Revenue and Profit Growth
Varun Beverages’ net sales have exhibited a strong upward trajectory, rising from ₹5,228 crore in 2018 to over ₹20,000 crore by the end of 2024. This represents a near fourfold increase in six years, underscoring the company’s successful market expansion and product penetration. The total operating income mirrors this growth, with no other operating income reported, indicating that core sales remain the primary revenue driver.
Operating profit (PBDIT) excluding other income has also shown consistent improvement, climbing from approximately ₹1,007 crore in 2018 to ₹4,711 crore in 2024. The operating profit margin has expanded from 19.25% in 2018 to 23.55% in 2024, reflecting enhanced operational efficiencies and cost management. Profit after tax (PAT) has surged from ₹297 crore in 2018 to ₹2,636 crore in 2024, with the PAT margin improving from 5.68% to 13.17% over the same period.
Earnings per share (EPS) have followed a similar pattern, increasing from ₹10.69 in 2018 to ₹7.67 in 2024 on a face value adjustment basis, with diluted EPS reaching ₹7.94 in 2024. The fluctuations in EPS reflect changes in equity capital and share consolidation over the years.
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Cost Structure and Margins
The company’s raw material costs have increased in line with sales, rising from ₹2,112 crore in 2018 to ₹8,294 crore in 2024. Despite this, the gross profit margin improved from 15.61% in 2018 to 21.9% in 2024, indicating effective pricing strategies and supply chain management. Other expenses have also increased but remain proportionate to revenue growth.
Interest expenses have fluctuated, peaking at ₹450 crore in 2024, reflecting increased borrowings to support expansion. However, the company has managed to maintain healthy gross profit (PBDT) levels, which rose from ₹816 crore in 2018 to ₹4,382 crore in 2024.
Balance Sheet and Financial Position
Varun Beverages’ total assets have grown substantially, from ₹8,376 crore in 2019 to ₹23,124 crore in 2024. Shareholders’ funds have expanded from ₹3,328 crore in 2019 to ₹16,610 crore in 2024, reflecting retained earnings and equity infusion. The book value per share has more than quadrupled from ₹10.25 in 2019 to ₹49.12 in 2024, signalling enhanced net asset value for shareholders.
The company’s total debt peaked in 2023 at over ₹5,194 crore but was reduced to ₹2,364 crore by 2024, indicating active deleveraging efforts. Long-term borrowings have decreased significantly, while short-term borrowings remain elevated to support working capital needs. Net current assets have improved markedly, turning positive in 2024 after several years of negative working capital, which bodes well for liquidity.
Cash Flow Trends
Operating cash flow has grown steadily, reaching ₹3,381 crore in 2024 from ₹1,307 crore in 2019. Despite substantial investing outflows to support capital expenditure and expansion, the company has maintained positive net cash inflows, with ₹2,024 crore generated in 2024. This reflects a balanced approach to growth and financial prudence.
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Summary of Historical Performance
Over the past six years, Varun Beverages has transformed into a significantly larger and more profitable enterprise. The company’s revenue has nearly quadrupled, supported by expanding margins and disciplined cost control. Profitability metrics such as operating profit and net profit have grown at a strong pace, with margins improving steadily. The balance sheet has strengthened with rising net worth and controlled debt levels, while cash flow generation remains robust despite heavy capital investments.
These trends highlight Varun Beverages’ successful execution of growth strategies and operational efficiencies, positioning it well within the competitive beverages sector. Investors can note the company’s consistent margin expansion, improving return ratios, and prudent financial management as key positives in its historical performance.
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