Varun Beverages, one of the largest franchisees of PepsiCo globally (outside the U.S.), announced its financial performance for the September quarter today, October 29, along with a key update on its entry into the alco-beverages market.
In its Q3CY25 earnings filing, the company said that certain African subsidiaries of VBL will enter the beer market through an exclusive distribution agreement with Carlsberg Breweries.
“We are also diversifying our product offerings, and certain African subsidiaries of VBL will test market beer in their territories through an exclusive distribution agreement with Carlsberg Breweries A/S for their Carlsberg brand,” the company said in its filing.
Meanwhile, the company has incorporated a wholly owned subsidiary in Kenya to carry out the business of manufacturing, distributing, and selling beverages.
It also noted that its snacks facility in Morocco has ramped up to full-scale operations, while the upcoming Zimbabwe plant is progressing towards commissioning, marking continued progress in diversifying its portfolio beyond beverages.
Profit beat despite weak quarter; heavy rains hit carbonated drink sales
The company reported an 18.5% year-on-year (YoY) rise in net profit to ₹7,451.9 million, beating analysts’ consensus estimates. The growth was driven by lower finance costs and higher other income, which included interest on deposits in India and favourable currency movements in international markets.
Revenue from operations came in slightly above estimates, rising 1.9% YoY to ₹48,966.5 million in Q3CY2025 compared with ₹48,046.8 million in Q3CY2024. Domestic volumes were impacted by heavy rains, resulting in almost flat growth in India, while international volumes grew 9%, led by strong performance in South Africa.
Net realisation per case stood at ₹178.8 in Q3CY2025 versus ₹179.6 in Q3CY2024, due to a higher mix of water sales in international markets.
At the operating level, EBITDA remained flat, while EBITDA margins declined slightly by 53 bps to 23.4% in Q3CY2025 from 24.0% in Q3CY2024, impacted by higher operating expenses.
Despite an extended monsoon season affecting consumption trends in India, the company remains confident about the long-term growth potential of the domestic beverage industry.
It added that ongoing investments in capacity expansion, distribution reach, and cold-chain infrastructure are strengthening on-ground execution, positioning it well to capture demand recovery in the upcoming season.
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