Varun Beverages at new high
Varun Beverages, which had closed yesterday at Rs.926.35, opened itself today at Rs.960, hitting a new 52-week high.
For the second quarter ended 30th June’22 (Jan-Dec year ending), the company posted an over 2.5x rise in consolidated net profit at Rs.802 crore. Revenue from operations more than doubled to Rs.5017 crore.
Topline jumped up on account of robust volume growth over last year and higher realization on a consolidated basis. Its total sales volumes were up 97% (YoY) at 300 million cases on account of the strong demand during the peak season and return to normalcy.
Its gross margins declined by 302 bps to 50.5% due to an increase in preform prices by 30%. EBITDA margins improved to 25.2%, led by the higher realization and operating leverage from increased sales volume.