Varun Beverages is a big newsmaker today. The stock, which had closed yesterday at Rs.1037, opened almost 1% higher at Rs.1045, rising over 6% to hit an intraday high at Rs.1101. Its 52-week high is at Rs.1140.
Then stock was up as the company announced a bonus in the ratio of 1:2 – one share for every two held. The company did not announce the record date but said that bonus shares will be issued within two months from the date of board approval i.e. by June 27, 2022.
The company also declared its earnings for Q1CY22.
Its Revenue from operations (net of excise / GST) grew by 26% (YoY) to Rs. 2828 crore, led by robust volume growth and improved net realizations. Its realization per case improved by 6.3% to Rs. 157.3 per case driven by price hike in select SKUs, change in SKU mix and higher realization in international markets.
Total sales volumes were up 19% YoY at 17.97 crore cases, driven by strong demand across geographies
EBITDA increased by 39% YoY to Rs. 531 crore and EBITDA margin improved by 175 bps to 18.8%, led by higher realization and operating leverage from increased sales volume.
PAT increased by 98% to Rs.2,72 crore, driven by improvement in margins, reduction in finance cost and higher profitability from its international operations. Its Finance cost declined by 19% to Rs. 47 crore primarily because of lower average cost of borrowing.