PepsiCo’s botter Varun Beverridge (VBL) recorded a 29 per cent revenue growth and 30 per cent sales hike in the first quarter of the calendar year 2025. But in South Africa, some pressure was observed on joint sales income due to dull receipts.
The company’s revenue reached Rs 5,680 crore. Gross profit was Rs 3,151 crore. This is an increase of up to 25.5 per cent on an annual basis. The company’s gross margin was 55.5 per cent with a weakness of 161 base points annually. Ebita margin also decreased by 20 basis points on an annual basis while Ebita rose by 28 per cent to Rs 1,264 crore.
South Africa and DRC (Democratic In addition to the integration of Republic of Congo), sales growth was 15.5 per cent on an annual basis. The receipts remained flat with Rs 178 per box on an annual basis. Sales growth in the domestic market and international market. Carbonated soft drinks, juices, water sales rose 38 per cent, 22 per cent and 6 per cent to 23.4 crore, 2.2 crore and 5.6 crore boxes respectively as compared to a year ago.
The calendar with integration of South Africa trading was 22.7 percent in the first quarter of 2025 (the South African margin is low due to the high ratio of brands owned by brands).
Ebita per box declined by 2 per cent to Rs 40 crore on an annual basis. Adjusted PAT rose 35 per cent to Rs 720 crore on an annual basis. The depreciation expenditure increased by 45.3 percent on an annual basis due to the operation of three new plants.
QIP was used to repay the loan which reduced the financial cost in India. Most of the remaining interest expenditure is associated with South African operations. VBL is confident of registering two points in the year 2025 with the help of capacity expansion in Himachal Pradesh and Uttar Pradesh. In addition, two more plant will start production by May.
The management expects an increase in two points in the long term and 21 percent of Ebita margin in India. VBL is focusing on setting up more commercial refrigeration units to improve delivery penetration.
The integration of business has been good in South Africa. But the margin remains low. The company aims to give up some non-profit products in this market and increase the portfolio of PepsiCo.
The management pointed out a change in consumers’ choice, including Nimbuz which is registering a 100 percent increase on an annual basis. Energy drinks saw a strong growth, which is the fastest growing segment.
Participation calendar of low-shugger and no-scorch products reached 59 per cent of consolidated sales in the first quarter of 2025. This shows the changes in consumers’ choice. The company has introduced a new energy drink, sting gold and is also expected to launch cumin -based drinks by the end of the second quarter, expanding the portfolio. VBL is distributing and selling snack products of PepsiCo in Zimbabwe and Jambia and exploring new opportunities to increase packaged foods.
First Published – May 4, 2025 | 10:41 pm IST
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