By Kosaku Narioka
Varun Beverages, the Indian soft-drink maker and PepsiCo franchisee, announced an impressive increase in net profit for the third quarter. The company reported a 32% rise in net profit compared to the same period last year, reaching 5.01 billion rupees ($60.2 million). This exceeded the estimated net profit of 4.76 billion rupees, as predicted by analysts polled by FactSet.
The revenue for the third quarter also witnessed significant growth, increasing by 21% from the previous year to reach 39.38 billion rupees. Varun attributed this growth to strong sales both in the Indian and international markets. The company operates in various South Asian countries as well as Africa.
A notable factor contributing to the improved financial performance was the increase in the gross profit margin. In comparison to the previous year, the third-quarter gross profit margin rose from 53.7% to 55.3%. This improvement was primarily a result of reduced materials costs for plastic bottles.
Looking ahead, Varun’s Chairman, Ravi Jaipuria, expressed confidence in the company’s prospects by stating that strategic initiatives were being implemented to strengthen its position within the global beverage industry. Additionally, Varun is set to commission a new facility in the Democratic Republic of the Congo in the coming months.
