For the quarter, Varun Beverages’ India business volume growth stood at 14.4% on a year-on-year basis. A poll of analysts had anticipated the figure to be in excess of 20%.
In its earnings release, the management highlighted that volume growth since the onset of the season in March remained in the twenties, except for the month of April, where it was flat, and that resulted in the overall volume picture of 14.4%.
Barring the revenue figure, most of the other parameters for Varun Beverages during the quarter were either in-line or marginally lower than what the street was anticipating.
Varun Beverages reported 21% revenue growth during the quarter to ₹8,650.5 crore. The company had reported a topline of ₹7,163 crore during the same quarter last year. The figure is marginally higher than the CNBC-TV18 poll of ₹8,565 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) during the quarter stood at ₹2,344 crore, 17% higher than last year, but marginally lower than the CNBC-TV18 poll of ₹2,415 crore.
EBITDA margin during the quarter narrowed by 90 basis points year-on-year to 27.1% from 28% earlier. The CNBC-TV18 poll had pegged the figure to be 28.2%.
Gross margins improved by 44 basis points during the quarter to 55%, supported by a better mix of the international business, and early stocking of key raw materials and savings in sugar consumption with a higher mix of low sugar / no sugar products in India.
International volumes during the quarter included 11.8 million cases from the acquisition of Twizza in South Africa. Realization per case for beverages improved by 1.2% on a consolidated basis aided by improved realizations in international territories.
“With adequate capacities, a growing and diversified portfolio, strong partnerships and an extensive distribution network, we are well positioned to deliver sustained and profitable growth and create long-term value for all our stakeholders,” Ravi Jaipuria, Chairman of Varun Beverages was quoted as saying.
Shares of Varun Beverages are trading 6.5% lower after the results announcement on Tuesday at ₹435.6. The stock has now extended its year-to-date losses to 10%.
