56,114 million, driven by an increase in net realization.
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Consolidated sales volumes grew by 4.6 percent in Q2 CY2023 to 314 million cases compared to 300 million cases in Q2 CY2022, led by robust growth in international markets. Sales volume growth in India got affected due to abnormally high unseasonal rains throughout the quarter.
Net realization increased by 8.3 percent to Rs 179 per case primarily due to continued improvement in the mix of smaller SKUs (250ml) as compared to the base quarter.
ii) EBITDA increased by 20.8% to Rs 15,110.2 million from Rs 12,506.2 million.
Gross margins improved by 196 bps from 50.5 percent to 52.5 percent in Q2 CY2023 primarily owing to softening of PET chips prices.
EBITDA margins improved by 169 bps to 26.9 percent in Q2 CY2023 driven by higher gross margins and operational efficiencies.
iii) PAT increased by 25.4 percent to Rs 10,054.2 million from Rs 8,020.1 million in Q2 2022 driven by growth in revenue from operations and improvement in margins.
Depreciation increased by 12.3 percent and Finance cost increased by 49.5 percent in Q2 CY2023 on account of capitalization of assets and setting up of new production facilities.
Our consolidated revenue grew by 13.3 percent during the quarter, with our international territories showing strong momentum. Furthermore, sales volume growth and improvement in realization per case, contributed to a 20.8 percent and 25.4 percent improvement in our EBITDA and PAT performance during Q2, respectively, said Ravi Jaipuria, Chairman, Varun Beverages Limited.
Varun Beverages Limited shares
The shares of Varun Beverages Limited on Thursday at 12:18 pm IST were at Rs 827, up by 2.34 percent.
