Varun Beverages Q3 Results: PepsiCo India bottler's profit rises 36% YoY on stronger volumes

India's Varun Beverages reported a ‍higher quarterly profit on Tuesday as higher sales ⁠volumes and lower borrowing costs supported margins, sending shares up 4.9% in afternoon trade.

The company, ‌one of ‌PepsiCo's biggest bottling partners outside the United States, ‌said net profit rose 36% to 2.52 billion rupees ($27.87 million) in the quarter ended December 31.

Consolidated sales volumes rose 10.2% in ​the reported quarter, helped ​by improved performance in India during ‌the ‍festive season and continued growth ‍in international markets.


Revenue from operations rose 13.5% ‌year-on-year to 43.35 billion rupees in the quarter. Sales volumes in India grew 10.5%, while international markets posted 10% growth, led by Africa.

The company said profit growth was ‍also supported by lower finance costs and higher other income, including ‍interest income ⁠on deposits ⁠and favourable currency movements in international markets.

Varun Beverages packages and distributes beverages under Pepsi and Tropicana labels, among others. It also sells beverages under its own brands such as "Jive" and "Cream Bell".

($1 = 90.4280 Indian rupees)