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Updated 14:37 IST, July 30th 2024

Varun Beverages misses Q2 profit expectations, shares fall

Pepsi India's bottler, Varun Beverages, reported second-quarter results that fell slightly short of analysts' profit expectations, despite robust sales growth.

Reported by: Business Desk
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The company's revenue from operations rose nearly 29 per cent | Image: Unsplash

Varun Beverages earnings: Shares of Varun Beverages fell as much as 6.36 per cent to hit an intraday low of Rs 1,575.95 after its June quarter earnings missed analysts estimates.

Pepsi India's bottler, Varun Beverages, reported second-quarter results that fell slightly short of analysts' profit expectations, despite robust sales growth. The company's shares dropped 5.4 per cent to Rs 1,595, making it the biggest loser in the NIFTY FMCG index.

Varun Beverages, a major franchisee of PepsiCo outside the United States, announced a consolidated net profit increase of nearly 26 per cent to Rs 1,253 crore for the June quarter. However, this was slightly below the analysts' estimate of Rs 1,259 crore, according to LSEG data. The shortfall was attributed to a nearly 29 per cent surge in expenses, driven by rising costs of raw materials such as sugar, flavourings, carbonated water, packaging materials, and other manufacturing inputs.

The company's revenue from operations rose nearly 29 per cent to Rs 7,334 crore, bolstered by increased demand for cold beverages during prolonged summer heat, which extended into June.

In addition to its financial results, Varun Beverages, headquartered in Gurugram and operating in six countries, announced an interim dividend of Rs 1.25 per share and recommended a split of its existing equity shares.

Following earnings announcement, Varun Beverages shares fell 5.42 per cent to Rs 1,592.55, underperforming the Sensex which was up 0.41 per cent.

(With Reuters inputs)

Published 12:58 IST, July 30th 2024