Shares of Pepsico's India Bottler Surge Over 7% After Q3 Results

Varun Beverages jumped over 7.5% to reach Tuesday's Intraday high of ₹1,314.85. 

What Happened: The company reported a 151% year-over-year increase in its profit at ₹81.5 Crore in Q3FY23. Its revenue from operations also saw an around 28% YoY jump at ₹2,214 crore. The company also highlighted that sales volume grew by 17% to 13.2 crore cases "in a seasonally weak quarter."

The company attributed the impressive numbers to "strong performance in India as well as International territories." It noted that the demand grew across markets after two years of pandemic-related led to robust sales volume growth. 

Talking about the rising cost of raw materials the company said it had limited impact on gross margins because of "early stocking of key raw materials" and strategic price hikes.

Commenting on strong results, the company's Chairman, Ravi Jaipuria said, "the strong recovery in demand post the pandemic and our continued efforts towards expanding the distribution network across markets resulted in a 41% growth in consolidated sales volume" in CY2022.

The company – PepsiCo’s second-largest bottling company in the world outside the United States — also announced a dividend of ₹1/share.

Price Action: Shares of Varun Beverages were 6.99% higher at ₹1,306.20 as the markets closed on Tuesday.

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